Living Donor Protection Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 663

Short Title: Living Donor Protection Act. (Public)
Sponsors: Representatives Shepard, Wheatley, G. Pierce, and Campbell (Primary
Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Health, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the
House
April 3, 2025
*H663-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROTECT LI VING DONORS FROM POT ENTIAL INSURANCE 2
DISCRIMINATION, TO PROVIDE AN INCOME TAX CREDIT FOR UNREIMBURSED 3
MEDICAL EXPENSES RES ULTING FROM CERTAIN ORGAN AND MARROW 4
DONATIONS, AND TO PR OVIDE UP TO THIRTY D AYS' PAID LEAVE TO STATE 5
EMPLOYEES AND OTHER STATE-SUPPORTED PERS ONNEL WHO SERVE AS 6
LIVING ORGAN DONORS AND UP TO SEVEN DAYS ' PAID LEAVE FOR BON E 7
MARROW DONORS. 8
The General Assembly of North Carolina enacts: 9
10
PART I. INSURANCE PROTECTIONS 11
SECTION 1.(a) G.S. 58-3-25 is amended by adding a new subsection to read: 12
"(d) No insurer shall refuse to insure or to continue to insure an individual; limit the 13
amount, extent, or kind of coverage available to an individual; charge an individual a different 14
amount for the same co verage; or otherwise discriminate against an individual in the offering, 15
issuance, cancellation, price, or conditions of a policy, or in the amount of coverage provided 16
under a policy, based solely and without any additional actuarial risks on the status o f an 17
individual as a living organ donor. This subsection shall apply to health benefit plans and life, 18
accident and health, disability, disability income, and long-term care insurance policies. For the 19
purposes of this subsection, the phrase "a living organ donor" shall mean a living individual who 20
donates one or more of that individual's human organs, including bone marrow, to be medically 21
transplanted into the body of another individual." 22
SECTION 1.(b) This section is effective 30 days after it becomes law and applies to 23
insurance contracts issued, renewed, or amended on or after that date. 24
25
PART II. TAX CREDIT 26
SECTION 2.(a) Part 2 of Article 4 of Subchapter I of Chapter 105 of the General 27
Statutes is amended by adding a new section to read: 28
"§ 105-153.12. Credit for live organ donation. 29
(a) Definitions. – The following definitions apply in this section: 30
(1) Human organ. – Human bone marrow or any organ of a human, including the 31
intestine, kidney, liver, lung, or pancreas. 32
General Assembly Of North Carolina Session 2025
Page 2 House Bill 663-First Edition
(2) Live organ donation. – A donation by a living individual of one or more of the 1
individual's human organs to another human to be transplanted using a 2
medical procedure to the body of another individual. 3
(3) Live organ donation expenses. – The total amount of the expenses listed in 4
this subdivision that are incurred by the taxpayer, that are directly related to a 5
live organ donation, and that are not reimbursed to the taxpayer by any person. 6
An expense is "directly related" if it is incurred due to a live organ donation 7
procedure or due to evaluation, recovery, follow-up visits, or rehospitalization 8
associated with a live organ donation procedure. The expenses are: 9
a. Lost wages. 10
b. Transportation, lodging, and meals. 11
(4) Lost wages. – All monetary payments from employment or services that are 12
taxable as income under the Code and that are not reimbursed through another 13
source, such as sick pay or short-term disability benefits. The term does not 14
include capital gains, IRA distributions, pensions, annuities, unemployment 15
compensation, State workers ' compensation benefits, medical retirement 16
benefits, or social security benefits. 17
(b) Credit. – A taxpayer who makes a live organ donation or who is allowed to claim as 18
a dependent a person who makes a live organ donation is allowed a credit against the tax imposed 19
by this Part equal to the lesser of the live organ donation expenses or five thousand dollars 20
($5,000). For the purposes of this section, "dependent" means a qualifying child or qualif ying 21
relative as defined in section 152 of the Code. 22
(c) Limitation. – The credit allowed under this section may not exceed the amount of tax 23
