AN ACT

RELATING TO TRANSPORTATION; PROVIDING A QUALIFIED TRANSPORTATION FRINGE BENEFIT FOR STATE EMPLOYEES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     Section 1. A new section of Chapter 10, Article 7 NMSA 1978 is enacted to read:

     "QUALIFIED TRANSPORTATION FRINGE BENEFIT.--State agencies, state educational institutions and political subdivisions of the state may offer to their employees a qualified transportation fringe benefit in accordance with Section 132(f) of the Internal Revenue Code of 1986. The qualified transportation fringe benefit may be offered as an employee pretax deduction or an employer-paid benefit or a combination of the two, as determined by the department of finance and administration, the governing authority of an institution or the governing body of a political subdivision of the state."