Alabama 2025 Regular Session

Alabama Senate Bill SB84 Compare Versions

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

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1	1	SB84INTRODUCED
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3	3	SB84
4	4	7D6I2VV-1
5	5	By Senator Orr
6	6	RFD: Banking and Insurance
7	7	First Read: 04-Feb-25
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12	12	5 7D6I2VV-1 01/29/2025 JC (L)JC 2025-383
13	13	Page 1
14	14	First Read: 04-Feb-25
15	15	SYNOPSIS:
16	16	Under existing law, a nonprofit organization is
17	17	not authorized to offer health benefits to its members
18	18	and their families under a law that specifies that the
19	19	organization is not an insurer or in the business of
20	20	insurance.
21	21	This bill would authorize a nonprofit
22	22	agricultural organization to offer health benefits to
23	23	its members and their families. The bill would also
24	24	specify that the nonprofit agricultural organization
25	25	would not be engaged in the business of health
26	26	insurance.
27	27	A BILL
28	28	TO BE ENTITLED
29	29	AN ACT
30	30	Relating to health benefits offered by a nonprofit
31	31	organization; to authorize a nonprofit agricultural
32	32	organization to offer health benefits to its members and their
33	33	families under certain conditions; and to specify that the
34	34	nonprofit agricultural organization would not be engaged in
35	35	the business of health insurance.
36	36	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
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64	64	28 SB84 INTRODUCED
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66	66	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
67	67	Section 1. For purposes of this act, the following
68	68	words have the following meanings:
69	69	(1) NONPROFIT AGRICULTURAL ORGANIZATION. An
70	70	organization that meets all of the following:
71	71	a. Is exempt from federal income taxation under Section
72	72	501(a), Internal Revenue Code of 1986, as an organization
73	73	described by Section 501(c)(5).
74	74	b. Is domiciled in this state.
75	75	c. Was in existence prior to the year 1940.
76	76	d. Is composed of members who are residents of at least
77	77	98 percent of the counties in this state.
78	78	e. Collects annual dues from its members.
79	79	f. Was created to promote and develop the most
80	80	profitable and desirable system of agriculture and the most
81	81	wholesome and satisfactory conditions of rural life in
82	82	accordance with its articles of organization and bylaws.
83	83	(2) NONPROFIT AGRICULTURAL ORGANIZATION HEALTH
84	84	BENEFITS. Health benefits that meet all of the following
85	85	conditions:
86	86	a. Are sponsored by a nonprofit agricultural
87	87	organization or an affiliate of the organization.
88	88	b. Are offered only to either of the following:
89	89	1. Members of the nonprofit agricultural organization.
90	90	2. Family members of members of the nonprofit
91	91	agricultural organization.
92	92	c. Are not provided through an insurance policy or
93	93	other product the offering or issuance of which is regulated
94	94	as the business of insurance in this state.
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124	124	as the business of insurance in this state.
125	125	d. Are deemed by the nonprofit agricultural
126	126	organization to be important in assisting its members to live
127	127	long and productive lives.
128	128	Section 2. A nonprofit agricultural organization or an
129	129	affiliate of the organization may offer in this state
130	130	nonprofit agricultural organization health benefits.
131	131	Section 3. (a) A nonprofit agricultural organization
132	132	that offers nonprofit agricultural organization health
133	133	benefits shall provide to an individual applying for nonprofit
134	134	agricultural organization health benefits written notice that
135	135	the benefits are not provided through an insurance policy or
136	136	other product the offering or issuance of which is regulated
137	137	as the business of insurance in this state.
138	138	(b) An individual shall be required to sign and return
139	139	to the nonprofit agricultural organization the notice
140	140	described by subsection (a) before the individual may enroll
141	141	in nonprofit agricultural organization health benefits. The
142	142	nonprofit agricultural organization shall do both of the
143	143	following:
144	144	(1) Maintain a copy of the signed written notice for
145	145	the duration of the term during which the nonprofit
146	146	agricultural organization health benefits are provided to the
147	147	individual.
148	148	(2) At the request of the individual, provide a copy of
149	149	the written notice to the individual.
150	150	Section 4. Notwithstanding any provision of Title 27 or
151	151	Article 6 of Chapter 20 of Title 10A of the Code of Alabama
152	152	1975, for the purposes of offering nonprofit agricultural
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182	182	1975, for the purposes of offering nonprofit agricultural
183	183	organization health benefits, a nonprofit agricultural
184	184	organization that acts in accordance with this act is not a
185	185	health insurer and is not engaging in the business of health
186	186	insurance in this state.
187	187	Section 5. A nonprofit agricultural organization that
188	188	offers nonprofit agricultural organization health benefits
189	189	under this act may contract with an entity or entities
190	190	authorized to engage in the business of insurance in this
191	191	state that is not under common control with the nonprofit
192	192	agricultural organization in order to transfer to the entity
193	193	or entities all or a portion of the organization's risks
194	194	arising from nonprofit agricultural organization health
195	195	benefits offered under this act.
196	196	Section 6. All laws or parts of laws that conflict with
197	197	this act are repealed.
198	198	Section 7. This act shall become effective on October
199	199	1, 2025.
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