imposed by this Part for the taxable year reduced by the sum of all other credits allowable, except 24
tax payment made by or on behalf of the taxpayer. 25
(d) Carryforward. – Any unused portion of a credit allowed in this section may be carried 26
forward for the succeeding five years." 27
SECTION 2.(b) G.S. 105-153.5(a) reads as rewritten: 28
"(a) Deduction Amount. – In calculating North Carolina taxable income, a taxpayer may 29
deduct from adjusted gross income either the standard deduction amount provided in subdivision 30
(1) of this subsection or the itemized deduction amount provided in subdivision (2) of this 31
subsection. The deduction amounts are as follows: 32
… 33
(2) Itemized deduction amount. – An amount equal to the sum of the items listed 34
in this subdivision. The amounts allowed under this subdivision are not 35
subject to the overall limitation on itemized deductions under section 68 of 36
the Code: 37
… 38
c. Medical and Dental Expense. – The amount allowed as a deduction for 39
medical and dental expenses under section 213 of the Code for that 40
taxable year. No deduction is allowed for live organ donation expenses 41
for which a credit was taken under G.S. 105-153.12. 42
…." 43
SECTION 2.(c) G.S. 105-160.3(b) reads as rewritten: 44
"(b) The tax credits allowed under G.S. 105-153.9 or G.S. 105-153.12 may not be claimed 45
by an estate or trust." 46
SECTION 2.(d) This section is effective for taxable years beginning on or after 47
January 1, 2025. 48
49
PART III. PAID LEAVE FOR STATE EMPLOYEES 50
General Assembly Of North Carolina Session 2025
House Bill 663-First Edition Page 3
SECTION 3.(a) Article 2 of Chapter 126 of the General Statutes is amended by 1
adding a new section to read: 2
"§ 126 -8.7. Paid lea ve for State employees and State -supported personnel for organ 3
donation. 4
(a) Full-Time Employees. – The State Human Resources Commission shall adopt rules 5
and policies to provide that a permanent, full -time State employee may take, in addition to any 6
other leave available to the employee, up to (i) 30 days of paid leave for the purposes of serving 7
as a living organ donor and (ii) seven days for serving as a bone marrow donor. The employee 8
must have been continuously employed by the State for at least 12 months immediately preceding 9
the first request for paid organ or bone marrow donation leave. 10
(b) Part-Time Employees. – The State Human Resources Commission shall adopt rules 11
and policies to provide that a permanent, part -time State employee may take, in addi tion to any 12
other leave available to the employee, a prorated amount of up to (i) 30 days of paid leave for the 13
purposes of serving as a living organ donor and (ii) seven days for serving as a bone marrow 14
donor. The employee must have been continuously employed by the State for at least 12 months 15
immediately preceding the first request for paid organ or bone marrow donation leave. 16
(c) Program Requirements. – The paid leave for organ or bone marrow donation 17
authorized by this section: 18
(1) Is available without exhaustion of the employee's sick and vacation leave. 19
(2) Is in addition to, and not in lieu of, shared leave under G.S. 126-8.3, or other 20
leave authorized by federal or State law. 21
(3) May not be used for retirement purposes. 22
(4) Has no cash value upon termination from employment. 23
(d) Applicability. – This section applies to all (i) State employees and (ii) State-supported 24
personnel, with the appropriate governing board adopting rules and policies to provide paid leave 25
for organ donation to its employees as provided by this section. 26
(e) Reporting. – By April 1, 202 6, and then annually thereafter, the State Human 27
Resources Commission, the State Board of Education, the State Board of Community Colleges, 28
and all State agencies, departments, and institutions s hall annually report to the Office of State 29
Human Resources on the paid organ donation leave program." 30
SECTION 3.(b) G.S. 126-5 is amended by adding a new subsection to read: 31
"(c22) The provisions of G.S. 126-8.7 shall apply to all State employees, public school 32
employees, and community college employees." 33
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PART IV. EFFECTIVE DATE 35
SECTION 4. Except as otherwise provided, this act is effective when it becomes 36
law. 37