The proposed legislation, titled the "Voluntary Portable Benefit Account Act," aims to establish a framework for independent contractors in Arkansas 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," and "voluntary portable benefit account." It allows independent contractors to open accounts to fund various benefit plans, including health insurance, income replacement insurance, life insurance, and retirement benefits. The act also outlines the roles of account providers, which can include banks, investment management firms, and other entities that meet specific criteria set by the Bank Commissioner.

Additionally, the bill stipulates that contributions to these accounts can be made voluntarily by individuals or entities, including hiring parties, and establishes guidelines for how these contributions can be withheld from an independent contractor's compensation. It emphasizes that such withholdings must be agreed upon in writing, clearly communicated, and voluntary, allowing independent contractors the option to opt out at any time. Overall, the act seeks to enhance the benefits available to independent contractors while ensuring their employment classification remains unaffected by contributions to these accounts.