PORTABLE BENEFIT PLAN ACT – Adds to existing law to establish the Portable Benefit Plan Act.

LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
645
BY
BUSINESS
COMMITTEE
AN
ACT
1
RELATING
TO
THE
PORTABLE
BENEFIT
PLAN
ACT;
AMENDING
TITLE
44,
IDAHO
CODE,
2
BY
THE
ADDITION
OF
A
NEW
CHAPTER
28,
TITLE
44,
IDAHO
CODE,
TO
PROVIDE
A
3
SHORT
TITLE,
TO
DEFINE
TERMS,
TO
PROVIDE
FOR
ADMINISTRATION
OF
PORTABLE
4
BENEFIT
PLANS,
AND
TO
PROVIDE
FOR
TAX
IMPLICATIONS;
AND
DECLARING
AN
5
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
6
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
7
SECTION
1.
That
Title
44,
Idaho
Code,
be,
and
the
same
is
hereby
amended
8
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
9
ter
28,
Title
44,
Idaho
Code,
and
to
read
as
follows:
10
CHAPTER
28
1
1
PORTABLE
BENEFIT
PLAN
ACT
12
44
-
2801.
SHORT
TITLE.
This
act
shall
be
known
and
may
be
cited
as
the
13
"Portable
Benefit
Plan
Act."
14
44
-
2802.
DEFINITIONS.
For
the
purposes
of
this
chapter:
15
(1)
"Bank"
means
a
state
bank,
national
bank,
credit
union,
out
-
of
-
16
state
state
-
chartered
bank,
or
foreign
bank
organized
under
the
laws
of
a
17
territory
of
the
United
States,
the
Commonwealth
of
Puerto
Rico,
Guam,
Amer
-
18
ican
Samoa,
the
United
States
Virgin
Islands,
or
Greenland
with
deposits
19
insured
by
the
federal
deposit
insurance
corporation.
20
(2)
"Department"
means
the
Idaho
department
of
insurance.
21
(3)
"Hiring
party"
means
a
person
or
entity
who
hires
or
enters
into
a
22
contract
with
an
independent
contractor.
23
(4)
"Independent
contractor"
means
any
person
who
renders
service
for
24
a
specified
recompense
for
a
specified
result,
under
the
right
to
control
or
25
actual
control
of
the
independent
contractor's
principal
as
to
the
result
of
26
the
independent
contractor's
work
only
and
not
as
to
the
means
by
which
such
27
result
is
accomplished.
28
(5)
"Portable
benefit
account"
means
an
account
owned
by
an
independent
29
contractor
to
fund
the
purchase
of
one
(1)
or
more
benefit
plans.
30
(6)
"Portable
benefit
account
provider"
means
the
administrator
of
a
31
portable
benefit
account
and
includes:
32
(a)
A
bank;
33
(b)
An
investment
management
firm;
34
(c)
A
technology
provider
or
program
manager
that
offers
services
35
through
a
bank
or
investment
management
firm;
or
36
(d)
Any
other
person
who
demonstrates
to
the
satisfaction
of
the
37
department
that
the
manner
in
which
the
person
will
administer
the
38
portable
benefit
account
will
be
consistent
with
the
portable
benefit
39
account
requirements
under
this
chapter.
40

2
(7)
"Portable
benefit
plan"
means
a
benefit
plan:
1
(a)
Administered
by
a
third
party
benefit
plan
provider
chosen
by
an
in
-
2
dependent
contractor
and
assigned
to
a
beneficiary
rather
than
to
a
hir
-
3
ing
party;
and
4
(b)
Includes
but
is
not
limited
to:
5
(i)
Disability
insurance;
6
(ii)
Health
insurance;
7
(iii)
Income
replacement
insurance;
8
(iv)
Life
insurance;
9
(v)
Retirement
benefits;
or
10
(vi)
Unemployment
insurance.
1
1
44
-
2803.
ADMINISTRATION.
(1)
Any
person
or
entity,
whether
public
or
12
private,
including
an
internet
-
based
or
application
-
based
company,
may
vol
-
13
untarily
contribute
funds
to
a
portable
benefit
account
for
an
independent
14
contractor.
15
(2)
Contributions
by
a
hiring
party
to
any
portable
benefit
account
16
shall
not
be
treated
as
evidence
that
a
worker
is
an
employee
of
the
hiring
17
party
pursuant
to
employment
security
law,
worker's
compensation
law,
the
18
Internal
Revenue
Code,
or
any
state
and
federal
employment
or
labor
laws.
19
(3)
Contributions
to
a
portable
benefit
account
may
be
made
using:
20
(a)
The
funds
of
the
hiring
party;
or
21
(b)
A
percentage
of
funds
withheld
from
the
compensation
owed
to
an
in
-
22
dependent
contractor
if
all
of
the
following
conditions
are
met:
23
(i)
The
withholding
of
compensation
is
expressly
agreed
to
in
24
writing;
25
(ii)
The
written
agreement
is
clear,
unambiguous,
and
prominently
26
displayed
either
in
a
work
contract
or
in
a
separate
invoice;
27
(iii)
The
withholdings
are
voluntary
and
require
the
independent
28
contractor
to
opt
-
in;
and
29
(iv)
The
independent
contractor
may
choose
to
opt
-
out
of
such
30
withholdings
at
any
time.
31
44
-
2804.
TAX
IMPLICATIONS.
(1)
A
hiring
party
that
contributes
funds
32
to
a
portable
benefit
account
pursuant
to
section
44
-
2803(3)(a)
or
(b),
33
Idaho
Code,
may
deduct
as
a
business
expense
an
amount
equal
to
one
hundred
34
percent
(100%)
of
any
such
contributions
during
the
applicable
tax
year.
35
(2)
An
independent
contractor
may
exclude
from
taxable
income
an
amount
36
equal
to
one
hundred
percent
(100%)
of
the
amount
contributed
by
a
hiring
37
party
pursuant
to
section
44
-
2803(3)(a)
or
(b),
Idaho
Code,
during
the
ap
-
38
plicable
tax
year.
39
SECTION
2.
An
emergency
existing
therefor,
which
emergency
is
hereby
40
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
41
July
1,
2026.
42