Alabama 2025 Regular Session

Alabama Senate Bill SB77 Compare Versions

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

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1	1	SB77INTRODUCED
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3	3	SB77
4	4	G1HNC62-1
5	5	By Senators Weaver, Bell, Elliott, Kelley, Kitchens,
6	6	Chambliss, Gudger, Barfoot
7	7	RFD: County and Municipal Government
8	8	First Read: 04-Feb-25
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14	14	6 G1HNC62-1 02/04/2025 PMG (L)PMG 2024-2605
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16	16	First Read: 04-Feb-25
17	17	SYNOPSIS:
18	18	Under existing law, money transmission
19	19	businesses, which include businesses that conduct
20	20	electronic wire transfers, must be licensed by the
21	21	Alabama Securities Commission.
22	22	This bill would require money transmission
23	23	businesses to collect on outgoing international
24	24	electronic wire transfers a fee of $7.50, plus 1.5
25	25	percent of the amount in excess of $500 and would
26	26	provide that the fees collected be periodically
27	27	deposited into the Sheriffs' Immigration Enforcement
28	28	and Detainer Fund.
29	29	This bill would create the Sheriffs' Immigration
30	30	Enforcement and Detainer Fund in the State Treasury to
31	31	fund county sheriffs for costs and expenses related to
32	32	enforcing immigration laws and housing violators of
33	33	immigration laws.
34	34	This bill would allow taxpayers to be granted a
35	35	tax credit against income taxes in the amount of all
36	36	international electronic wire transfer fees paid by the
37	37	customer.
38	38	This bill would require the Department of
39	39	Revenue to establish a notice to customers who initiate
40	40	international electronic wire transfers of the ability
41	41	to be granted a tax credit for outgoing international
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71	71	to be granted a tax credit for outgoing international
72	72	wire transfer fees paid by a taxpayer.
73	73	This bill would also authorize the Alabama
74	74	Securities Commission and the Alabama Department of
75	75	Revenue to administer this act.
76	76	A BILL
77	77	TO BE ENTITLED
78	78	AN ACT
79	79	Relating to wire transfers; to require money
80	80	transmission businesses to collect fees on outgoing
81	81	international wire transfers and provide for distribution of
82	82	fee proceeds; to establish the Sheriffs' Immigration
83	83	Enforcement and Detainer Fund; to authorize an income tax
84	84	credit equal to the amount of fees paid by taxpayers for
85	85	outgoing international wire transfers; and to authorize the
86	86	Alabama Securities Commission and the Alabama Department of
87	87	Revenue to administer this act.
88	88	BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
89	89	Section 1. For the purpose of this act, the following
90	90	terms have the following meanings:
91	91	(1) COMMISSION. The Alabama Securities Commission.
92	92	(2) DEPARTMENT. The Alabama Department of Revenue.
93	93	(3) ELECTRONIC WIRE TRANSFER. An electronic transfer of
94	94	money via a network. The term does not include a transaction
95	95	where money debited is from an account held by the requester
96	96	of a transfer of a banking institution authorized to do
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126	126	of a transfer of a banking institution authorized to do
127	127	business in this state or any business entity authorized by
128	128	law to do business in this state.
129	129	(4) MONEY TRANSMISSION BUSINESS. Any person required to
130	130	obtain a license pursuant to Chapter 7A of Title 8, Code of
131	131	Alabama 1975.
132	132	Section 2. (a)(1) On and after January 1, 2026, each
133	133	money transmission business shall collect a fee of seven
134	134	dollars and fifty cents ($7.50) on every outgoing
135	135	international electronic wire transfer not in excess of five
136	136	hundred dollars ($500) and in addition to such fee an amount
137	137	equal to one and one-half percent of the amount in excess of
138	138	five hundred dollars ($500).
139	139	(2) A money transmission business shall provide to each
140	140	customer a receipt for each international electronic wire
141	141	transfer which clearly delineates the fees incurred pursuant
142	142	to this subsection.
143	143	(b) Not later than the 45 days following the close of
144	144	each calendar quarter, a money transmission business shall
145	145	remit the fees collected under subsection (a) to the
146	146	commission by means established by rule of the commission. The
147	147	commission shall deposit monies collected pursuant to this
148	148	subsection to the State Treasury to the credit of the
149	149	Sheriffs' Immigration Enforcement and Detainer Fund.
150	150	(c) Each money transmission business shall report to
151	151	the commission the number of international electronic wire
152	152	transfers made during a calendar quarter along with the
153	153	monetary amount of each transfer and any additional
