THE BILL ITSELF
HB 1431
Portable Benefits Accounts for Independent Contractors and Sole Proprietors
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A bill to be entitled
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An act relating to portable benefits accounts for
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independent contractors and sole proprietors; creating
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part III of ch. 448, F.S., entitled the "Voluntary
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Portable Benefits Act"; creating s. 448.31, F.S.;
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providing a short title; creating s. 448.32, F.S.;
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providing definitions; creating s. 448.33, F.S.;
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authorizing certain parties to make voluntary
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contributions to portable benefits accounts for
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independent contractors and sole proprietors;
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providing requirements for such contributions;
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providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Part III of chapter 448, Florida Statutes,
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consisting of ss. 448.31, 448.32, and 448.33, Florida Statutes,
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is created and entitled the "Voluntary Portable Benefits Act."
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Section 2. Section 448.31, Florida Statutes, is created to
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read:
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448.31 Short title.—This part may be cited as the
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"Voluntary Portable Benefits Act."
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Section 3. Section 448.32, Florida Statutes, is created to
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read:
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448.32 Definitions.—As used in this part, the term:
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(1) "Hiring party" means a person who hires or enters into
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a contract with an independent contractor or a sole proprietor.
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(2)(a) "Independent contractor" means a person who meets
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four of the following criteria:
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1. Maintains a separate business with his or her own work
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facility, truck, equipment, materials, or similar
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accommodations.
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2. Holds or has applied for a federal employer
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identification number, unless the person is a sole proprietor
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who is not required to obtain a federal employer identification
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number under state or federal regulations.
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3. Receives compensation for services rendered or work
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performed and such compensation is paid to a business rather
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than to an individual.
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4. Holds one or more bank accounts in the name of the
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business entity for purposes of paying business expenses or
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other expenses related to services rendered or work performed
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for compensation.
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5. Performs work or is able to perform work for any entity
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in addition to or besides the hiring party at his or her own
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election without the necessity of completing an employment
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application or process.
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6. Receives compensation for work or services rendered on
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a competitive-bid basis or completion of a task or a set of
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tasks as defined by a contractual agreement, unless such
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contractual agreement expressly states that an employment
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relationship exists.
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(b) If a person does not meet at least four of the
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criteria under paragraph (a), a person may still be presumed to
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be an independent contractor and not an employee based on full
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consideration of the nature of the person's situation with
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regard to whether the person meets any of the following
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conditions:
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1. Performs or agrees to perform specific services or work
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for a specific amount of money and controls the means of
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performing the work or services.
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2. Incurs the principal expenses related to the service or
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work that he or she performs or agrees to perform.
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3. Is responsible for the satisfactory completion of the
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work or services that he or she performs or agrees to perform.
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4. Receives compensation for work or services performed
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for a commission or on a per-job basis and not on any other
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basis.
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5. May realize a profit or suffer a loss in connection
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with performing work or services.
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6. Has continuing or recurring business liabilities or
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obligations.
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7. Has success or failure in the person's business which
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depends on the relationship of business receipts to
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expenditures.
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(3)(a) "Portable benefits account" means an account that
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meets the following conditions:
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1. The account is opened by an independent contractor or a
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sole proprietor to fund the purchase of one or more benefit
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plans and is administered by a third-party portable benefits
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account provider chosen by the independent contractor or the
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sole proprietor.
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2. The account is assigned to a beneficiary of one or more
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benefit plans rather than to a hiring party.
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(b) As used in paragraph (a), the term "benefit plan"
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includes, but is not limited to, the following products:
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1. Health insurance.
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2. Income replacement insurance.
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3. Life insurance.
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4. Retirement benefits.
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(4) "Portable benefits account provider" means the
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administrator of a portable benefits account and includes:
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(a) A bank, as defined in s. 220.62(1).
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(b) An investment management firm.
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(c) A technology provider or program manager that offers
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services through a bank or investment management firm.
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(d) Any other person that demonstrates to the satisfaction
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of the Financial Services Commission that the manner in which
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the person will administer the portable benefits account will be
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consistent with the portable benefits account requirements under
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s. 448.33.
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(5) "Sole proprietor" has the same meaning as in s.
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440.02. Section 4. Section 448.33, Florida Statutes, is created to
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read:
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448.33 Voluntary contributions to portable benefits
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accounts for independent contractors and sole proprietors.—
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(1) Any person or entity, including an independent
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contractor; a sole proprietor; a hiring party, whether a public
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or private entity; or an Internet-based or application-based
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company, may voluntarily contribute funds to a portable benefits
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account for an independent contractor or a sole proprietor.
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(2)(a) Contributions to a portable benefits account may
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not be used as a criterion for determining a worker's employment
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classification.
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(b) Contributions to a portable benefits account may be
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made using:
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1. The funds of the hiring party; or
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2. A percentage of funds withheld from compensation owed
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to the independent contractor or sole proprietor if all the
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following conditions are met:
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a. The withholdings are voluntary and expressly agreed to
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in writing, and the agreement is written in clear and
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unambiguous language and prominently displayed in the work
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contract or a separate notice.
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b. The withholdings require the independent contractor or
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sole proprietor to opt in, and the independent contractor or
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sole proprietor may choose to opt out of the withholdings at any
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time.
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Section 5. This act shall take effect July 1, 2026.