Bill Summary – FastDemocracy

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  CoWcumember^^ry^Ch                                            Councilmember Charles Allen

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                                              A     BILL

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            IN    THE     COUNCIL        OF       THE   DISTRICT        OF   COLUMBIA

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  To amend the Sustainable DC Omnibus Act of 2014 to require covered employers that offer

         parking benefits to any employees in addition to compensation to offer those employees a

         Clean-air Transportation Fringe Benefit in an amount equal to or more than the market

         value of the parking benefit minus any required employee contribution to the parking

1          expense, increase its financial contribution to the employee's health coverage, or the

         employee's taxable wages, or both, such that the total increased employer contribution will

         equal the full amount of the parking benefit offered, pay a Clean Air Compliance fee of

         $100 per month for each employee who is offered parking benefits, cease offering parking

         benefits, or develop a transportation demand management plan that the District Department

         of Transportation has determined is likely to reduce the number of commuter trips

         employees make by car; to define the market value of parking; and to establish registration

         requriements for covered employers.

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         BE IT ENACTED BY THE COUNCIL OF THE DISTRICT OF COLUMBIA, That this

  act may be cited as the "Transportation Benefits Equity Amendment Act of 2019".

         Sec. 2. The Sustainable DC Omnibus Act of 2014, effective December 17, 2014 (D.C.

  Law 20-142; D.C. Official Code  32-151 etseq.), is amended as follows:

         (a) Section 301 (D.C. Official Code  32-151) is amended as follows:

                 (1) Paragraph (1) is redesignated as paragraph (lA).

6                  (2) A new paragraph (1) is added to read as follows:

                 "(1) "Clean-air Transportation Fringe Benefit" means a qualified transportation

  fringe, as that term is defined in section 132(f) of the Internal Revenue Code, approved July 18,

  1984 (98 Stat. 877; 26 U.S.C.  132(f)), that is provided to an employee in addition to

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compensation. The term "Clean-air Transportation Fringe Benefit" does not include a parking

1 b e n e fi t . " .

(3) A new paragraph (3A) is added to read as follows:

"(3A) "Parking benefit" means personal motor vehicle parking provided to an

employee, either directly by the employer or through an employer subsidy, on or near the

business premises. The term "parking benefit" does not include a benefit that allow an employee

to pay for parking in lieu of compensation or parking that is provided to an employee who is

required to use a personal vehicle in the regular performance of their work.".

(b) New sections 302a and 302b are added to read as follows:

"Sec. 302a. Parking benefit equivalent.

"(a) A covered employer that offers a parking benefit to an employee shall:

"(1) Offer an employee, who is offered and turns down a parking benefit, a Clean-

air Transportation Fringe Benefit in an amount equal to or more than the market value of the

parking benefit minus any required employee contribution to the parking expense; provided, that

if the amount offered exceeds the maximum tax-free benefit allowed pursuant to section 132(f)

of the Internal Revenue Code, approved July 18, 1984 (98 Stat. 877; 26 U.S.C.  132(f))

("Section 132(f)"), or the employee's eligible expenses under Section 132(f) is less than the

amount required to be offered, or both, the excess shall be provided as additional compensation

to the employee;

"(2) Increase its financial contribution to the health coverage, or the taxable

wages, or both, of an employee who declines both the parking benefit and the Clean-air

Transportation Fringe Benefit such that the total increased employer contribution equals the

market value of the parking benefit offered;

"(3) Pay a Clean Air Compliance fee of $ 100 per month for each employee who is

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offered parking benefits;

"(4) Cease to offer parking benefits; or

"(5) Develop a transportation demand management plan that the District of

Columbia Department of Transportation ("Department") has determined is likely to reduce by at

least 10% from the previous year the number of commuter trips employees made by car or taxi

until 25% or less of employees' commuter trips are made by car or taxi; provided, that:

"(A) The employer shall submit to the Department annual data reports on

actual commute mode share;

"(B) If the Department determines that the employer has failed to reduce

by the amount required purusuant to this paragraph the number of commuter trips made by car or

taxi, the employer shall have 180 additional days to meet the target set out in the transportation

demand management plan; and

"(C) If, after 180 days, the employer has failed to has failed to reduce by

the amount required purusuant to this paragraph the number of commuter trips made by car or

taxi, the employer shall within 30 days begin offering a Clean-air Transportation Fringe Benefit,

pursuant to paragraph (1) of this subsection, or begin paying the Clean Air Compliance fee,

pursuant to paragraph (3) of this subsection."

