HB 494 - SB 1377
FISCAL NOTE
Fiscal Review Committee
Tennessee General Assembly
February 20, 2025
Fiscal Analyst: Rebecca Chandler | Email: rebecca.chandler@capitol.tn.gov | Phone: 615-741-2564
HB 494 - SB 1377
SUMMARY OF BILL: Enacts the Voluntary Portable Benefit Plan Act.
Authorizes public or private entities to voluntarily contribute funds to portable benefit plans (PBPs)
for independent contractors. Permits contributions to be made either by hiring parties or through
voluntary withholdings from independent contractors’ compensation. Prohibits contributions from
being used to determine a worker’s employment classification.
Requires any withholdings to be explicitly stated in a clear, unambiguous, and prominently displayed
written agreement, be voluntary, and allow contractors to opt in or out at any time.
Expands the definition of compensation for marketplace contractors to include contributions to
portable benefit accounts, allowing such contributions without impacting their classification as
independent contractors.
FISCAL IMPACT:
NOT SIGNIFICANT
Assumptions:
• The number of public entities that may opt in as well as the number of independent
contractors employed by state or local entities who would choose to opt in to PBPs in
unknown.
• While the proposed legislation authorizes public entities to contribute to PBPs,
participation is voluntary. Any impact to state or local government is estimated to be not
significant.
IMPACT TO COMMERCE:
NOT SIGNIFICANT
Assumptions:
• The total number of independent contractors in Tennessee is unknown, nor is the number
that would choose to opt in to PBPs.
HB 494 - SB 1377 2
• While businesses are permitted to contribute to PBPs, participation is voluntary. Any
impact to business expenditures is estimated to be not significant.
CERTIFICATION:
The information contained herein is true and correct to the best of my knowledge.
Bojan Savic, Executive Director