HB1027
To Create The Brighter Start Act Of 2025; And To Require The Treasurer Of State To Make A One-time Contribution To Each Existing And Future Arkansas Brighter Future Fund Plan Account.
AI-Generated Summary
The proposed legislation, titled the Brighter Start Act of 2025, mandates a one-time financial contribution from the state to specific educational savings accounts. Specifically, it requires the Treasurer of State to transfer one hundred dollars ($100) to every existing and future Arkansas Brighter Future Fund plan account established for a designated beneficiary. The source of these funds is specified as the General Revenue Fund Account of the State Apportionment Fund. The Treasurer of State is responsible for administering the disbursement and verifying the eligibility of all recipient accounts. This act amends existing Arkansas Code concerning the Brighter Future Fund program. The bill contains no provisions for ongoing appropriations, focusing solely on this initial, one-time deposit into these college savings mechanisms.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill are the current and future beneficiaries of the Arkansas Brighter Future Fund plan accounts, who will each receive a one-time deposit of $100 into their respective accounts. Additionally, families saving for college through this state program will benefit from the increased initial capital in these investment vehicles. The administrative bodies responsible for the Brighter Future Fund accounts and the Treasurer of State’s office will also be directly involved in implementing the required disbursement.
Who Might Suffer?
The group most directly and negatively impacted by this bill, if implemented, is the State of Arkansas's General Revenue Fund Account of the State Apportionment Fund, as it will experience a mandated reduction in funds due to the transfer required to make the $100 contributions. The specific number of accounts is not stated, but the total fiscal cost associated with funding every existing and future account will draw resources from this specific state revenue account. No other entities or individuals are identified in the text as facing direct negative financial impact from this specific legislative action.