SB77INTRODUCED
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SB77
G1HNC62-1
By Senators Weaver, Bell, Elliott, Kelley, Kitchens,
Chambliss, Gudger, Barfoot
RFD: County and Municipal Government
First Read: 04-Feb-25
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6 G1HNC62-1 02/04/2025 PMG (L)PMG 2024-2605
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First Read: 04-Feb-25
SYNOPSIS:
Under existing law, money transmission
businesses, which include businesses that conduct
electronic wire transfers, must be licensed by the
Alabama Securities Commission.
This bill would require money transmission
businesses to collect on outgoing international
electronic wire transfers a fee of $7.50, plus 1.5
percent of the amount in excess of $500 and would
provide that the fees collected be periodically
deposited into the Sheriffs' Immigration Enforcement
and Detainer Fund.
This bill would create the Sheriffs' Immigration
Enforcement and Detainer Fund in the State Treasury to
fund county sheriffs for costs and expenses related to
enforcing immigration laws and housing violators of
immigration laws.
This bill would allow taxpayers to be granted a
tax credit against income taxes in the amount of all
international electronic wire transfer fees paid by the
customer.
This bill would require the Department of
Revenue to establish a notice to customers who initiate
international electronic wire transfers of the ability
to be granted a tax credit for outgoing international
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to be granted a tax credit for outgoing international
wire transfer fees paid by a taxpayer.
This bill would also authorize the Alabama
Securities Commission and the Alabama Department of
Revenue to administer this act.
A BILL
TO BE ENTITLED
AN ACT
Relating to wire transfers; to require money
transmission businesses to collect fees on outgoing
international wire transfers and provide for distribution of
fee proceeds; to establish the Sheriffs' Immigration
Enforcement and Detainer Fund; to authorize an income tax
credit equal to the amount of fees paid by taxpayers for
outgoing international wire transfers; and to authorize the
Alabama Securities Commission and the Alabama Department of
Revenue to administer this act.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. For the purpose of this act, the following
terms have the following meanings:
(1) COMMISSION. The Alabama Securities Commission.
(2) DEPARTMENT. The Alabama Department of Revenue.
(3) ELECTRONIC WIRE TRANSFER. An electronic transfer of
money via a network. The term does not include a transaction
where money debited is from an account held by the requester
of a transfer of a banking institution authorized to do
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of a transfer of a banking institution authorized to do
business in this state or any business entity authorized by
law to do business in this state.
(4) MONEY TRANSMISSION BUSINESS. Any person required to
obtain a license pursuant to Chapter 7A of Title 8, Code of
Alabama 1975.
Section 2. (a)(1) On and after January 1, 2026, each
money transmission business shall collect a fee of seven
dollars and fifty cents ($7.50) on every outgoing
international electronic wire transfer not in excess of five
hundred dollars ($500) and in addition to such fee an amount
equal to one and one-half percent of the amount in excess of
five hundred dollars ($500).
(2) A money transmission business shall provide to each
customer a receipt for each international electronic wire
transfer which clearly delineates the fees incurred pursuant
to this subsection.
(b) Not later than the 45 days following the close of
each calendar quarter, a money transmission business shall
remit the fees collected under subsection (a) to the
commission by means established by rule of the commission. The
commission shall deposit monies collected pursuant to this
subsection to the State Treasury to the credit of the
Sheriffs' Immigration Enforcement and Detainer Fund.
(c) Each money transmission business shall report to
the commission the number of international electronic wire
transfers made during a calendar quarter along with the
monetary amount of each transfer and any additional
information required by the commission, by rule, at the time
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information required by the commission, by rule, at the time
the fees are remitted pursuant to subsection (b).
(d) Each money transmission business shall post the
notice established pursuant to Section 3(e) in an area
accessed by the public where electronic wire transfers are
conducted.
(e) Except as provided in this act, Chapter 7A of Title
8, Code of Alabama 1975, shall apply.
(f) The commission shall adopt rules to administer this
section.
Section 3. (a)(1) For tax years beginning on and after
January 1, 2026, a credit is allowed against income taxes
imposed by Chapter 18 of Title 40, Code of Alabama 1975, in
the amount of all international electronic wire transfer fees
paid by any taxpayer under Section 2 or five thousand dollars
($5,000), whichever is less. The credit must be claimed on the
tax return that corresponds with the tax year during which the
fees were paid.
(2) To qualify for the income tax credit, a taxpayer
shall submit to the department in a manner prescribed by the
department, by rule, the receipts received under Section
2(a)(2).
(b) The tax credit shall not be allowed to decrease a
taxpayer's liability to less than zero. The credit is not
refundable and may not be carried forward. The credit shall be
available on a pro-rata basis to entities taxed under 26
U.S.C. Subtitle A, Chapter 1, Subchapter S or Subchapter K.
(c) The department shall not be required under this
section to disclose confidential information subject to
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section to disclose confidential information subject to
Section 40-2A-10, Code of Alabama 1975. However, the
department may share information with the commission upon
written request in order to aid or assist with any
investigation or other action authorized by Chapter 7A of
Title 8, Code of Alabama 1975. Additionally, the commission
may share information with the department to enforce this act.
The information shared shall be limited to what is necessary
to administer this act and shall not be considered public
records for purposes of Article 3 of Chapter 12 of Title 36,
Code of Alabama 1975. Upon receipt of information from the
department, Section 40-2A-10, Code of Alabama 1975, shall
apply to the commission and its employees with respect to the
use, dissemination, or other handling of the information. The
department shall comply with Section 8-7A-21(b), Code of
Alabama 1975, as to any information shared by the commission.
(d) The department, by rule, may require a money
transmission business to provide certifying documents and
other information necessary to determine or confirm the tax
credit amounts referenced in this section.
(e) The department shall establish a standard form to
be posted by money transmission businesses which notifies
customers that upon filing an Alabama income tax return with
either a valid Social Security number or a valid taxpayer
identification number, the customer may be entitled to an
income tax credit equal to the amount of the electronic wire
transfer fees paid by the customer for the international
electronic wire transfer.
(f) The department shall adopt rules to implement this
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(f) The department shall adopt rules to implement this
section.
Section 4. (a) There is created within the State
Treasury the Sheriffs' Immigration Enforcement and Detainer
Fund. Amounts deposited into the fund shall be budgeted and
allotted in accordance with Section 41-4-80 through 41-4-96,
Code of Alabama 1975.
(b) The Comptroller shall allocate funds on a quarterly
basis to all county sheriffs based on the percentage of total
population of the respective counties as reported in the most
recent federal decennial census. Funds shall be expended by
county sheriffs to offset any additional costs and expenses
related to enforcing or assisting the enforcement of federal
and state immigration laws and the care and housing of
individuals who violate immigration laws.
(c) Funds received by a sheriff under this section
shall be subject to audit by the Department of Examiners of
Public Accounts in the same manner as other funds expended by
the sheriff.
Section 5. This act shall become effective on July 1,
2025.
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