The bill amends Section 36-1-4.3 of the Code of Alabama 1975 to expand the types of deductions that can be made from the salaries of state employees. Notably, it introduces the requirement that deductions can be initiated by a group of at least 200 participating state employees and specifies that these deductions may include membership dues, voluntary contributions, insurance premiums, and financial instruments offered through state employee membership associations, excluding deferred compensation plans. Additionally, the bill clarifies that any deduction can be terminated with two months' written notice from the employee.

The bill also includes technical revisions to update the existing code language and introduces a definition for "financial instrument," which refers to an executed agreement or contract for repayment terms, while stating that the state bears no liability for repayment between an employee and a financial institution. Furthermore, it allows the Comptroller to charge an administrative fee of up to one percent on the total deductions collected. The act is set to take effect on October 1, 2025.

Statutes affected:
Introduced: 36-1-4, 36-1-4
Enrolled: 36-1-4, 36-1-4