SENATE BILL REPORT

SHB 1518

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Government Operations, Tribal Relations & Elections, March 21, 2011

Title: An act relating to pretax payroll deductions for qualified transit and parking benefits.

Brief Description: Authorizing pretax payroll deductions for qualified transit and parking benefits.

Sponsors: House Committee on State Government & Tribal Affairs (originally sponsored by Representatives Hunt, Reykdal and Kenney).

Brief History: Passed House: 3/05/11, 66-31.

Committee Activity: Government Operations, Tribal Relations & Elections: 3/17/11, 3/21/11 [DP].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS, TRIBAL RELATIONS & ELECTIONS

Majority Report: Do pass.

Signed by Senators Pridemore, Chair; Prentice, Vice Chair; Swecker, Ranking Minority Member; Benton, Chase and Nelson.

Staff: Diane Smith (786-7410)

Background: State employees and public officers may request payroll deductions for various purposes under certain circumstances as enumerated in statute. Deductions to a financial institution may be authorized by the Office of Financial Management for purposes not enumerated but clearly related to state employment, goals of the agency, or for plans authorized by the state health care authority.

One of the enumerated purposes is to pay for parking furnished by an agency or by the Department of General Administration.

Summary of Bill: Parking deductions from the pay of state employees and state officials may be pretax for qualified transit and parking benefits, provided the parking payment is made to the agency, the Department of General Administration or a private parking vendor.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This is the only salary increase state employees will get this year. It allows them to pay a little less federal income tax by implementing an existing federal income tax allowance.

Persons Testifying: PRO: Representative Hunt, prime sponsor; Joan Cullen, WA State Department of Transportation; Matt Zuvich, Washington Federation of State Employees.