The proposed legislation introduces a new chapter, Chapter 28, to Title 44 of the Idaho Code, titled the "Portable Benefit Plan Act." This act establishes definitions for key terms such as "independent contractor," "portable benefit account," and "hiring party," and outlines the administration of portable benefit plans. It allows any person or entity to voluntarily contribute to a portable benefit account for independent contractors without these contributions being interpreted as evidence of an employer-employee relationship. The act also specifies that contributions can be made from the hiring party's funds or through a percentage of compensation withheld from the independent contractor, provided certain conditions are met.

Additionally, the bill addresses tax implications, allowing hiring parties to deduct contributions to portable benefit accounts as business expenses and enabling independent contractors to exclude these contributions from their taxable income. The act is set to take effect on July 1, 2026, following the declaration of an emergency.