The proposed bill introduces a new chapter, titled "The Commuter Transportation Benefits Act," to Title 28 of the General Laws concerning labor and labor relations. This chapter mandates that all covered employers, defined as those with five hundred (500) or more employees assigned, scheduled to work, working, or situated at the employer's place of business or work site(s) located within the state, must offer a pre-tax transportation fringe benefit program that provides commuter transit benefits in accordance with federal law. The bill outlines specific definitions, including "covered employer," "employee," and "pre-tax transportation fringe benefit," and establishes that the program must comply with the maximum benefit levels allowable under the Internal Revenue Code.

Additionally, the bill specifies exemptions from this requirement for certain entities, including the federal government, the State of Rhode Island and its subdivisions, local governments, and employees covered by existing collective bargaining agreements until their expiration. It also allows employers to demonstrate financial hardship to the director of the department of labor and training to avoid compliance. The legislation includes provisions for civil penalties for non-compliance, with penalties ranging from one hundred dollars ($100) for a first violation to two hundred fifty dollars ($250) for subsequent violations, and mandates a public awareness campaign conducted by the department of transportation in conjunction with the department of labor and training to inform the public about these commuter transportation benefits. The act is set to take effect on January 1, 2026.