Texas House Bill HB263

Texas 2009 - 81st Regular

• Filed: 11/17/08

Caption

Relating to the imposition of a fee for money transmissions sent to certain destinations outside the United States.

Impact

If enacted, HB263 would formalize and regulate the fees associated with money transmission services targeting these popular remittance corridors. The bill outlines that the money transmission businesses will be responsible for collecting the fee from the sender, which will be remitted to the state's comptroller. This legislative proposal could significantly affect the business operations of money transmission services and the financial costs incurred by individuals sending money abroad, potentially impacting their decisions on remittance practices.

Summary

House Bill 263 proposes the imposition of an eight percent fee on money transmissions originating in Texas that are sent to destinations in Mexico, Central, or South America for personal, family, or household purposes. The intent of the bill is to generate revenue that will be allocated to the indigent health care support account, aimed at providing funding for health care services to needy residents of Texas. This move represents an effort by the state to capture financial flow from local communities that frequently utilize these services.

Contention

There are potential points of contention surrounding HB263, especially regarding the economic impact on families relying on remittances. Critics may argue that imposing a fee could be burdensome for low-income families who depend on these transmissions for financial support, thus raising concerns about equity and access to financial services. Additionally, the efficacy of the funds collected for indigent health care could be questioned, particularly whether this revenue stream is sufficient to address the ongoing needs of health services for disadvantaged populations.