Arkansas 2025 Regular Session

Arkansas Senate Bill SB235 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	ANS091 02/14/2025 9:47:30 AM ANS091
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 SENATE BILL 235 3
6	6	4
7	7	By: Senator J. Boyd 5
8	8	By: Representative Lundstrum 6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO CREATE THE VOLUNTARY PORTABLE BENEFIT 9
12	12	ACCOUNT ACT; AND FOR OTHER PURPOSES. 10
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14	14	12
15	15	Subtitle 13
16	16	TO CREATE THE VOLUNTARY PORTABLE BENEFIT 14
17	17	ACCOUNT ACT. 15
18	18	16
19	19	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17
20	20	18
21	21	SECTION 1. Arkansas Code Title 11, Chapter 4, is amended to add an 19
22	22	additional subchapter to read as follows: 20
23	23	21
24	24	Subchapter 7 — Voluntary Portable Benefit Account Act 22
25	25	23
26	26	11-4-701. Title. 24
27	27	This subchapter shall be known and may be cited as the "Voluntary 25
28	28	Portable Benefit Account Act". 26
29	29	27
30	30	11-4-702. Definitions. 28
31	31	As used in this subchapter: 29
32	32	(1)(A) "Bank" means a state bank or a national bank or an out -30
33	33	of-state state-chartered bank that has received a certificate of authority 31
34	34	under § 23-48-1001. 32
35	35	(B) "Bank" shall also include any foreign bank organized 33
36	36	under the laws of a territory of the United States, the Commonwealth of 34
37	37	Puerto Rico, Guam, American Samoa, or the United States Virgin Islands, the 35
38	38	deposits of which are insured by the Federal Deposit Insurance Corporation; 36 SB235
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41	41	(2) "Hiring party" means a person who hires or enters into a 1
42	42	contract with an independent contractor; 2
43	43	(3)(A) "Voluntary portable benefit account" means an account 3
44	44	that is: 4
45	45	(i) Opened by an independent contractor to fund the 5
46	46	purchase of one (1) or more benefit plans; 6
47	47	(ii) Administered by a voluntary portable benefit 7
48	48	account provider; and 8
49	49	(iii) Assigned to a beneficiary of one (1) or more 9
50	50	benefit plans rather than to an employer or hiring party. 10
51	51	(B) "Voluntary portable benefit plan" includes without 11
52	52	limitation: 12
53	53	(i) Health insurance; 13
54	54	(ii) Income replacement insurance; 14
55	55	(iii) Life insurance; and 15
56	56	(iv) Retirement benefits; and 16
57	57	(4) "Voluntary portable benefit account provider" means the 17
58	58	administrator of a voluntary portable benefit account and includes: 18
59	59	(A) A bank; 19
60	60	(B) An investment management firm; 20
61	61	(C) A technology provider or program manager that offers 21
62	62	services through a bank or investment management firm; or 22
63	63	(D) Any other person who demonstrates to the satisfaction 23
64	64	of the Bank Commissioner that the manner in which the bank or person will 24
65	65	administer the voluntary portable benefit account will be consistent with the 25
66	66	voluntary portable benefit account requirements under this subchapter. 26
67	67	27
68	68	11-4-703. Voluntary portable benefit account. 28
69	69	(a)(1) A person or entity, including an independent contractor or an 29
70	70	internet- or application-based company, may voluntarily contribute funds to a 30
71	71	voluntary portable benefit account for an independent contractor. 31
72	72	(2) Employment status as an independent contractor shall be 32
73	73	determined by the employment status factors set out in the Empower 33
74	74	Independent Contractors Act of 2019, § 11 -1-201 et seq. 34
75	75	(3) A contribution to a voluntary portable benefit account shall 35
76	76	not be used as a criterion for determining a worker’s employment 36 SB235
77	77
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79	79	classification. 1
80	80	(b) A contribution to a voluntary portable benefit account may be made 2
81	81	using the funds of the hiring party or a percentage of funds withheld from 3
82	82	compensation owed to an independent contractor if: 4
83	83	(1) The withholding of compensation is expressly agreed to in 5
84	84	writing; 6
85	85	(2) The written agreement is clear, unambiguous, and prominently 7
86	86	displayed either in a work contract or a separate notice; 8
87	87	(3) The withholdings are voluntary and require an independent 9
88	88	contractor to opt in; and 10
89	89	(4) An independent contractor may choose to opt out of the 11
90	90	agreement in subdivision (b)(2) of this section at any time. 12
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