Gov. Brown Vetoes Commuter Benefits Act, Cites Cost Agument
Sounding like a spokesperson for the Republican opposition to the bill, Governor Jerry Brown announced a veto of SB 582, citing the cost to small businesses. From his veto statement:
While I support the goal of reducing vehicle trips, this bill would impose a new mandate on small business at a time of economic uncertainty.

Governor Brown tosses up an airball. Photo: Office of the Governor via KQED
There’s only one problem with this statement. SB 582 doesn’t require anything of small business without the action of local government bodies known as Municipal Planning Organizations or Air Quality Districts (MPO’s and AQD’s) and the mandate they could require would barely cost businesses anything. A coalition of environmental, transportation reform and public health groups supported the legislation as well as some large employers including Facebook and Genetech.
“We’re disappointed that Governor Brown vetoed this bill, which would have saved money for California employers and employees, while improving our air quality,” writes Rebecca Saltzman, a Program Associate with the California League of Conservation Voters.
So what would SB 582 have actually done? It would have given MPO’s and AQD’s the ability to require businesses with 20 full-time employees (or in some cases 50 depending the transit options and air quality of the area) to provide commuter benefits to employees who commute to and from work without their car. Despite the Governor’s rhetoric, there was a near-cost-free options to meet this requirement.
- Give employees the option to pay for their transit, vanpooling or bicycling expenses with pre-tax dollars, as currently allowed by federal law;
- Offer employees a transit or vanpool subsidy up to $75 per month;
- Provide employees with a free shuttle or vanpool operated by or for the employer.
The first option basically has employers deduct an amount up to $75 from employees pay checks and provide them with a separate check for that amount to cover commuting expenses. This allows transit and bike commuters to have a tax-free, or tax reduced if their monthly transit ticket is more than $75. Read more…












