Alabama House Bill HB297

Alabama 2025 Regular Session

• Introduced: 2/18/25
• Refer: 2/18/25
• Report Pass: 3/19/25
• Refer: 3/20/25

Caption

International wire transfers; fee imposed on transfers; fee proceeds distributed to counties for specified purposes; income tax credit for paid wire transfer fees authorized

Impact

The implementation of HB297 will have significant implications for money transmission companies and their customers. As the bill requires these businesses to collect additional fees, consumers will face increased costs when sending money internationally. The revenue collected will assist county sheriffs with immigration law enforcement and aid public resources geared toward English language learners and health services for immigrant communities. An added feature of the legislation is a tax credit for taxpayers, enabling them to receive a credit against their income taxes equivalent to the wire transfer fees paid, capped at $5,000.

Summary

House Bill 297 introduces a framework for imposing a fee on outgoing international electronic wire transfers conducted by licensed money transmission businesses. The bill mandates these businesses to collect a fee equal to four percent of the total amount of each transfer, effective from January 1, 2026. The fees collected will be forwarded to the Alabama Securities Commission, which will distribute the funds into two newly established state treasury funds: the Sheriffs' Immigration Enforcement and Detainer Fund and the Immigration Assimilation Resources Fund. These measures aim to provide financial resources for law enforcement and community support for immigrants.

Contention

While the bill aims to streamline fee collection and promote effective use of funds in supporting law enforcement and community programs, it may encounter opposition from advocates for immigrant rights and consumer protection groups. Critics may argue that the mandatory fees imposed could disproportionately affect low-income individuals who rely on remittance services to support families abroad. Additionally, there could be debate around the appropriateness of using wire transfer fees to fund law enforcement activities, potentially reframing discussions on state revenue generation and local government responsibilities.