Kansas 2025-2026 Regular Session Status: Enacted

HB 2602 — Establishing requirements for a portable benefit plan for independent contractors, determining types of contributions to such plans and providing a subtraction modification for Kansas income tax purposes.

Last action — Approved by Governor on Monday, April 6, 2026

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced January 29, 2026. Enacted.

Signed by Governor Laura Kelly (Democratic) on April 09, 2026.

Prognosis

Advancing 50% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

582 added · 570 removed

582 line(s) added, 570 removed.

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As Amended by Senate Committee Session of 2026 HOUSE BILLNo.
HOUSE BILL No.
2602 By Committee on Insurance Requested by Representative L.
2602 AN ACT concerning labor and employment;
Williams 1-29 AN ACT concerning labor and employment;
9 Be it enacted by the Legislature of the State of Kansas:
Be it enacted by the Legislature of the State of Kansas:
(3)(4) "Independent contractor" means an individual that performs services for remuneration for a specific result under the control of the hiring party as to the result of the individual's work only and not as to the means by which such result is accomplished or an individual who performs services for remuneration and is not an employee under the common law rules that may be applicable to determining an employer- employee relationship, as applied for federal employment tax purposes.
(4) "Independent contractor" means an individual that performs services for remuneration for a specific result under the control of the hiring party as to the result of the individual's work only and not as to the means by which such result is accomplished or an individual who performs services for remuneration and is not an employee under the common law rules that may be applicable to determining an employer- employee relationship, as applied for federal employment tax purposes.
(4)(5) "Portable benefit plan" means a benefit plan that is administered by a third-party portable benefit plan provider third party chosen by the independent contractor and assigned to a beneficiary.
(5) "Portable benefit plan" means a benefit plan that is administered by a third party chosen by the independent contractor and assigned to a beneficiary.
(5)(6) "Portable benefit plan provider" means the administrator of a portable benefit account, who may be:
(6) "Portable benefit plan provider" means the administrator of a portable benefit account, who may be:
HB 2602—Am.
(A) Abank;
by SC 2 (A) Abank;
or (D) other person or entity that is determined by the state bank commissioner to meet requirements for administration of a plan under this section a credit union.
or (D) a credit union.
(a) The Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for the taxable year, with the modifications specified in this section.
(a) The Kansas adjusted gross income of an individual means such individual's federal adjusted gross income for HOUSE BILL No.
2602—page 2 the taxable year, with the modifications specified in this section.
(i) Interest income less any related expenses directly incurred in the purchase of state or political subdivision obligations, to the extent that the same is not included in federal adjusted gross income, on obligations of any state or political subdivision thereof, but to the extent that interest income on obligations of this state or a political subdivision thereof issued prior to January 1, 1988, is specifically exempt from income tax under the laws of this state authorizing the issuance of such obligations, it shall be excluded from computation of Kansas adjusted gross income whether or HB 2602—Am.
(i) Interest income less any related expenses directly incurred in the purchase of state or political subdivision obligations, to the extent that the same is not included in federal adjusted gross income, on obligations of any state or political subdivision thereof, but to the extent that interest income on obligations of this state or a political subdivision thereof issued prior to January 1, 1988, is specifically exempt from income tax under the laws of this state authorizing the issuance of such obligations, it shall be excluded from computation of Kansas adjusted gross income whether or not included in federal adjusted gross income.
by SC 3 not included in federal adjusted gross income.
12-5005, 20-2603, 74-4919 and 74-4965, and amendments thereto.
12-5005, 20-2603, 74-4919 and 74- 4965, and amendments thereto.
79- 32,196, and amendments thereto.
79-32,196, and amendments thereto.
(viii) The amount of any costs incurred for improvements to a swine facility, claimed for deduction in determining federal adjusted gross HB 2602—Am.
(viii) The amount of any costs incurred for improvements to a swine facility, claimed for deduction in determining federal adjusted gross income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A.
by SC 4 income, to the extent the same is claimed as the basis for any credit allowed pursuant to K.S.A.
75-643, and amendments thereto, if, at the time of contribution to a family postsecondary education savings account, such amounts were subtracted from the federal adjusted gross income pursuant to subsection (c)(xv) or if such amounts are not already included in the federal adjusted gross income.
75-643, and amendments thereto, if, at the time of contribution HOUSE BILL No.
2602—page 3 to a family postsecondary education savings account, such amounts were subtracted from the federal adjusted gross income pursuant to subsection (c)(xv) or if such amounts are not already included in the federal adjusted gross income.
74- 50,154, and amendments thereto.
