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HB361 ENROLLED
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HB361
SLEL378-3
By Representatives Daniels, Rigsby, Travis, Lands, Hendrix,
Warren, Ledbetter, Morris, Clarke, Forte, Lawrence, Chestnut,
Jones, Garrett, Lovvorn, Moore (M), Sellers, Shaw, DuBose,
Hulsey, Kiel, Shaver, Wilcox, Bedsole, Moore (P), Butler,
Lomax, Robertson, Whorton, Wadsworth, Rehm, Hammett, Marques,
Brown, Smith, Sorrells, Datcher, Crawford, Harrison, Paschal,
Allbright, Baker, Clouse, Paramore, Standridge, Yarbrough,
Carns, Bolton, Fincher, Starnes, Stubbs, Shirey, Lamb, Fidler,
Givens, Boyd, Lipscomb, Hurst, Lee, Mooney, Underwood, Ingram,
Pringle, Whitt, Collins, Stringer, Gidley, Blackshear,
Reynolds
RFD: Insurance
First Read: 29-Jan-26
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HB361 Enrolled
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First Read: 29-Jan-26
Enrolled, An Act,
Relating to organ donation; to prohibit insurers from
discriminating against organ donors in obtaining life,
disability, and long-term care insurance coverage; to require
the state and local governments to grant leave to employees
who donate an organ or bone marrow; and to establish a tax
credit for private employers who allow employees paid leave to
donate organs.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. (a) This section may be cited as the Alabama
Living Donor Protection Act.
(b) For the purposes of this section, the following
terms have the following meanings:
(1) INSURER. Any entity that issues, delivers, or
renews a policy.
(2) LIVING ORGAN DONOR. An individual who donates all
or part of an organ and is not deceased.
(3) POLICY. Any of the following contracts:
a. Disability insurance as defined in Section 27-5-4,
Code of Alabama 1975.
b. Life insurance as defined in Section 27-5-2, Code of
Alabama 1975.
c. Long-term care insurance as defined in Section
27-19-103, Code of Alabama 1975.
(c) An insurer may not:
(1) Decline or limit coverage of an individual under
any policy solely, and without any additional actuarial risk,
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any policy solely, and without any additional actuarial risk,
due to the status of the individual as a living organ donor;
(2) Require an individual to refrain from acting as a
living organ donor as a condition for renewal of a policy; or
(3) Otherwise discriminate in the offering, issuance,
cancellation, amount of coverage, price, or any other
condition of a policy based solely, and without any additional
actuarial risk, upon the status of an individual as a living
organ donor.
Section 2. (a) For purposes of this section, the term
"employee" means an individual who is employed by any
department, agency, or instrumentality of the State of Alabama
who is subject to Chapter 26 of Title 36 of the Code of
Alabama 1975, and who is a permanent employee with at least
one year of state service.
(b) An employee may be granted living donor leave with
pay for donating an organ or bone marrow, upon fulfillment of
all of the following conditions:
(1) Submission to the appointing authority of written
request for leave, accompanied by written verification from
the physician who will be performing the medical procedure.
(2) A recommendation for the leave, based on the
submission required in subdivision (1), by the appointing
authority.
(3) Approval of the State Director of Personnel.
(c) The leave granted may be for no more than 30 days
in the case of an organ donation and seven days in the case of
a bone marrow donation.
(d) Living donor leave shall be a separate
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(d) Living donor leave shall be a separate
classification of leave which shall not apply to or exhaust an
employee's accrued or available leave under any other leave
classification.
Section 3. (a) For purposes of this section, the
following terms have the following meanings:
(1) EMPLOYEE. An individual who is permanently employed
by a county or municipality.
(2) EMPLOYER. Any county or municipality of the state.
(b) An employee who has at least one year of service
with the employer may be granted living donor leave with pay
for donating an organ or bone marrow, upon fulfillment of both
of the following conditions:
(1) Submission to the employee's immediate supervisor
of a written request for leave, accompanied by written
verification from the physician who will be performing the
medical procedure.
(2) A recommendation for the leave, based on the
submission in subdivision (1), by the supervisor.
(3) Approval of the appointing authority or the
executive head of the employing department, agency, or
division of the employer.
(c) The leave granted may be for no more than 30 days
in the case of an organ donation and seven days in the case of
a bone marrow donation.
(d) Living donor leave shall be a separate
classification of leave which shall not apply to or exhaust an
employee's accrued or available leave under any other leave
classification pursuant to rule or policy of the employer.
