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.

Under the act, contributions to these accounts can be made voluntarily by individuals or entities, including hiring parties, and must adhere to specific conditions to ensure clarity and consent from independent contractors. Notably, the act stipulates that contributions to a voluntary portable benefit account cannot be used to determine a worker's employment classification. This legislation seeks to enhance the financial security of independent contractors by providing them with a mechanism to access benefits typically associated with traditional employment.