Senate Finance Committee advances workforce-readiness bill adding micro-credentials and portable benefits

Legislative Counsel told the Senate Finance Committee that the committee substitute for Senate Bill 402 "relates to workforce readiness and was introduced at the request of the governor." The substitute would create a micro-credential program to be administered by the Higher Education Policy Commission, set standards for verifying completion, and assist institutions in implementing micro-credentialing.

Counsel also said the bill creates a Voluntary Portable Benefits Plan that would allow independent contractors to enroll in third-party benefit accounts and permit hiring entities to contribute if the contractor agrees. Counsel described tax incentives for contributions, saying contributions would be deductible for corporate and personal income tax purposes and that receipt of benefits could be treated as a personal income tax deduction. Counsel noted an extension of the state's apprenticeship training tax credit to apply to apprenticeship programs registered with the U.S. Department of Labor rather than only construction trades.

Counsel cautioned the committee that the fiscal impact of the voluntary portable benefits provisions is uncertain and that House Bill 4009 contains an identical provision; as Counsel put it, "those 2 bills are going to have to get married." After brief discussion and no amendments, the committee agreed to the committee substitute for the committee substitute and the Vice Chair moved that it be reported to the full Senate with a recommendation that it pass; the motion carried by voice vote.

The committee did not provide a roll-call vote or a fiscal estimate for the portable-benefits deduction; counsel described the revenue effect as "an undetermined amount depending upon the number of contributions." The committee's action was limited to reporting the substitute to the full Senate for further consideration.