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House approves bill allowing portable benefit accounts for independent contractors
Summary
The House passed Senate Bill 1377 to let independent contractors set up voluntary portable benefit accounts for life, health, retirement and income-replacement benefits. Sponsor said the accounts would be voluntary, portable and managed by third-party providers; the bill passed on a recorded vote.
The Tennessee House approved Senate Bill 1377 on third reading, a measure intended to let independent contractors — including gig workers, freelancers and consultants — establish voluntary portable benefit accounts.
Chairman Baum, sponsor of the substitute, said the bill "would allow independent contractors to have portable benefit accounts without changing their employment status." He described the accounts as voluntary, flexible and portable; contributions could come from customers, people who hire them, or via withholding at the contractor's election. Baum said the accounts could be used for life insurance, retirement, health insurance or income-replacement insurance and would be managed by third-party providers.
Why it matters: Backers said the bill helps workers who lack employer-sponsored benefits to accumulate protections that can move with them from job to job. Supporters argued the structure is voluntary and does not alter an individual's classification as an independent contractor. The House adopted the bill after a brief floor discussion and a recorded vote.
Formal action: Chairman Baum moved passage of the Senate substitute and the House passed Senate Bill 1377 on third and final consideration. The clerk recorded the tally as 82 yes, 13 no. The presiding officer declared the bill passed.
Next steps: The bill will proceed according to the legislative process. Sponsors said additional rulemaking or third-party provider standards will govern account administration.
