This bill is a voluntary benefit program for independent contractors in Nevada.

AB312 is brought in response to economic shutdowns over the last year in Nevada and the federal government being relied upon to be the sole solver of the problems initiated at the state level.

Since there is an expiration date of September on the federal PUA Program for independent contractors, yet no expiration date on the State Emergency, nor has the legislature undertaken discussions of changes to the current status quo and in light of no alternatives being offered to help those impacted, this legislation is presented by Independent Labor Alliance as self-help for the self-employed.

This program allows contractors and freelancers to opt into monthly contributions in the amount they choose and access those deposits in times of need, such as a loss of contract.

This bill is viewed as an “access point” for those in our state that may not have the ability to access a bank account, or other financial products or policies as we have heard recently some state officials feel accessing an ID is a barrier. This is also for Nevada’s self employed that like most Americans, otherwise struggle to put away savings for unforeseen interruptions to their usual course of business, or those savings get wiped out from a high summer utility bill or an accidental overdraft fee.

This program uses proof that the majority of participant’s income was earned by independent contracting, which can be evidenced by tax filings or by other sufficient means.

It is a dollar in- dollar out program where taxpayer funds are not requested, except for operational resources used by state agencies to run the program, which may be DETR, but if cost-effective program could be placed under the State Treasury. There is nothing prohibitive that the state could not choose to make an allocation, potentially from Covid relief funds from the federal government, to kick start the potential software changes required. Donations or gifts can be made to the fund. All of the money must stay in the fund (the state can’t re-allocate to the general or other fund) but they can invest the fund (as they do with others) to offset operational costs.

Participants can discontinue participation at any time and get a refund for every dollar they put in, for any reason.

They may do so if they find a different financial product or  policy is available to them, this program could help some Nevadans to save to afford the premiums to obtain such a product or policy. If they choose another line of work they can take the funds and move them to a 401k or any type of investment they choose. Again, this is why it is an “access point”, helping them with a hand up not a hand out.

Since the state has enforced economic restriction, has not developed an alternative solution to federal funding for freelancers and contractors and we recognize going into business for yourself requires fiscal responsibility, we do wish to help tens of thousands Nevadans who would benefit from simple savings, positive economic habits and thinking about what products, investments or policies would be best for them going forward.

We stress the voluntary nature of this program because of the diversity of occupations of this workforce, one size does not fit all. Please spread the word that we are bringing both a symbolic bill as to problems the state creates but does not address and the empowerment of our freelance and independent contractor

population to have access to a place to save for unforeseen situations that they might not otherwise have available to them. The LEAST we can do,is help these Nevadans to help themselves while there’s nothing prohibitive, so that the state or any donor could give or allocate more funding to help people who are trying to save, prepare themselves for economic changes that they cannot control and  practice positive personal fiscal habits.

Brittany Sheehan, Executive Director, Independent Labor Alliance