Adopted R 576
Alabama2026Enacted
HB361
Alabama Living Donor Protection Act
Last scannedAug 24, 2026, 9:06 AM
In one sentence
This law stops insurance companies from treating living organ donors unfairly, gives paid time off to public workers who donate organs or bone marrow, and offers tax credits to private employers who provide similar leave.
What it does
- Prohibits insurers from denying coverage, raising prices, canceling policies, or requiring people not to donate as a condition for renewal solely because they are living organ donors without additional actuarial risk.
- Allows state employees with at least one year of service to receive up to 30 days of paid leave for donating an organ and seven days for bone marrow donation upon written request and approval.
- Grants county, municipal, and other public workers the same paid leave benefits as state employees if they have worked there for at least one year.
- Protects public employees from being fired, disciplined, or treated poorly for asking to use this special leave time.
- Allows private employers to claim a tax credit equal to 25% of wages paid during organ donation leave, up to $2,000 per employee.
Who it affects
- Insurance companies that sell life, disability, or long-term care policies in Alabama.
- State government employees who have worked for at least one year.
- County and city workers with at least one year of service.
- Other public employees not covered by state or local rules but funded by the State General Fund or Education Trust Fund.
Limits and unknowns
- The tax credit for private employers only applies to tax years between January 1, 2027, and December 31, 2031.
- Private employers must create a written policy that gives at least 15 days of paid leave without cutting pay or using up other vacation time to qualify for the credit.
- The law does not require private companies to offer this leave; it only offers them money if they choose to do so.
Plain language
Terms to know
- Living Organ Donor
- A person who gives all or part of an organ while they are still alive.
- Actuarial Risk
- The chance that a health event will happen, which insurers use to set prices; this law says donor status alone does not increase this risk unless there is additional medical evidence.
- Tax Credit
- An amount of money the government lets an employer subtract from their taxes owed as a reward for following specific rules regarding paid leave.
Official record
Sources
Official summary
This act is the Alabama Living Donor Protection Act. This act: (1) prohibits insurers from declining or limiting coverage of an individual solely because he or she is a living organ donor, requiring an individual to refrain from donating an organ as a condition for policy renewal, or otherwise discriminating against living organ donors; (2) authorizes state employees to receive up to 30 days leave when donating an organ and up to seven days leave when donating bone marrow upon submitting a written request accompanied by a doctor's verification and approval of the State Director of Personnel; (3) authorizes county and municipal employees and other public employees to receive up to 30 days leave when donating an organ and up to seven days leave when donating bone marrow upon submitting a written request accompanied by a doctor's verification and approval of the appointing authority, with protection from job-related retaliation or discrimination; and (4) beginning January 1, 2027 and ending December 31, 2031, authorizes private sector employers to claim a tax credit equal to 25 percent of the gross compensation paid to an employee for the period of leave taken, not exceeding $2,000, for affording employees up to 30 days of paid leave to make an organ donation, subject to the employer adopting a specific formal policy and not reducing pay.
Official activity
Bill history
- EnactedHouse
- Delivered to GovernorHouse
- Signature RequestedSenate
- EnrolledHouse
- Ready to EnrollHouse
- Motion to Read a Third Time and Pass - Adopted Roll Call 1270 (Yeas 30, Nays 0)Senate
- Read for the Second Time and placed on the CalendarSenate
- Reported Out of Committee Second HouseSenate
- Pending Committee Action in Second HouseSenate
- Read for the first time and referred to the Senate Committee on Banking and InsuranceSenate
- Motion to Read a Third Time and Pass as Amended - Adopted Roll Call 577 (Yeas 104, Nays 0)House
- Motion to Adopt - Adopted Roll Call 576 (Yeas 104, Nays 0)House
- Third Reading in House of Origin (Yeas 104, Nays 0)House
- EngrossedHouse
- Ways and Means Education Engrossed Substitute OfferedHouse
- Read for the Second Time and placed on the CalendarHouse
- Reported Out of Committee House of OriginHouse
- Ways and Means Education 1st AmendmentHouse
- Insurance 1st SubstituteHouse
- Re-referred to Committee in House of OriginHouse
Changes
Amendments
3 stored
Ways and Means Education 1st Amendment Ways and Means Education
Insurance 1st Substitute Ways and Means Education