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SB 422

Relating to: designating the Greg Quinn and Larry Millard Memorial Bridge.

2025-2026 Regular Session Introduced by John Jagler and 2 co-sponsors

SB 422 allows nonprofits to contribute to Arkansas Brighter Future Fund accounts, boosting educational savings for students while giving parents control over contributions.

Presented to the Governor on 12-4-2025
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Bill Summary · SB 422

Summary of SB 422: Arkansas Brighter Future Fund Plan Amendment

Bill Number: SB 422
Title: To Allow Nonprofit Organizations to Contribute to a New or Existing Arkansas Brighter Future Fund Plan Account; and to Require the Treasurer of State to Facilitate Contributions by a Nonprofit Organization.
Status: Now Act 615
Introduced: March 11, 2025
Sponsors: Senator C. Tucker and Representative K. Brown

Purpose and Intent

The primary purpose of SB 422 is to amend the Arkansas Brighter Future Fund Plan Act, allowing nonprofit organizations to contribute to accounts established under this plan. This legislation aims to enhance educational savings opportunities for beneficiaries by enabling charitable organizations to support these accounts financially.

Key Provisions

  • Eligibility for Contributions:

    • Nonprofit organizations, defined as charitable entities exempt from taxation under 26 U.S.C. § 501(c)(3), are now permitted to contribute to existing or new Arkansas Brighter Future Fund Plan accounts.

  • Account Establishment:

    • Nonprofits can open accounts for either a designated beneficiary or an identifiable group of beneficiaries.
    • Parents or guardians of designated beneficiaries must be given the option to voluntarily decline the account and any contributions made by the nonprofit.

  • Treasurer of State's Role:

    • The Treasurer of State is required to establish a system to collect necessary information (e.g., Social Security numbers and dates of birth) for account establishment while ensuring the confidentiality of this information.

  • Definitions Updated:

    • The bill updates definitions within the Arkansas Brighter Future Fund Plan Act, including the definitions of "account owner" and "contributor" to include nonprofit organizations.

Impact

  • Beneficiaries:

    • The legislation primarily affects students and families who can benefit from increased contributions to their educational savings accounts, potentially enhancing their ability to cover education-related expenses.

  • Nonprofit Organizations:

    • Nonprofits will have the opportunity to support educational initiatives directly, thereby increasing their engagement in community development and educational support.

  • Parents and Guardians:

    • Parents and guardians retain control over whether to accept contributions made by nonprofits, ensuring they can manage their children's educational savings plans according to their preferences.

Procedural Aspects

  • Implementation Timeline:

    • The bill allows adequate time for implementation, including educating relevant department employees and the tax community about the changes.

  • Fiscal Impact:

    • The fiscal impact statement indicates that there will be no additional costs to the state or taxpayers as a result of this legislation.

Legislative Actions

  • March 11, 2025: Filed and read for the first time.
  • April 8, 2025: Ordered enrolled and passed through both chambers.
  • April 14, 2025: Notification that SB 422 is now Act 615.

This summary provides a comprehensive overview of SB 422, highlighting its purpose, key provisions, and potential impacts on Arkansas's educational savings landscape.

Compiled from official sources — confirm details with the bill’s official record.

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