Senate committee advances bill to create portable benefit accounts for independent contractors

The Senate Banking and Insurance Committee on a voice vote adopted a strike-and-insert amendment to House Bill 4,009, the Portable Benefit Account Act, and reported the bill to the full Senate with a recommendation that it be referred to the Committee on Finance.

Committee counsel told the panel that the engrossed committee substitute would create a statutory framework allowing voluntary, portable benefit plans that can include retirement savings, health insurance, disability and life insurance, and unemployment benefits. "The bill allows any person or entity to voluntarily contribute funds to a portable benefit account for an independent contractor who resides in West Virginia or who performs actual work in the state," counsel said in explaining the measure and the amendment.

Patrice Onwuka, vice president of economic policy at Independent Women's Network, testified in support. "More than 95,000 West Virginians are independent contractors," Onwuka said, adding that the bill is intended to help workers who choose freelance or contract work to build financial stability without losing flexibility. She told the committee the proposal would permit hiring parties to contribute with clear written consent and would not change employment status: contributions "should not be used as a factor to determine whether someone is classified as an independent contractor or as a worker."

Counsel told the committee the amendment aligns the substitute with Senate Bill 402 and moves oversight responsibilities from the insurance commissioner into chapter 21 of the labor code under the commissioner of labor. The amendment also expands the definition of plan providers to include banks, investment management firms, technology providers and program managers and authorizes rulemaking, including emergency rules, to safeguard contributions.

The measure also includes changes to the state personal income tax code, counsel said, to allow West Virginia taxpayers to subtract contributions to voluntary portable benefit plans from federal adjusted gross income for taxable years beginning in 2026. Counsel said the governor's office requested the strike-and-insert and recommended that, if reported, the bill be referred to the Committee on Finance because of its tax provisions.

The committee adopted the strike-and-insert amendment as explained by counsel and then approved a motion to report the engrossed committee substitute, as amended, to the full Senate with the further recommendation that it first be referred to the Committee on Finance. Both actions were taken by voice vote; individual roll-call vote counts were not recorded in the transcript.

The committee adjourned after reporting the bill.