House Bill 987 (AS PASSED HOUSE AND SENATE)
By: Representatives Jones of the 25th, Thomas of the 21st, Anderson of the 10th, Cameron of
the 1st, and Barrett of the 24th
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 8 of Title 34 of the Official Code of Georgia Annotated, relating to
employment security, so as to provide for portable benefit plans and portable benefit
accounts for independent contractors; to provide for definitions; to provide for voluntary
contributions; to provide for independent contractors to opt in to withholdings; to provide for
independent contractors to opt out at any time; to exclude voluntary contributions from
establishing the classification of employer or employment; to provide for related matters; to
provide for a short title; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
This Act shall be known and may be cited as the "Voluntary Portable Benefit Plan Act."
SECTION 2.
Chapter 8 of Title 34 of the Official Code of Georgia Annotated, relating to employment
security, is amended in Article 2, relating to definitions, by adding a new Code section to
read as follows:
<ins>"34-8-43.1.
(a) As used in this chapter, the term:
(1) 'Hiring party' means a person or entity that hires or enters into a contract for the
performance of services by an independent contractor.
(2) 'Independent contractor' means an individual who performs services for a hiring party
in exchange for compensation but is free from control or direction over the performance
of such services, as set forth in subsection (f) of Code Section 34-8-35.
(3) 'Portable benefit account' means an account that is administered by a portable benefit
account provider and owned and controlled by an independent contractor who can
allocate funds within the account to pay for or into one or more portable benefit plans,
to pay any costs for services related to one or more portable benefit plans, or to pay for
other expenses as determined by such independent contractor.
(4) 'Portable benefit account provider' means a bank or financial institution that has
federal deposit insurance; an investment management firm; a technology provider or
program manager that offers portable benefit account services through a bank, financial
institution, or investment management firm; or other legal entity that administers a
portable benefit account in compliance with the provisions of this Code section.
(5) 'Portable benefit plan' means a plan that is held by an independent contractor and that
provides for certain benefits, including, but not limited to, health insurance,
unemployment insurance, disability insurance, life insurance, or retirement benefits for
such independent contractor.
(b) Any person or entity, including, but not limited to, an internet or application based
entity, may voluntarily contribute funds to a portable benefit account of an independent
contractor.
(c) Voluntary contributions to a portable benefit account of an independent contractor as
provided for in subsection (b) of this Code section may be made using funds withheld from
compensation owed to such independent contractor, provided that:
</ins>
<ins>(1) Withholding such compensation is expressed in a written agreement;
(2) Such written agreement is clear, unambiguous, and prominently displayed in the
hiring contract or other contract with such independent contractor;
(3) Such withholding is voluntary and requires the independent contractor to opt in; and
(4) The independent contractor may choose to opt out of such withholding at any time.
(d) Voluntary contributions by a person or entity to a portable benefit account of an
independent contractor as provided for in subsections (b) and (c) of this Code section shall
not cause such person or entity to be classified as an employer as set forth in Code Section
34-8-33 nor cause services provided by such independent contractor to be classified as
employment as set forth in Code Section 34-8-35."
</ins> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.