HB 4009: Relating to the creation of the Portable Benefit Account Act - West Virginia

hb4009 hfa mcgeehan 3-14 _1 adopted.htm → hb4009 sfat azinger _1 3-14 adopted.htm · 3 edits

MINOR

The bill's procedural status changed from a House version to a Senate version, indicating it has been amended by the Senate. The most significant substantive change is the addition of a detailed title that explicitly defines the bill's purpose: creating voluntary portable benefit accounts for workers, establishing new code sections for these accounts, and modifying tax laws to support them. This clarifies that the legislation aims to allow employees to take their retirement savings with them when changing jobs.

Scope change

The bill's scope is now explicitly defined to include the creation of portable benefit accounts, the addition of new sections in the West Virginia Code, and specific modifications to state tax laws regarding federal adjusted gross income.

TECHNICAL

The House Delegate's motion to concur with a Senate amendment and make further changes was removed, as the document is now the Senate version of the bill.

SCOPE

A comprehensive title was added, specifying that the bill creates voluntary portable benefit accounts, adds new sections to the state code, and modifies tax laws.

DEFINITION

The new title introduces the concept of 'portable benefit accounts' as a central mechanism for the legislation.

hb4009 s bnk am _1 3-4 adopted.htm → hb4009 hfa mcgeehan 3-14 _1 adopted.htm · 1 edit

MINOR

The bill was amended to concur with a Senate version but includes a specific instruction to remove the definition of 'Unemployment insurance' from the list of benefits covered by the portable benefits plan. This change likely aims to prevent the portable benefits plan from being confused with or replacing the state's existing unemployment compensation system, ensuring the new plan focuses on other types of coverage like health and retirement.

Scope change

The scope of benefits covered by the new portable benefits plan was narrowed by explicitly removing unemployment insurance from the list of allowable benefits.

DEFINITION

The definition of 'Unemployment insurance' was deleted from the list of benefits included in a 'Portable benefit plan'. This prevents the new plan from covering unemployment benefits, which are handled separately under state law.

Committee Substitute → hb4009 s bnk am _1 3-4 adopted.htm · 4 edits

MODERATE

The bill was amended by the Banking and Insurance Committee to shift the administration of portable benefit accounts from the Division of Insurance to the Division of Labor. This change reclassifies the program from an insurance-based system to a labor-based one, allowing a wider range of financial institutions and technology providers to administer the accounts.

Scope change

The scope of the bill expanded to include banks, investment firms, and technology providers as eligible administrators, whereas the original version was limited to insurance administrators.

ENFORCEMENT

Authority to create and enforce rules for the program was transferred from the Commissioner of Insurance to the Commissioner of Labor.

DEFINITION

The definition of a 'portable benefit plan provider' was expanded to explicitly include banks, investment management firms, and technology providers.

REQUIREMENT

The list of covered benefits was updated to replace 'income replacement insurance' with 'unemployment insurance' and added 'retirement benefits' to the list of allowable plan components.

TECHNICAL

Cross-references to the code were updated to reflect the new location of the article in Chapter 21 (Labor) instead of Chapter 33 (Insurance).

Enrolled Committee Substitute → Committee Substitute · 5 edits

MODERATE

The bill was revised to move from a Labor Department-led program to one administered by the Insurance Division, changing the regulatory oversight and rule-making authority. Additionally, the bill's title was updated to reflect its origin in the Finance Committee, and the section numbers for the new portable benefit articles were adjusted to Chapter 33, Article 64. Minor wording tweaks were made to clarify that hiring parties must be 'persons' rather than 'entities' and to streamline the opt-out language for workers.

Scope change

The scope of administrative oversight shifted from the Division of Labor to the Division of Insurance, altering which state agency is responsible for regulating portable benefit plans and issuing related rules.

ENFORCEMENT

Regulatory authority was transferred from the Commissioner of Labor to the Commissioner of the Division of Insurance, including the power to promulgate rules.

DEFINITION

The definition of a 'hiring party' was narrowed to specifically mean a 'person' rather than a broader 'person or entity'.

REQUIREMENT

The opt-out language for independent contractors was simplified to remove the phrase 'for such withholdings'.

TECHNICAL

The bill's title was updated to include its committee origin, and the section numbers for the new articles were changed from Chapter 21, Article 18 to Chapter 33, Article 64.

Minor capitalization and punctuation adjustments were made to the legislative findings and section headers.

Engrossed Committee Substitute → Enrolled Committee Substitute · 4 edits · Apr 1, 2026

MODERATE

The bill was finalized as an 'Enrolled' version, changing its status from 'Engrossed' and updating the effective date to 90 days after passage. The text was updated to reflect that the bill now includes legislative findings and specific definitions for who can administer portable benefit accounts, such as banks and investment firms. The administrative authority shifted from the Division of Insurance to the Division of Labor, and the bill was reclassified from a general 'Voluntary Portable Benefits Plan Act' to specifically cover 'voluntary portable benefit accounts'.

Scope change

The bill's scope was narrowed and clarified by changing the title from a broad 'Plan Act' to specifically cover 'accounts', and the administrative oversight was transferred from the Insurance Commissioner to the Commissioner of Labor.

TIMELINE

The effective date was updated to 90 days from passage (June 12, 2026), replacing the previous 'Engrossed' status.

DEFINITION

New definitions were added to specify that portable benefit plan providers can include banks, investment management firms, technology providers, or other entities approved by the Division of Labor.

ENFORCEMENT

Administrative authority was transferred from the Division of Insurance to the Division of Labor, and the rule-making process was adjusted to allow for emergency rules.

SCOPE

The bill title and section references were updated to refer to 'voluntary portable benefit accounts' instead of 'plans', and the chapter number changed from Insurance (Chapter 33) to Labor (Chapter 21).

Introduced Version → Engrossed Committee Substitute · 5 edits · Mar 14, 2026

MODERATE

The bill was significantly rewritten to shift from creating a standalone article to integrating portable benefit rules into the state's tax and insurance codes. The new version defines portable benefit plans more broadly to include disability insurance and clarifies that contributions cannot be used to reclassify independent contractors as employees. It also establishes specific tax deductions for both contributions and receipts of these funds.

Scope change

The bill's scope expanded from a standalone article to include specific modifications to the Personal Income Tax and Corporate Net Income Tax articles, and it was moved under the Insurance Division for rulemaking.

DEFINITION

Definitions were updated to include disability insurance and clarify that 'independent contractor' status is determined by existing employment laws, not by the existence of the benefit account.

FISCAL

New tax provisions allow West Virginia taxpayers to deduct contributions to voluntary portable benefit plans from their federal adjusted gross income.

REQUIREMENT

Strict rules were added requiring written, voluntary opt-in agreements for any withholding of wages to fund these accounts.

ENFORCEMENT

The bill explicitly states that using these accounts cannot be used to prove an employer-employee relationship, protecting independent contractor status.

TIMELINE

The new tax benefits apply to taxable years beginning on or after January 1, 2026.

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