Florida Senate - 2025 SB 1130 By Senator Avila 39-01331-25 20251130__ 1 A bill to be entitled 2 An act relating to portable benefits accounts for 3 independent contractors and sole proprietors; creating 4 part III of ch. 448, F.S., entitled “Voluntary 5 Portable Benefits Act”; creating s. 448.31, F.S.; 6 providing a short title; creating s. 448.32, F.S.; 7 providing definitions; creating s. 448.33, F.S.; 8 authorizing certain parties to make voluntary 9 contributions to portable benefits accounts for 10 independent contractors and sole proprietors; 11 prohibiting contributions to a portable benefits 12 account from being used as a criterion for determining 13 a worker’s employment classification; providing 14 requirements for such contributions; providing an 15 effective date. 16 17 Be It Enacted by the Legislature of the State of Florida: 18 19 Section 1. Part III of chapter 448, Florida Statutes, 20 consisting of ss. 448.31, 448.32, and 448.33, Florida Statutes, 21 is created and entitled the “Voluntary Portable Benefits Act.” 22 Section 2. Section 448.31, Florida Statutes, is created to 23 read: 24 448.31 Short title.—This part may be cited as the 25 “Voluntary Portable Benefits Act.” 26 Section 3. Section 448.32, Florida Statutes, is created to 27 read: 28 448.32 Definitions.—As used in this part, the term: 29 (1) “Hiring party” means a person who hires or enters into 30 a contract with an independent contractor or sole proprietor. 31 (2)(a) “Independent contractor” means a person who meets 32 four of the following criteria: 33 1. Maintains a separate business with his or her own work 34 facility, truck, equipment, materials, or similar 35 accommodations. 36 2. Holds or has applied for a federal employer 37 identification number, unless the person is a sole proprietor 38 who is not required to obtain a federal employer identification 39 number under state or federal regulations. 40 3. Receives compensation for services rendered or work 41 performed and such compensation is paid to a business rather 42 than to an individual. 43 4. Holds one or more bank accounts in the name of the 44 business entity for purposes of paying business expenses or 45 other expenses related to services rendered or work performed 46 for compensation. 47 5. Performs work or is able to perform work for any entity 48 in addition to or besides the hiring party at his or her own 49 election without the necessity of completing an employment 50 application or process. 51 6. Receives compensation for work or services rendered on a 52 competitive-bid basis or completion of a task or a set of tasks 53 as defined by a contractual agreement, unless such contractual 54 agreement expressly states that an employment relationship 55 exists. 56 (b) If a person does not meet four of the criteria pursuant 57 to paragraph (a), a person may still be presumed to be an 58 independent contractor and not an employee based on full 59 consideration of the nature of the person’s situation with 60 regard to whether the person meets any of the following 61 conditions: 62 1. Performs or agrees to perform specific services or work 63 for a specific amount of money and controls the means of 64 performing the services or work. 65 2. Incurs the principal expenses related to the service or 66 work that he or she performs or agrees to perform. 67 3. Is responsible for the satisfactory completion of the 68 work or services that he or she performs or agrees to perform. 69 4. Receives compensation for work or services performed for 70 a commission or on a per-job basis and not on any other basis. 71 5. May realize a profit or suffer a loss in connection with 72 performing work or services. 73 6. Has continuing or recurring business liabilities or 74 obligations. 75 7. Has success or failure in the person’s business which 76 depends on the relationship of business receipts to 77 expenditures. 78 (3)(a) “Portable benefits account” means an account that 79 is: 80 1. Opened by an independent contractor or a sole proprietor 81 to fund the purchase of one or more benefit plans and is 82 administered by a third-party portable benefits account provider 83 chosen by the independent contractor or the sole proprietor; and 84 2. Assigned to a beneficiary of one or more benefit plans 85 rather than to a hiring party. 86 (b) As used in paragraph (a), the term “benefit plan” 87 includes, but is not limited to, the following products: 88 1. Health insurance. 89 2. Income replacement insurance. 90 3. Life insurance. 91 4. Retirement benefits. 92 (4) “Portable benefits account provider” means the 93 administrator of a portable benefits account and includes: 94 (a) A bank, as defined in s. 220.62(1). 95 (b) An investment management firm. 96 (c) A technology provider or program manager that offers 97 services through a bank or investment management firm. 98 (d) Any other person that demonstrates to the satisfaction 99 of the Financial Services Commission that the manner in which 100 the person will administer the portable benefits account will be 101 consistent with the portable benefits account requirements under 102 s. 448.33. 103 (5) “Sole proprietor” has the same meaning as in s. 440.02. 104 Section 4. Section 448.33, Florida Statutes, is created to 105 read: 106 448.33 Voluntary contributions to portable benefits 107 accounts for independent contractors and sole proprietors.— 108 (1) Any person or entity, including an independent 109 contractor; a sole proprietor; a hiring party, whether a public 110 or private entity; or an Internet-based or application-based 111 company, may voluntarily contribute funds to a portable benefits 112 account for an independent contractor or sole proprietor. 113 (2)(a) Contributions to a portable benefits account may not 114 be used as a criterion for determining a worker’s employment 115 classification. 116 (b) Contributions to a portable benefits account may be 117 made using: 118 1. The funds of the hiring party; or 119 2. A percentage of funds withheld from compensation owed to 120 the independent contractor or sole proprietor if all the 121 following conditions are met: 122 a. The withholdings are voluntary and expressly agreed to 123 in writing, and the agreement is written in clear and 124 unambiguous language and prominently displayed in the work 125 contract or a separate notice. 126 b. The withholdings require the independent contractor or 127 sole proprietor to opt in, and the independent contractor or 128 sole proprietor may choose to opt out of the withholdings at any 129 time. 130 Section 5. This act shall take effect July 1, 2025.