74-50,154, and amendments thereto.
79-32,217 through 79-32,220 or 79-32,222, and amendments thereto.
79- 32,217 through 79-32,220 or 79-32,222, and amendments thereto.
79-32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79- 32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79- 32,251 through 79-32,254, and amendments thereto.
79- 32,223 through 79-32,226, 79-32,228 through 79-32,231, 79-32,233 through 79-32,236, 79-32,238 through 79-32,241, 79-32,245 through 79-32,248 or 79-32,251 through 79-32,254, and amendments thereto.
(xvii) The amount of any amortization deduction claimed in HB 2602—Am.
(xvii) The amount of any amortization deduction claimed in determining federal adjusted gross income to the extent the same is claimed for deduction pursuant to K.S.A.
by SC 5 determining federal adjusted gross income to the extent the same is claimed for deduction pursuant to K.S.A.
and (3) farm loss as determined under the federal internal revenue code and reported from schedule F and on line 18 of the taxpayer's form 1040 federal income tax return;
and (3) farm loss as determined under the federal internal revenue code and reported from schedule F and on line of the taxpayer's form 1040 federal income tax return;
(xx) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for self- employment taxes under section 164(f) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer, to the extent the deduction is attributable to income reported on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form 1040 federal income tax return.
HOUSE BILL No.
(xxi) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for pension, profit sharing, and annuity plans of self-employed individuals under section 62(a)(6) of the federal internal revenue code as in effect on January HB 2602—Am.
2602—page 4 (xx) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for self- employment taxes under section 164(f) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer, to the extent the deduction is attributable to income reported on schedule C, E or F and on line 12, 17 or 18 of the taxpayer's form federal income tax return.
by SC 6 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer.
(xxi) For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of any deduction for pension, profit sharing, and annuity plans of self-employed individuals under section 62(a)(6) of the federal internal revenue code as in effect on January 1, 2012, and amendments thereto, in determining the federal adjusted gross income of an individual taxpayer.
40- 2,190, and amendments thereto, to the extent that such taxes and assessments are claimed as an itemized deduction for federal income tax purposes.
40-2,190, and amendments thereto, to the extent that such taxes and assessments are claimed as an itemized deduction for federal income tax purposes.
72-4357, and amendments thereto, and is also claimed as an itemized deduction for federal income tax purposes.
72- 4357, and amendments thereto, and is also claimed as an itemized deduction for federal income tax purposes.
(xxvii) For all taxable years commencing after December 31, 2020, the amount of any interest expense paid or accrued in a previous taxable year but allowed as a deduction pursuant to section 163 of the federal internal revenue code in the current taxable year by reason of the carryforward of disallowed business interest pursuant to section 163(j) of HB 2602—Am.
(xxvii) For all taxable years commencing after December 31, 2020, the amount of any interest expense paid or accrued in a previous taxable year but allowed as a deduction pursuant to section 163 of the federal internal revenue code in the current taxable year by reason of the carryforward of disallowed business interest pursuant to section 163(j) of the federal internal revenue code.
by SC 7 the federal internal revenue code.
(xxviii) For all taxable years beginning after December 31, 2021, the amount of any contributions to, or earnings from, a first-time home buyer savings account if distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A.
(xxviii) For all taxable years beginning after December 31, 2021, the amount of any contributions to, or earnings from, a first-time home HOUSE BILL No.
58-4904, and amendments thereto, or were not held for the minimum length of time required pursuant to K.S.A.
2602—page 5 buyer savings account if distributions from the account were not used to pay for expenses or transactions authorized pursuant to K.S.A.
58- 4904, and amendments thereto, or were not held for the minimum length of time required pursuant to K.S.A.
HB 2602—Am.
(iv) The amount necessary to prevent the taxation under this act of any annuity or other amount of income or gain which was properly included in income or gain and was taxed under the laws of this state for a taxable year prior to the effective date of this act, as amended, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain.
by SC 8 (iv) The amount necessary to prevent the taxation under this act of any annuity or other amount of income or gain which was properly included in income or gain and was taxed under the laws of this state for a taxable year prior to the effective date of this act, as amended, to the taxpayer, or to a decedent by reason of whose death the taxpayer acquired the right to receive the income or gain, or to a trust or estate from which the taxpayer received the income or gain.
(x) (1) For taxable years beginning after December 31, 2021, the amount of any federal credit disallowance under the provisions of 26 U.S.C.
HOUSE BILL No.
2602—page 6 (x) (1) For taxable years beginning after December 31, 2021, the amount of any federal credit disallowance under the provisions of 26 U.S.C.
