Alabama 2024 Regular Session

Alabama Senate Bill SB232 Compare Versions

Only one version of the bill is available at this time.

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1	1	SB232INTRODUCED
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3	3	SB232
4	4	6BQBZ3Z-1
5	5	By Senators Orr, Williams, Sessions, Stutts, Carnley, Kelley,
6	6	Roberts
7	7	RFD: Banking and Insurance
8	8	First Read: 19-Mar-24
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14	14	6 6BQBZ3Z-1 01/12/2024 FC (L) ma 2024-171
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16	16	First Read: 19-Mar-24
17	17	SYNOPSIS:
18	18	Under existing law, a nonprofit organization is
19	19	not authorized to offer health benefits to its members
20	20	and their families under a law that specifies that the
21	21	organization is not an insurer or in the business of
22	22	insurance.
23	23	This bill would authorize a nonprofit
24	24	agricultural organization to offer health benefits to
25	25	its members and their families. The bill would specify
26	26	that the nonprofit agricultural organization would not
27	27	be engaged in the business of health insurance.
28	28	A BILL
29	29	TO BE ENACTED
30	30	AN ACT
31	31	Relating to health benefits offered by a nonprofit
32	32	organization; to authorize a nonprofit agricultural
33	33	organization to offer health benefits to its members and their
34	34	families under certain conditions; and to specify that the
35	35	nonprofit agricultural organization would not be engaged in
36	36	the business of health insurance.
37	37	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
38	38	Section 1. DEFINITIONS. For purposes of this act, the
39	39	following words have the following meanings:
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67	67	28 SB232 INTRODUCED
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69	69	following words have the following meanings:
70	70	(1) NONPROFIT AGRICULTURAL ORGANIZATION. An
71	71	organization that meets all of the following:
72	72	a. Is exempt from federal income taxation under Section
73	73	501(a), Internal Revenue Code of 1986, as an organization
74	74	described by Section 501(c)(5).
75	75	b. Is domiciled in this state.
76	76	c. Was in existence prior to 1940.
77	77	d. Is composed of members who are residents of at least
78	78	98 percent of the counties in this state.
79	79	e. Collects annual dues from its members.
80	80	f. Was created to promote and develop the most
81	81	profitable and desirable system of agriculture and the most
82	82	wholesome and satisfactory conditions of rural life in
83	83	accordance with its articles of organization and bylaws.
84	84	(2) NONPROFIT AGRICULTURAL ORGANIZATION HEALTH
85	85	BENEFITS. Health benefits that meet all of the following
86	86	conditions:
87	87	a. Are sponsored by a nonprofit agricultural
88	88	organization or an affiliate of the organization.
89	89	b. Are offered only to either of the following:
90	90	1. Members of the nonprofit agricultural organization.
91	91	2. Family members of members of the nonprofit
92	92	agricultural organization.
93	93	c. Are not provided through an insurance policy or
94	94	other product the offering or issuance of which is regulated
95	95	as the business of insurance in this state.
96	96	d. Are deemed by the nonprofit agricultural
97	97	organization to be important in assisting its members to live
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127	127	organization to be important in assisting its members to live
128	128	long and productive lives.
129	129	Section 2. A nonprofit agricultural organization or an
130	130	affiliate of the organization may offer in this state
131	131	nonprofit agricultural organization health benefits.
132	132	Section 3.(a) A nonprofit agricultural organization
133	133	that offers nonprofit agricultural organization health
134	134	benefits shall provide to an individual applying for nonprofit
135	135	agricultural organization health benefits written notice that
136	136	the benefits are not provided through an insurance policy or
137	137	other product the offering or issuance of which is regulated
138	138	as the business of insurance in this state.
139	139	(b) An individual shall be required to sign and return
140	140	to the nonprofit agricultural organization the notice
141	141	described by subsection (a) before the individual may enroll
142	142	in nonprofit agricultural organization health benefits. The
143	143	nonprofit agricultural organization shall do both of the
144	144	following:
145	145	(1) Maintain a copy of the signed written notice for
146	146	the duration of the term during which the nonprofit
147	147	agricultural organization health benefits are provided to the
148	148	individual.
149	149	(2) At the request of the individual, provide a copy of
150	150	the written notice to the individual.
151	151	Section 4. Notwithstanding any provision of Title 27 or
152	152	Article 6 of Chapter 20 of Title 10A of the Code of Alabama
153	153	1975, for the purposes of offering nonprofit agricultural
154	154	organization health benefits, a nonprofit agricultural
155	155	organization that acts in accordance with this act is not a
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185	185	organization that acts in accordance with this act is not a
186	186	health insurer and is not engaging in the business of health
187	187	insurance in this state.
188	188	Section 5. A nonprofit agricultural organization that
189	189	offers nonprofit agricultural organization health benefits
190	190	under this act may contract with an entity or entities
191	191	authorized to engage in the business of insurance in this
192	192	state that is not under common control with the nonprofit
193	193	agricultural organization in order to transfer to the entity
194	194	or entities all or a portion of the organization's risks
195	195	arising from nonprofit agricultural organization health
196	196	benefits offered under this act.
197	197	Section 6. All laws or parts of laws which conflict
198	198	with this act are repealed.
199	199	Section 7. This act shall become effective June 1,
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