Establishes provisions relating to portable benefit accounts. (BDR 53-621)

(Reprinted with amendments adopted on April 21, 2025)
FIRST REPRINT S.B. 336

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SENATE BILL NO. 336–SENATOR ROGICH

MARCH 12, 2025
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Referred to Committee on Commerce and Labor

SUMMARY—Establishes provisions relating to portable benefit
accounts. (BDR 53-621)

FISCAL NOTE: Effect on Local Government: No.
Effect on the State: No.

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

AN ACT relating to compensation; authorizing a sole proprietor or
independent contractor to open a portable benefit account
under certain circumstances; authorizing certain
contributions to and disbursements from a portable
benefit account under certain circumstances; setting forth
certain restrictions on the consideration by the Labor
Commissioner of a contribution to a portable benefit
account in determining whether the holder of the account
should be classified as an employee; and providing other
matters properly relating thereto.
Legislative Counsel’s Digest:
Section 2 of this bill authorizes a natural person who is a sole proprietor or an 1
independent contractor to open and contribute to a portable benefit account, under 2
certain circumstances, which may be used for the benefit of the account holder or a 3
spouse, domestic partner, child or other dependent of the account holder. Section 3 4
of this bill authorizes the money in a portable benefit account to be used for the 5
payment of costs for: (1) maintaining health insurance coverage; (2) coverage for or 6
the purchase of prescription drugs; (3) any agreement or arrangement for the 7
payment of medical expenses; (4) other out -of-pocket medical expenses; or (5) 8
other benefits, including income replacement insurance, life insurance or an 9
individual retirement account. 10
Section 4 of this bill authorizes a person who contracts for the services of a sole 11
proprietor or an independent contractor to contribute money to a portable benefit 12
account which is held by the sole proprietor or independent contractor. Section 4 13
authorizes, under certain circumstances, such a contribution to be based on 14
withholding a percentage of payment otherwise owed to the sole proprietor or 15
independent contractor. 16
Existing law requires the Labor Commissioner, the Attorney General and 17
certain state agencies to share certain information relating to suspected or actual 18

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employee misclassification. (NRS 607.217) Existing law also authorizes the Labor 19
Commissioner to impose various administrative penalties against an employer who 20
misclassifies a p erson as an independent contractor or otherwise fails to properly 21
classify a person as an employee. (NRS 608.400, 608.410) Section 4 provides that 22
the fact that a contribution is made to a portable benefit account is, in and of itself, 23
insufficient to support any determination by the Labor Commissioner as to whether 24
or not the holder of the account should be classified as an employee . If the Labor 25
Commissioner considers such a contribution in any proceeding or determination 26
relating to the classification of the holder of the account , section 4 requires the 27
Labor Commissioner to make at least three additional findings of fact in support of 28
any determination that a person was not properly classified. 29

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN
SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1. Chapter 608 of NRS is hereby amended by adding 1
thereto the provisions set forth as sections 2, 3 and 4 of this act. 2
Sec. 2. 1. A natural person who is a resident of this State 3
may open a portable benefit account if the person works as a sole 4
proprietor or an independent contractor during the calendar year 5
in which the person opens the account. 6
2. The holder of a portable benefit account may make 7
contributions to the portable benefit acco unt during any calendar 8
year in which the holder works as a sole proprietor or independent 9
contractor. 10
3. Distributions from a portable benefit account that are 11
made in compliance with the requirements of section 3 of this act 12
may be used for the benefit of the holder of the account or a 13
spouse, domestic partner, child or other dependent of the holder of 14
the account. 15
4. As used in this section, “portable benefit account” means 16
an account that meets the requirements of section 3 of this act. 17
Sec. 3. 1. A portable benefit account must be offered 18
through and administered by a bank, credit union, investment 19
manager or other provider or program that offers services through 20
a bank, credit union or investment manager. 21
2. Distributions from a portable benefit account may only be 22
made for the: 23
(a) Payment of costs relating to: 24
(1) Maintaining health insurance coverage, including, 25
without limitation, premiums, copays, deductibles or coinsurance; 26
(2) Coverage for or the purchase of prescription drugs; 27
(3) Any agreement or arrangement for the payment of 28
medical expenses; or 29
(4) Other out-of-pocket medical expenses; or 30

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(b) Payment of costs relating to or an investment in other 1
benefits, including, without limitation, income replacement 2
insurance, life insurance or an individual retirement account. 3
3. As used in this section: 4
(a) “Bank” has the meaning ascribed to it in NRS 657.016. 5
(b) “Credit union” has the meaning ascribed to it in 6
NRS 672.070. 7
Sec. 4. 1. A person who contracts for the services of a sole 8
proprietor or an independent contractor may contribute money to 9
a portable benefit account which is held by the sole proprietor or 10
independent contractor. 11
2. A contr ibution made pursuant to subsection 1 may be 12
based on withholding a percentage of payment otherwise owed to 13
the sole proprietor or independent contractor, if: 14
(a) In the contract for services or a notice accompanying the 15
contract, an explanation of the op tional withholding is clear, 16
unambiguous and prominently displayed; 17
(b) The contract for services or a notice accompanying the 18
contract requires the sole proprietor or independent contractor to 19
indicate his or her intention to opt in or opt out of the 20
withholding; 21
(c) The sole proprietor or independent contractor expressly 22
agrees in writing to opt in to the withholding; and 23
(d) The sole proprietor or independent contractor has the right 24
to opt out of the withholding at any time without penalty. 25
3. The fact that a contribution is made to a portable benefit 26
account pursuant to this section is, in and of itself, insufficient to 27
support any determination by the Labor Commissioner as to 28
whether or not the holder of the account should be classified as an 29
employee. If the Labor Commissioner considers any such 30
contribution in any proceeding or determination relating to such 31
classification, including, without limitation, pursuant to NRS 32
607.217, 608.0155, 608.400 or 608.410 , the Labor Commissioner 33
shall not make a determination that a person was not properly 34
classified unless the Labor Commissioner makes at least three 35
other findings of fact in support of the determination. 36
4. As used in this section, “portable benefit account” means 37
an account that meets the requirements of section 3 of this act. 38
Sec. 5. This act becomes effective on July 1, 2025. 39

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