The proposed legislation, titled the "Voluntary Portable Benefit Account Act," aims to establish a framework for independent contractors to create and manage voluntary portable benefit accounts. This new subchapter added to Arkansas Code Title 11, Chapter 4, defines key terms such as "bank," "hiring party," "voluntary portable benefit account," and "voluntary portable benefit account provider." The act allows independent contractors or entities to voluntarily contribute funds to these accounts, which can be used to purchase various benefit plans, including health insurance, income replacement insurance, life insurance, and retirement benefits.

Additionally, the bill outlines the conditions under which contributions can be made to these accounts, emphasizing that such contributions should not affect the employment classification of the independent contractor. Contributions can be made using funds from the hiring party or through a percentage of withheld compensation, provided there is a clear written agreement that is prominently displayed and allows the contractor to opt in or out. This legislation seeks to enhance the benefits available to independent contractors, providing them with more flexibility and security in managing their benefits.