1     
PORTABLE BENEFIT PLAN

2     
2023 GENERAL SESSION

3     
STATE OF UTAH

4     
Chief Sponsor: John D. Johnson

5     
House Sponsor: ____________

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7     LONG TITLE
8     General Description:
9          This bill enacts provisions related to portable benefit plans.
10     Highlighted Provisions:
11          This bill:
12          ▸     provides that government entities or private entities may offer a portable benefit
13     plan;
14          ▸     requires contributions to a portable benefit plan be voluntary;
15          ▸     provides that contributions to a portable benefit plan:
16               •     are not evidence of an employment relationship or employer liability; and
17               •     may not be used as criteria in determining employment classifications; and
18          ▸     defines terms.
19     Money Appropriated in this Bill:
20          None
21     Other Special Clauses:
22          None
23     Utah Code Sections Affected:
24     ENACTS:
25          34-57-101, Utah Code Annotated 1953
26          34-57-102, Utah Code Annotated 1953
27     


28     Be it enacted by the Legislature of the state of Utah:
29          Section 1. Section 34-57-101 is enacted to read:
30     
CHAPTER 57. PORTABLE BENEFIT PLAN

31     
Part 1. General Provisions

32          34-57-101. Definitions.
33          As used in this chapter:
34          (1) "Hiring party" means a person who hires or enters into a contract with an
35     independent contractor.
36          (2) "Independent contractor" means the same as that term is defined in Section
37     34A-2-103.
38          (3) "Portable benefit plan" means a group coverage benefit option offered through a
39     fund, account, or alternative mechanism that:
40          (a) provides portable benefits, including:
41          (i) health insurance coverage;
42          (ii) unemployment insurance coverage; or
43          (iii) disability pay coverage; and
44          (b) is assigned to an individual beneficiary and is not associated with a specific
45     employer or hiring party.
46          Section 2. Section 34-57-102 is enacted to read:
47          34-57-102. Administration -- Assignment of benefits -- Portability.
48          (1) A governmental entity or private entity may offer a portable benefit plan.
49          (2) Contributions to a portable benefit plan:
50          (a) shall be voluntary; and
51          (b) may not be used as a criterion for determining a person's employment classification.
52          (3) If an Internet or application-based company contributes to a portable benefit plan
53     for the benefit of an individual beneficiary:
54          (a) the contribution is not evidence of employer liability; and
55          (b) a court may not construe the contribution as an element of an employment
56     relationship for purposes of:
57          (i) Title 34A, Chapter 2, Workers' Compensation Act; or
58          (ii) Title 35A, Chapter 4, Employment Security Act.