Tennessee SB 1377: Insurance, Health, Accident - As enacted, enacts the "Voluntary Portable Benefit Plan Act"; makes related changes. - Amends TCA Title 50 and Title 65, Chapter 15, Part 3.

Bill Text

House Insurance 1

Amendment No. 1 to HB0494

Kumar
Signature of Sponsor

AMEND Senate Bill No. 1377 House Bill No. 494*

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by deleting all language after the enacting clause and substituting:
SECTION 1. Tennessee Code Annotated, Title 50, Chapter 1, is amended by adding
the following as a new part:
50-1-1101.
This part is known and may be cited as the "Voluntary Portable Benefit Act."
50-1-1102.
As used in this part:
(1) "Benefit plan" includes:
(A) Health insurance;
(B) Income replacement insurance;
(C) Life insurance;
(D) Retirement benefits; and
(E) Other benefits that may customarily be provided as part of a
benefit plan;
(2) "Employee" means an individual who performs services for an
employer for wages, and the services performed by the individual qualify as an
employer-employee relationship with the employer based upon consideration of
the twenty-factor test described in § 50-2-111;
(3) "Hiring party" means a person who hires or enters into a contract with
an independent contractor;

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(4) "Independent contractor" means an individual who performs services
for a hiring party in exchange for compensation, and the relationship with the
hiring party qualifies the individual as an independent contractor based upon
consideration of the twenty-factor test described in § 50-2-111;
(5) "Portable benefit account" means an account opened by an
independent contractor to fund the purchase of one (1) or more benefit plans and
that is administered by a third-party portable benefit account provider chosen by
the independent contractor and assigned to a beneficiary of one (1) or more
benefit plans rather than a hiring party; and
(6) "Portable benefit account provider" means a bank, as defined in
Section 3(a)(1) of the Federal Deposit Insurance Act (12 U.S.C. § 1813(a)(1)); an
investment management firm; or a technology provider or program manager that
offers services through a bank or investment management firm.
50-1-1103.
(a) An individual or entity, including a hiring party, whether public or private, an
independent contractor, or an internet or application-based company, may voluntarily
contribute funds to a portable benefit account for an independent contractor.
(b) Contributions to a portable benefit account must not be used as a criterion for
determining a worker's employment classification under this title, or title 65, chapter 15.
(c) Contributions to a portable benefit account may be made using the funds of a
hiring party or a percentage of funds withheld from the compensation owed to an
independent contractor, as long as:
(1) Withholding such compensation is expressed in a written agreement;
(2) Such written agreement is clear, unambiguous, and prominently
displayed either in the work contract or a separate notice;
(3) Such withholdings are voluntary and require the independent
contractor to opt-in; and

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(4) The independent contractor may choose to opt-out of such
withholdings at any time.
SECTION 2. Tennessee Code Annotated, Section 50-8-101(1)(B), is amended by
deleting the language "In return for compensation from the third-party or marketplace platform,
offers" and substituting "In return for compensation from the third-party or marketplace platform,
including compensation in the form of a contribution to a portable benefit account as described
in § 50-1-1103, offers".
SECTION 3. Tennessee Code Annotated, Section 50-8-102(a)(9), is amended by
deleting the language "marketplace platform provides no medical or other insurance benefits to
the marketplace contractor, and the".
SECTION 4. Tennessee Code Annotated, Section 65-15-301(4), is amended by
deleting the language "control, direct, or manage the personal vehicles" and substituting
"control, direct, or manage, as the applicability of such terms are understood pursuant to § 50-2-
111, the personal vehicles".
SECTION 5. This act takes effect upon becoming a law, the public welfare requiring it.