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classification pursuant to rule or policy of the employer.
(e) An employer may not threaten, restrain, coerce,
discipline, discharge, terminate, or otherwise retaliate or
discriminate against an employee for requesting or using a
leave of absence as provided by this section.
Section 4. (a) For purposes of this section, the term
"public employee" means an individual who is permanently
employed by a department, agency, or other instrumentality of,
or entity affiliated with, the State of Alabama in which the
individual's compensation is derived in whole or in part from
funds appropriated in the State General Fund or Education
Trust Fund and who is not otherwise covered under Sections 2
or 3 of this act.
(b) A public employee who has at least one year of
service may be granted living donor leave with pay for
donating an organ or bone marrow, upon fulfillment of the
following conditions:
(1) Submission to the employee's immediate supervisor
of a written request for leave, accompanied by written
verification from the physician who will be performing the
medical procedure.
(2) A recommendation for the leave based on the
submission in subdivision (1) by the supervisor.
(3) Approval of the executive who directs the employing
instrumentality or entity.
(c) The leave granted may be for no more than 30 days
in the case of an organ donation and seven days in the case of
a bone marrow donation.
(d) Living donor leave shall be a separate
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(d) Living donor leave shall be a separate
classification of leave which shall not apply to or exhaust an
employee's accrued or available leave under any other leave
classification pursuant to rule or policy of the employer.
(e) An employer may not threaten, restrain, coerce,
discipline, discharge, terminate, or otherwise retaliate or
discriminate against an employee for requesting or using a
leave of absence as provided by this section.
Section 5. (a) In recognition that it is the policy of
the State of Alabama to encourage organ donation to
individuals in dire medical need, as set forth in Section
22-19-71.1, Code of Alabama 1975, the tax credit provided in
this section is intended by the Legislature to foster
employment conditions that encourage organ donation.
(b) For purposes of this section, the following terms
have the following meanings:
(1) MINIMUM LEAVE PERIOD. Fifteen days.
(2) TAXPAYER. A private sector employer.
(c) Effective for tax years beginning January 1, 2027,
and ending December 31, 2031, a taxpayer shall be entitled to
a state income tax credit for providing paid leave to
employees for the purpose of making an organ donation subject
to all of the following requirements:
(1) The taxpayer must adopt a formal, written policy
that allows an employee to take a paid leave of absence of no
less than the minimum leave period to undergo a medical
procedure to donate all or part of an organ to another
individual.
(2) The leave policy must be available without any
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(2) The leave policy must be available without any
reduction in pay, or loss of vacation time, compensatory time,
personal days, or sick leave for no less than the minimum
leave period.
(3) The leave policy may apply only to an employee for
whom the taxpayer is responsible for providing an IRS Form W-2
Wage and Tax Statement.
(4) The leave policy shall require the employee to
provide signed authorization to disclose to the taxpayer and
the Department of Revenue documentation from the employee's
medical provider which verifies the organ donation, in
compliance with the Health Insurance Portability and
Accountability Act of 1996 (HIPAA), 42 U.S.C. § 1320d et seq.
(5) The tax credit amount shall be equal to 25 percent
of the amount of gross compensation paid to the worker for the
period of leave taken, up to 30 days, credited to the
taxpayer's state income tax liability.
(6) The total amount that may be credited to the
taxpayer's state income tax liability for a tax year is two
thousand dollars ($2,000).
(7) If there is a medical determination after the
taxpayer's approval of the leave of absence that the employee
does not qualify as an organ donor, the amount of the tax
credit shall be limited to the amount of gross compensation
paid to the worker from the beginning of the leave period
through the day of the medical determination.
(8) If the amount of the credit exceeds the tax
liability for the year, the excess may be carried forward and
applied to the tax liability for up to the three succeeding
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applied to the tax liability for up to the three succeeding
tax years.
(9) A taxpayer may not sell or transfer any tax credit
that the taxpayer is eligible to claim under this section.
(d) The Department of Revenue shall adopt rules, forms,
and worksheets for the implementation of this section.
Section 6. This act shall become effective October 1,
2026, except Section 5 shall become effective January 1, 2027.
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________________________________________________
Speaker of the House of Representatives
________________________________________________
President and Presiding Officer of the Senate
House of Representatives
I hereby certify that the within Act originated in and
was passed by the House 24-Feb-26.
John Treadwell
Clerk
Senate 08-Apr-26 Passed
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