"(b) For the purposes of this subsection, the market value of a parking benefit shall be:

"(1) The publicly advertised price of parking, which is similar to the parking

offered by the employer, available for sale to the public at a privately-owned parking facility

within one-quarter mile of the employee's place of work; or

"(2) An amount determined by the employer if there is no privately-owned

parking facility within one-quarter mile of the employee's place of work that provides for sale to

the public parking similar to the parking offered by the employer; provided, that the employer

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shall provide to the District of Columbia Department of Transportation ("Department") a

justification, in a form determined by the Department, of the value of parking.

"(c) This section shall not apply to a covered employer that provides parking benefits if,

before the effective date of the Transportation Benefits Equity Amendment Act of 2019, as

introduced on February 5,2019 (Bill 23-XXX), the employer owns the parking spots utilized by

employees who are offered parking benefits.

"(d) If a covered employer:

"(1) Has a lease for the parking spots utilized by employees who are offered

parking benefit and the lease was executed before the effective date of the Transportation

Benefits Equity Amendment Act of 2019, as introduced on February 5, 2019 (Bill 23-XXX), this

section shall apply at the end of the current lease, excluding lease extensions; or

"(2) Provides a parking benefit and does not own or lease the parking spots

utilized by employees who are offered a parking benefit, this section shall apply 60 days after the

effective date of the Transportation Benefits Equity Amendment Act of 2019, as introduced on

February 5,2019 (Bill 23-XXX).

"(e) A covered employer that fails to comply with this section shall be subject to civil

fines and penalties pursuant to the Department of Consumer and Regulatory Affairs Civil

Infractions Act of 1985, effective October 5,1985 (D.C. Law 6-42; D.C. Official Code  2-

1801.01 ct seq.) ("Civil Infractions Act"). Enforcement and adjudication of an infraction shall be

pursuant to the Civil Infi"actions Act.

"Sec. 302b. One-time registration with biennial updates.

"(a) Each covered employer shall within 90 days after the effective date of the

Transportation Benefits Equity Amendment Act of 2019, as introduced on February 5, 2019 (Bill

23-XXX) and every two years thereafter submit to the Mayor a report that includes:

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1 2 " ( 1 ) To t a l n u m b e r o f e m p l o y e e s ;

3 " ( 2 ) T h e n u m b e r o f e m p l o y e e s :

4     "(A.)      Offered          a    parking          b e n e fi t ;

5     "(B)      Utilizing          a    parking          b e n e fi t ;

"(C) Offered a Clean-air Transportation Fringe Benefit; and

7 " ( D ) U t i l i z i n g a C l e a n - a i r T r a n s p o r t a t i o n F r i n g e B e n e fi t .

"(3) Any other information required by the Mayor by rulemaking.

"(b) Beginning October 1, 2020, the Mayor shall provide an annual report to the Council

of aggregate data from the registration reports and assessments of how many covered employers

have not filed the report required by subsection (a) of this section, and actions to be taken to

achieve full registration and compliance.".

(b) Section 303 (D.C. Official Code  32-153) is amended as follows:

(1) Designate the existing text as subsection (a).

(2) A new subsection (b) is added to read as follows:

"(b) Within 90 days after the effective date of the Transportation Benefits Equity

Amendment Act of 2019, as introduced on February 5,2019 (Bill 23-XXX), the Mayor, pursuant

to Title I of the District of Columbia Administrative Procedure Act, approved October 21, 1968

(82 Stat. 1204; D.C. Official Code  2-501 et seq.), shall issue rules to implement the provisions

of sections 302a and 302b.".

Sec. 3. Fiscal impact statement.

The Council adopts the fiscal impact statement in the committee report as the fiscal

impact statement required by section 4a of the General Legislative Procedures Act of 1975,

approved October 16, 2006 (120 Stat. 2038; D.C. Official Code  l-301.47a).

Sec. 4. Effective date.

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This act shall take effect following approval by the Mayor (or in the event of veto by the

Mayor, action by the Council to override the veto), a 30-day period of congressional review as

provided in section 602(c)(1) of the District of Columbia Home Rule Act, approved December

24,1973 (87 Stat. 813; D.C. Official Code  1-206.02(c)(1)), and publication in the District of

Columbia Register.

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