Committee hears lengthy proponent testimony for bill to create voluntary portable benefits for independent contractors
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Summary
House Bill 2602 would authorize voluntary portable benefit plans administered by third-party providers, let hiring parties contribute to individual portable benefit accounts, and provide state tax treatment for contributions beginning tax year ending 12/31/2026; proponents emphasized the bill preserves independent contractor status and is non-mandatory.
Representative Williams and the reviser summarized House Bill 2602 as a voluntary framework allowing independent contractors to create portable benefit accounts administered by third-party providers and to receive contributions from hiring parties, other entities, or their own funds.
Why it matters: Proponents said the proposal would let benefits "follow the worker, not the job," allowing access to health coverage, disability/income-replacement insurance, or retirement benefits without reclassifying independent workers as employees. The reviser explained portable benefit plan providers could include banks, investment managers, technology providers, or program managers approved by the state bank commissioner, and that the bill amends KSA 70-932.117 to provide state tax treatment of contributions for taxable years beginning 12/31/2026.
Proponent case and examples: Patrice Ann Wuka of the Independent Women's Forum said portable benefits close a gap for the more than "220,000 independent workers" in Kansas and stressed the voluntary nature of the bill. Tanner Temple of Americans for Prosperity and Jonathan Wolfson of the Institute for the American Worker argued the bill modernizes benefits, protects worker choice, and reduces barriers for entrepreneurship. Wolfson cited experience in Utah, Alabama, and Tennessee as states with similar laws and explained the bill's aim to align Kansas tax treatment of contributions with existing federal caps in many benefit accounts.
Concerns raised and responses: Committee members asked how multiple client contributions would work, whether health insurance becomes confusing if multiple entities pay in, and whether the lack of explicit contribution limits creates a risk of tax sheltering. Proponents replied that individuals create and control their accounts and may negotiate contribution arrangements with clients; Wolfson said federal tax caps constrain excess contributions and the reviser noted the bill intentionally leaves operative details (limits, deadlines, disclosure) to plan administrators and the implementing oversight (state bank commissioner) rather than prescribing every administrative rule in statute.
Record and next steps: The committee recorded written proponent submissions from the Mercatus Center at George Mason and the Libertas Institute and heard multiple oral proponents; no neutral or opponent testimony was recorded and the chair closed the hearing on HB 2602. The chair scheduled committee work sessions Wednesday and Friday to consider bills and potential amendments.
