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, insurers are not allowed to decline or limit coverage based solely on an individual's status as a living organ donor, nor can they require individuals to refrain from donating as a condition for policy renewal. Additionally, the Act 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 Act 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
Enrolled: 27-5-4, 27-5-2, 27-19-103