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Senate committee gives favorable report to bill allowing portable benefits for independent contractors
Summary
A Senate committee advanced SB 86, a bill patterned on Utah law that would let independent contractors open portable benefit accounts for health and retirement; the measure received a roll-call favorable report after proponents argued it would expand access for gig and independent workers.
A Senate committee voted to give SB 86 a favorable report after supporters said the bill would let independent contractors establish portable accounts for health care and retirement benefits. The measure, patterned after a Utah law, was reported favorably on a roll-call vote at the committee meeting.
Proponents said the bill would allow contractors who lack a traditional employer-employee relationship to create individual accounts held by a bank, brokerage or investment manager that could receive contributions from contracting companies without converting the worker to an employee. “This would give them the ability to establish some benefits that would be portable,” Senator Orr said, describing the bill as modeled on Utah’s experience.
The bill’s sponsor, Senator Orr, told the committee the legislation is aimed at gig workers and other independent contractors who cannot currently receive employer-sponsored benefits because the contracting relationship does not meet the employer test. “It may get amended in the legislative process because it is a bit cutting edge but we think this is a good product,” Orr said, and asked the committee to consider advancing it.
Other senators voiced support for the concept as a way to broaden access to retirement and health options for workers such as rideshare drivers and independent real estate agents. “I’ve read the bill and I think it’s a very good movement toward the future and also in individual opportunity there,” an unnamed senator who spoke in favor said.
A motion to report the bill favorably was made and seconded, and the committee proceeded to a roll-call vote. Senators recorded on the roll as voting “Aye” included Aubrey, Coleman, Madison, Jones, Livingston, Orr, Price and Stewart. After the vote, the chair said, “Bill’s given a favorable report.”
SB 86 now proceeds from committee with a favorable recommendation; the transcript does not specify any amendments adopted in committee nor a floor schedule.
The bill’s supporters said the accounts would be statewide and portable within the state; they cited Utah’s model as precedent. Details such as vendor oversight, tax treatment of distributions, and whether the accounts would be open to specific professions were discussed as subject to the bill’s text and potential amendment in the legislative process. The committee record shows the sponsor is open to adjustments and plans to continue work as the bill moves forward.