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Notwithstanding any other provision of law to the contrary, any claim for refund or amended return relating to this subparagraph shall be allowed to be filed on or before April 15, 2025, and no claim for refund or amended return shall be allowed or filed after April 15, 2025.
Notwithstanding any other provision of law to the contrary, any claim for refund or amended return relating to this subparagraph shall be allowed to be filed on or before April 15, 2025, and no claim for refund or amended return shall be allowed or filed afterApril 15, 2025.
(xii) For taxable years beginning after December 31, 1989, amounts HB 2602—Am.
(xii) For taxable years beginning after December 31, 1989, amounts received by retired employees of a board of public utilities as pension and retirement benefits pursuant to K.S.A.
by SC 9 received by retired employees of a board of public utilities as pension and retirement benefits pursuant to K.S.A.
For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or loss reported on schedule E and included on line 17 of the taxpayer's form 1040 federal individual income tax return.
For taxable years beginning after December 31, 2012, and ending before January 1, 2017, the amount of modification under this subsection shall exclude the portion of income or loss reported on schedule E and included on line of the taxpayer's form 1040 federal individual income tax return.
(1) A family postsecondary education savings account established under the Kansas postsecondary education savings program or a qualified tuition program established and maintained by another state or agency or instrumentality thereof pursuant to section 529 of the internal revenue code of 1986, as amended, for the purpose of paying the qualified higher education expenses of a designated beneficiary;
(1) A family postsecondary education savings account established under the Kansas postsecondary education savings program or a qualified tuition program established and maintained by another state or agency or instrumentality thereof pursuant to section of the internal revenue code of 1986, as amended, for the purpose of paying the qualified higher education expenses of a designated beneficiary;
75-643 and 75- 652, and amendments thereto, and the provisions of such sections are hereby incorporated by reference for all purposes thereof.
75-643 and 75-652, and amendments thereto, and the provisions of such sections are hereby incorporated by reference for all purposes thereof.
79-3221, and amendments thereto, of the successive taxable year may be elected by the taxpayer to HB 2602—Am.
79-3221, and amendments thereto, of the successive taxable year may be elected by the taxpayer to apply to the prior taxable year if such election is made at the time of filing the return.
by SC 10 apply to the prior taxable year if such election is made at the time of filing the return.
(xvi) For all taxable years beginning after December 31, 2004, amounts received by taxpayers who are or were members of the armed forces of the United States, including service in the Kansas army and air national guard, as a recruitment, sign up or retention bonus received by such taxpayer as an incentive to join, enlist or remain in the armed services of the United States, including service in the Kansas army and air national guard, and amounts received for repayment of educational or student loans incurred by or obligated to such taxpayer and received by such taxpayer as a result of such taxpayer's service in the armed forces of the United States, including service in the Kansas army and air national guard.
(xvi) For all taxable years beginning after December 31, 2004, HOUSE BILL No.
2602—page 7 amounts received by taxpayers who are or were members of the armed forces of the United States, including service in the Kansas army and air national guard, as a recruitment, sign up or retention bonus received by such taxpayer as an incentive to join, enlist or remain in the armed services of the United States, including service in the Kansas army and air national guard, and amounts received for repayment of educational or student loans incurred by or obligated to such taxpayer and received by such taxpayer as a result of such taxpayer's service in the armed forces of the United States, including service in the Kansas army and air national guard.
(2) net income, not including guaranteed payments as defined in section 707(c) of the federal internal revenue code and as reported to the taxpayer from federal schedule K-1, (form 1065-B), in box 9, code F or as reported to the taxpayer from federal schedule K-1, (form 1065) in box 4, from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual interest in real estate mortgage investment conduits and net farm rental as determined under the federal internal revenue code and reported from schedule E and on line 17 HB 2602—Am.
(2) net income, not including guaranteed payments as defined in section 707(c) of the federal internal revenue code and as reported to the taxpayer from federal schedule K- 1, (form 1065-B), in box 9, code F or as reported to the taxpayer from federal schedule K-1, (form 1065) in box 4, from rental real estate, royalties, partnerships, S corporations, estates, trusts, residual interest in real estate mortgage investment conduits and net farm rental as determined under the federal internal revenue code and reported from schedule E and on line 17 of the taxpayer's form 1040 federal individual income tax return;
by SC 11 of the taxpayer's form 1040 federal individual income tax return;
