An act TO CREATE THE VOLUNTARY PORTABLE BENEFIT 10 ACCOUNT ACT, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                    A Bill
2 95th General Assembly

3 Regular Session, 2025                                            SENATE BILL 235

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5 By: Senator J. Boyd

6 By: Representative Lundstrum

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8                               For An Act To Be Entitled

9   AN ACT TO CREATE THE VOLUNTARY PORTABLE BENEFIT

10  ACCOUNT ACT; AND FOR OTHER PURPOSES.

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12

13                                     Subtitle

14                       TO CREATE THE VOLUNTARY PORTABLE BENEFIT

15                       ACCOUNT ACT.

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17 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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19  SECTION 1. Arkansas Code Title 11, Chapter 4, is amended to add an

20 additional subchapter to read as follows:

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22  Subchapter 7 -- Voluntary Portable Benefit Account Act

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24  11-4-701. Title.

25  This subchapter shall be known and may be cited as the "Voluntary

26 Portable Benefit Account Act".

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28  11-4-702. Definitions.

29  As used in this subchapter:

30  (1)(A) "Bank" means a state bank or a national bank or an out-

31 of-state state-chartered bank that has received a certificate of authority

32 under � 23-48-1001.

33                       (B) "Bank" shall also include any foreign bank organized

34 under the laws of a territory of the United States, the Commonwealth of

35 Puerto Rico, Guam, American Samoa, or the United States Virgin Islands, the

36 deposits of which are insured by the Federal Deposit Insurance Corporation;

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1               (2) "Hiring party" means a person who hires or enters into a

2 contract with an independent contractor;

3               (3)(A) "Voluntary portable benefit account" means an account

4 that is:

5                        (i) Opened by an independent contractor to fund the

6 purchase of one (1) or more benefit plans;

7                        (ii) Administered by a voluntary portable benefit

8 account provider; and

9                        (iii) Assigned to a beneficiary of one (1) or more

10 benefit plans rather than to an employer or hiring party.

11              (B) "Voluntary portable benefit plan" includes without

12 limitation:

13                       (i) Health insurance;

14                       (ii) Income replacement insurance;

15                       (iii) Life insurance; and

16                       (iv) Retirement benefits; and

17              (4) "Voluntary portable benefit account provider" means the

18 administrator of a voluntary portable benefit account and includes:

19              (A) A bank;

20              (B) An investment management firm;

21              (C) A technology provider or program manager that offers

22 services through a bank or investment management firm; or

23              (D) Any other person who demonstrates to the satisfaction

24 of the Bank Commissioner that the manner in which the bank or person will

25 administer the voluntary portable benefit account will be consistent with the

26 voluntary portable benefit account requirements under this subchapter.

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28  11-4-703. Voluntary portable benefit account.

29  (a)(1) A person or entity, including an independent contractor or an

30 internet- or application-based company, may voluntarily contribute funds to a

31 voluntary portable benefit account for an independent contractor.

32              (2) Employment status as an independent contractor shall be

33 determined by the employment status factors set out in the Empower

34 Independent Contractors Act of 2019, � 11-1-201 et seq.

35              (3) A contribution to a voluntary portable benefit account shall

36 not be used as a criterion for determining a worker's employment

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1 classification.

2   (b) A contribution to a voluntary portable benefit account may be made

3 using the funds of the hiring party or a percentage of funds withheld from

4 compensation owed to an independent contractor if:

5           (1) The withholding of compensation is expressly agreed to in

6 writing;

7           (2) The written agreement is clear, unambiguous, and prominently

8 displayed either in a work contract or a separate notice;

9           (3) The withholdings are voluntary and require an independent

10 contractor to opt in; and

11          (4) An independent contractor may choose to opt out of the

12 agreement in subdivision (b)(2) of this section at any time.

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