SENATE BILL REPORT

SHB 1456

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.

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 Government Operations & Elections (originally sponsored by Representatives Hunt, Moscoso, Seaquist, Blake, Riccelli, Reykdal, Stanford, Fitzgibbon and Bergquist).

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 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 Enterprise Services (DES).

Summary of Bill: Deductions for qualified transit and parking benefits must be pretaxed to the full extent possible, as allowed under the federal internal revenue code. Eligibility for the pretax deduction requires that payment of the parking fee be made to the agency, DES, or a private parking vendor.