For purposes of this subsection, references to the federal form 1040 and federal schedule C, schedule E, and schedule F, shall be to such form and schedules as they existed for tax year 2011 and as revised thereafter by the internal revenue service.
For purposes of this subsection, references to the federal form and federal schedule C, schedule E, and schedule F, shall be to such form and schedules as they existed for tax year 2011 and as revised thereafter by the internal revenue service.
The provisions of this paragraph shall take effect on the day the secretary of revenue certifies to the director of the budget that the cost for the department of revenue of modifications to the automated tax system for the purpose of implementing this paragraph will not exceed $20,000.
The provisions of this paragraph shall take effect on the day the secretary of revenue certifies to the director of the budget that the HOUSE BILL No.
2602—page 8 cost for the department of revenue of modifications to the automated tax system for the purpose of implementing this paragraph will not exceed $20,000.
(xxiv) For taxable years beginning after December 31, 2013, and ending before January 1, 2017, the net gain from the sale from Christmas HB 2602—Am.
(xxiv) For taxable years beginning after December 31, 2013, and ending before January 1, 2017, the net gain from the sale from Christmas trees grown in Kansas and held by the taxpayer for six years or more.
by SC 12 trees grown in Kansas and held by the taxpayer for six years or more.
(xxix) For taxable years beginning after December 31, 2017, for an individual taxpayer who carried back federal net operating losses arising in a taxable year beginning after December 31, 2017, and before January 1, 2021, pursuant to section 172(b)(1) of the federal internal revenue code as amended by the coronavirus aid, relief, and economic security act (CARES act), the amount of such federal net operating loss carryback for each applicable year.
(xxix) For taxable years beginning after December 31, 2017, for an individual taxpayer who carried back federal net operating losses arising in a taxable year beginning after December 31, 2017, and before HOUSE BILL No.
If the amount of such federal net operating loss HB 2602—Am.
2602—page 9 January 1, 2021, pursuant to section 172(b)(1) of the federal internal revenue code as amended by the coronavirus aid, relief, and economic security act (CARES act), the amount of such federal net operating loss carryback for each applicable year.
by SC 13 carryback exceeds the taxpayer's Kansas adjusted gross income for such taxable year, the amount thereof that exceeds such Kansas adjusted gross income may be carried forward as a subtraction modification in the following taxable year or years until the total amount of such federal net operating loss carryback has been deducted, except that no such unused amount shall be carried forward for deduction as a subtraction th modification after the 20 taxable year following the taxable year of the net operating loss.
If the amount of such federal net operating loss carryback exceeds the taxpayer's Kansas adjusted gross income for such taxable year, the amount thereof that exceeds such Kansas adjusted gross income may be carried forward as a subtraction modification in the following taxable year or years until the total amount of such federal net operating loss carryback has been deducted, except that no such unused amount shall be carried forward for deduction as a subtraction modification after the 20 taxable year following the taxable year of the net operating loss.
Notwithstanding any other provision of law to the contrary, an extension of time shall be allowed for a claim for refund or amended return for tax years 2018, 2019 or 2020 limited to the application of the provisions of this paragraph and such claim for refund or amended return must be filed on or beforeApril 15, 2025.
Notwithstanding any other provision of law to the contrary, an extension of time shall be allowed for a claim for refund or amended return for tax years 2018, or 2020 limited to the application of the provisions of this paragraph and such claim for refund or amended return must be filed on or beforeApril 15, 2025.
(xxxi) For all taxable years beginning after December 31, 2026, the amount contributed to a portable benefit plan by a hiring party taxpayer pursuant to section 1(c)(1) or (3), and amendments thereto, through the portable benefit plan account pursuant to section 1, and amendments thereto, to the extent that such contributions are not already deducted on the taxpayer's federal income tax return for such taxable year when determining the taxpayer's federal adjusted gross income or are not otherwise subtracted or deducted from the taxpayer's federal adjusted gross income.
(xxxi) For all taxable years beginning after December 31, 2026, the amount contributed to a portable benefit plan by a hiring party taxpayer through the portable benefit plan account pursuant to section 1, and amendments thereto, to the extent that such contributions are not already deducted on the taxpayer's federal income tax return for such taxable year when determining the taxpayer's federal adjusted gross income or are not otherwise subtracted or deducted from the taxpayer's federal adjusted gross income.
Sec.
HOUSE BILL No.
2602—page 10 Sec.
I hereby certify that the above ILL originated in the House, and passed that body H OUSE concurred in SENATE amendments __________________________________________________________________ Speaker of the House.
Chief Clerk of the House.
Passed the SENATE as amended President of the Senate.
Secretary of the Senate.
A PPROVED ______________________________________________________________________________ Governor.
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Action History

