The Alabama Living Donor Protection Act aims to enhance protections for living organ donors by prohibiting insurers from discriminating against them in life, disability, and long-term care insurance coverage. Specifically, the bill prohibits insurers from declining or limiting coverage based solely on an individual's status as a living organ donor, requiring them to refrain from donating as a condition for policy renewal, or discriminating in any other way without additional actuarial risk. Additionally, the bill mandates that state and local governments provide paid leave for employees who donate organs or bone marrow, ensuring that this leave does not deplete any other accrued leave.

Furthermore, the bill establishes a tax credit for private employers who offer paid leave to employees for organ donation. This tax credit, effective from January 1, 2027, allows employers to claim 25% of the gross compensation paid to employees during their leave, up to a maximum of $2,000 per tax year. Employers must adopt a formal policy for paid leave and ensure that employees do not face any penalties for taking this leave. The act is set to take effect on October 1, 2026, with the tax credit provisions commencing in 2027.

Statutes affected:
Introduced: 27-5-4, 27-5-2, 27-19-103
Engrossed: 27-5-4, 27-5-2, 27-19-103