HB987: HB987 Voluntary Portable Benefit Plan Act; enact

26 LC 52 0908/AP 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 to1 employment security, so as to provide for portable benefit plan s and portable benefit2 accounts for independent contractors; to provide for definition s; to provide for voluntary3 contributions; to provide for independent contractors to opt in to withholdings; to provide for4 independent contractors to opt out at any time; to exclude volu ntary contributions from5 establishing the classification of employer or employment; to provide for related matters; to6 provide for a short title; to repeal conflicting laws; and for other purposes.7 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:8 SECTION 1.9 This Act shall be known and may be cited as the "Voluntary Portable Benefit Plan Act."10 SECTION 2.11 Chapter 8 of Title 34 of the Official Code of Georgia Annotated , relating to employment12 security, is amended in Article 2, relating to definitions, by adding a new Code section to13 read as follows:14 H. B. 987 - 1 - 26 LC 52 0908/AP "34-8-43.1.15 (a) As used in this chapter, the term:16 (1) 'Hiring party' means a person or entity that hires or ente rs into a contract for the17 performance of services by an independent contractor.18 (2) 'Independent contractor' means an individual who performs services for a hiring party19 in exchange for compensation but is free from control or direction over the performance20 of such services, as set forth in subsection (f) of Code Section 34-8-35.21 (3) 'Portable benefit account' means an account that is administered by a portable benefit22 account provider and owned and controlled by an independent con tractor who can23 allocate funds within the account to pay for or into one or mor e portable benefit plans,24 to pay any costs for services related to one or more portable benefit plans, or to pay for25 other expenses as determined by such independent contractor.26 (4) 'Portable benefit account provider' means a bank or financ ial institution that has27 federal deposit insurance; an investment management firm; a tec hnology provider or28 program manager that offers portable benefit account services through a bank, financial29 institution, or investment management firm; or other legal enti ty that administers a30 portable benefit account in compliance with the provisions of this Code section.31 (5) 'Portable benefit plan' means a plan that is held by an independent contractor and that32 provides for certain benefits, including, but not limited to, h ealth insurance,33 unemployment insurance, disability insurance, life insurance, or retirement benefits for34 such independent contractor.35 (b) Any person or entity, including, but not limited to, an in ternet or application based36 entity, may voluntarily contribute funds to a portable benefit account of an independent37 contractor.38 (c) Voluntary contributions to a portable benefit account of an independent contractor as39 provided for in subsection (b) of this Code section may be made using funds withheld from40 compensation owed to such independent contractor, provided that:41 H. B. 987 - 2 - 26 LC 52 0908/AP (1) Withholding such compensation is expressed in a written agreement;42 (2) Such written agreement is clear, unambiguous, and prominen tly displayed in the43 hiring contract or other contract with such independent contractor;44 (3) Such withholding is voluntary and requires the independent contractor to opt in; and45 (4) The independent contractor may choose to opt out of such withholding at any time.46 (d) Voluntary contributions by a person or entity to a portable benefit account of an47 independent contractor as provided for in subsections (b) and (c) of this Code section shall48 not cause such person or entity to be classified as an employer as set forth in Code Section49 34-8-33 nor cause services provided by such independent contrac tor to be classified as50 employment as set forth in Code Section 34-8-35."51 SECTION 3.52 All laws and parts of laws in conflict with this Act are repealed.53 H. B. 987 - 3 -