  1. Approved by Governor on Monday, April 6, 2026

  2. Enrolled and presented to Governor on Friday, March 27, 2026

  3. Engrossed on Monday, March 23, 2026

  4. Concurred with amendments; Yea 101, Nay 21, Absent 3

  5. Final Action - Passed as amended; Yea 40, Nay 0

  6. Committee of the Whole - Committee Report be adopted

  7. Committee of the Whole - Be passed as amended

  8. Committee Report recommending bill be passed as amended by Senate Committee on Commerce

  9. Withdrawn from Senate Committee on Commerce; Referred to Senate Committee on Commerce

  10. Withdrawn from Senate Committee on Assessment and Taxation; Referred to Senate Committee on Assessment and Taxation

  11. Referred to Senate Committee on Financial Institutions and Insurance

  12. Final Action - Passed; Yea 103, Nay 21, Absent 1

  13. Received and Introduced

  14. Committee of the Whole - Be passed

  15. Committee Report recommending bill be passed by House Committee on Insurance

  16. Introduced

  17. Referred to House Committee on Insurance

Sponsors

  • Committee on Insurance · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 164 not signed on

Sponsors (1)

  • Committee on Insurance

Co-sponsors (0)

None.

Not signed on (164)

164 members have not signed on to this bill.

Show all 164 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation labor health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 2602?
HB 2602 is sponsored by Committee on Insurance.
What is the current status of HB 2602?
This bill has been enacted into law. Introduced January 29, 2026. Enacted.
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