154	154	information required by the commission, by rule, at the time
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184	184	information required by the commission, by rule, at the time
185	185	the fees are remitted pursuant to subsection (b).
186	186	(d) Each money transmission business shall post the
187	187	notice established pursuant to Section 3(e) in an area
188	188	accessed by the public where electronic wire transfers are
189	189	conducted.
190	190	(e) Except as provided in this act, Chapter 7A of Title
191	191	8, Code of Alabama 1975, shall apply.
192	192	(f) The commission shall adopt rules to administer this
193	193	section.
194	194	Section 3. (a)(1) For tax years beginning on and after
195	195	January 1, 2026, a credit is allowed against income taxes
196	196	imposed by Chapter 18 of Title 40, Code of Alabama 1975, in
197	197	the amount of all international electronic wire transfer fees
198	198	paid by any taxpayer under Section 2 or five thousand dollars
199	199	($5,000), whichever is less. The credit must be claimed on the
200	200	tax return that corresponds with the tax year during which the
201	201	fees were paid.
202	202	(2) To qualify for the income tax credit, a taxpayer
203	203	shall submit to the department in a manner prescribed by the
204	204	department, by rule, the receipts received under Section
205	205	2(a)(2).
206	206	(b) The tax credit shall not be allowed to decrease a
207	207	taxpayer's liability to less than zero. The credit is not
208	208	refundable and may not be carried forward. The credit shall be
209	209	available on a pro-rata basis to entities taxed under 26
210	210	U.S.C. Subtitle A, Chapter 1, Subchapter S or Subchapter K.
211	211	(c) The department shall not be required under this
212	212	section to disclose confidential information subject to
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242	242	section to disclose confidential information subject to
243	243	Section 40-2A-10, Code of Alabama 1975. However, the
244	244	department may share information with the commission upon
245	245	written request in order to aid or assist with any
246	246	investigation or other action authorized by Chapter 7A of
247	247	Title 8, Code of Alabama 1975. Additionally, the commission
248	248	may share information with the department to enforce this act.
249	249	The information shared shall be limited to what is necessary
250	250	to administer this act and shall not be considered public
251	251	records for purposes of Article 3 of Chapter 12 of Title 36,
252	252	Code of Alabama 1975. Upon receipt of information from the
253	253	department, Section 40-2A-10, Code of Alabama 1975, shall
254	254	apply to the commission and its employees with respect to the
255	255	use, dissemination, or other handling of the information. The
256	256	department shall comply with Section 8-7A-21(b), Code of
257	257	Alabama 1975, as to any information shared by the commission.
258	258	(d) The department, by rule, may require a money
259	259	transmission business to provide certifying documents and
260	260	other information necessary to determine or confirm the tax
261	261	credit amounts referenced in this section.
262	262	(e) The department shall establish a standard form to
263	263	be posted by money transmission businesses which notifies
264	264	customers that upon filing an Alabama income tax return with
265	265	either a valid Social Security number or a valid taxpayer
266	266	identification number, the customer may be entitled to an
267	267	income tax credit equal to the amount of the electronic wire
268	268	transfer fees paid by the customer for the international
269	269	electronic wire transfer.
270	270	(f) The department shall adopt rules to implement this
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300	300	(f) The department shall adopt rules to implement this
301	301	section.
302	302	Section 4. (a) There is created within the State
303	303	Treasury the Sheriffs' Immigration Enforcement and Detainer
304	304	Fund. Amounts deposited into the fund shall be budgeted and
305	305	allotted in accordance with Section 41-4-80 through 41-4-96,
306	306	Code of Alabama 1975.
307	307	(b) The Comptroller shall allocate funds on a quarterly
308	308	basis to all county sheriffs based on the percentage of total
309	309	population of the respective counties as reported in the most
310	310	recent federal decennial census. Funds shall be expended by
311	311	county sheriffs to offset any additional costs and expenses
312	312	related to enforcing or assisting the enforcement of federal
313	313	and state immigration laws and the care and housing of
314	314	individuals who violate immigration laws.
315	315	(c) Funds received by a sheriff under this section
316	316	shall be subject to audit by the Department of Examiners of
317	317	Public Accounts in the same manner as other funds expended by
318	318	the sheriff.
319	319	Section 5. This act shall become effective on July 1,
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