HB21 Alabama 2012 1st Special Session

Summary

Primary Sponsor

Jay Love

Republican

Session

First Special Session 2012

Title

Auburn University, board of trustees, selection process revised, Amendment 670, Constitution of Alabama of 1901, repealed, const. amend.

Summary

HB21 would let United Ways of Alabama and its local United Ways participate in the State Employees' Insurance Board health coverage for their staff and retirees.

What This Bill Does

It adds United Ways of Alabama and its member United Ways to the list of entities that may elect state health insurance coverage. If they participate, their officers, employees, members, and retirees could be eligible for SEIB health coverage and benefits, with premiums potentially paid by the employer. Participation is voluntary for the SEIB, and employers would handle premium payments and information; if an employer withdraws, it must cover incurred claims, pay interest on overdue amounts, and LGHP providers cannot offer benefits to the withdrawing entity for two years. The SEIB would set rules and may hire actuarial or other services as needed to run the program.

Who It Affects

• United Ways of Alabama and its member United Ways would be eligible to elect to participate in SEIB health insurance, making their staff and retirees eligible for coverage under the state plan.
• Employers and government entities that participate in SEIB (including the involved state and local agencies) would manage enrollment, premium payments, and withdrawal obligations, with potential cost-sharing and the consequences described if they withdraw.

Key Provisions

• Adds United Ways of Alabama and its member United Ways to the entities eligible to elect health insurance coverage under the State Employees' Insurance Board.
• Participation in SEIB health coverage is optional for the participating entity; eligible employees, officers, members, and retirees would receive benefits as designated by SEIB; employer may pay part of the premiums.
• Employers must remit premiums to SEIB and provide required information; withdrawal requires a six-month notice by resolution and written notice to SEIB.
• Withdrawn entities must pay claims incurred before withdrawal (whether or not reported/paid by withdrawal date); they owe interest on overdue amounts; LGHP providers cannot provide benefits to withdrawing entity for two years.
• SEIB must establish rules and may hire actuarial and other services; compensation for staff (outside merit system) and related expenses are handled by the board.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments