Committee advances portable benefits bill to let contractors carry employer‑funded accounts

The Select Water Committee on a recorded vote advanced Senate File 41 on portable benefit accounts, a bill that would let independent contractors open accounts to receive employer or contractor contributions for health, retirement and other benefits.

Senator Olson, the bill's primary sponsor, told the committee the proposal is "pretty straightforward legislation" that does not change employment status: "It does not by virtue of receiving benefits, it does not change your employment classification." He said the bill cites existing state law to define independent contractors and creates a new portable benefit account structure that institutions could administer to fund health, income‑replacement, life insurance or retirement benefits.

Supporters said the accounts are voluntary for both contractors and hiring parties. Tyler Lindholm of Americans for Prosperity said the accounts "provide an opportunity" for more than 65,000 independent contractors in Wyoming to access benefits while preserving personal choice. Jason Wolf of the Department of Workforce Services told the committee the department has "no fiscal impact on the bill or any issues with it." Credit‑union witnesses asked the committee to replace repeated references to "bank" with the broader term "financial institution."

Committee members debated contract mechanics and opt‑out authority. Senator Simons and others pressed whether an employer could stop contributing after entering an agreement; sponsor Olson said the bill requires a clear written agreement and that the independent contractor must opt into any withholding. The committee adopted an amendment to expressly allow a hiring party to opt out of the agreement with at least 60 days' notice to the contractor so long as the written agreement addresses terms.

The committee adopted three substantive amendments: adding "dental and vision" to the list of benefits, replacing several uses of the word "bank" with "financial institutions," and inserting a provision authorizing a hiring party to opt out with at least 60 days' notice. Senator Khan moved the bill and Senator Steinmetz seconded. A roll‑call vote on the bill as amended recorded ayes from Senators Crum, Hutchings, Scott, Steinmetz and Chairman Brennan; the clerk announced five ayes and the bill passed the committee.

The bill will proceed in its amended form for further consideration by the legislative body.