HB 585

HB585 INTRODUCED
1 HB585
2 JPET4NF-1
3 By Representatives Fidler, Robbins, Brown, Kiel, Ross
4 RFD: Financial Services
5 First Read: 05-Mar-26
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JPET4NF-1 03/04/2026 PMG (L)bm 2025-3601
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4 SYNOPSIS:
5Under existing law, money transmission
6businesses, which include businesses that conduct
7electronic wire transfers, must be licensed by the
8Alabama Securities Commission.
9This bill would require money transmission
10businesses to report to the commission certain large or
11suspicious cash transactions.
12This bill would provide criminal penalties for
13knowingly attempting to evade the reporting
14requirements and authorize the commission to assess
15civil penalties against violators of the reporting
16requirements.
17This bill would require money transmission
18businesses to collect a fee on outgoing international
19electronic wire transfers equal to 1.5 percent of the
20total amount of the wire transfer and would require
21that the fees collected be transmitted to the Alabama
22Securities Commission.
23This bill would create the Wire Transfer Fee
24Fund within the Alabama Securities Commission to hold
25all wire transfer fees.
26This bill would require the commission to
27periodically transfer wire transfer fees from the Wire
28Transfer Fee Fund to the Office of Prosecution
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29 Services.
30This bill would require the Office of
31 Prosecution Services to distribute the fee proceeds to
32 all sheriffs in the state to be used to offset costs
33 relating to enforcement of immigration laws.
34This bill would authorize an income tax credit
35 equal to the amount of wire transfer fees paid by
36 taxpayers.
37This bill would require the Department of
38 Revenue to establish a notice to customers who initiate
39 international electronic wire transfers of the ability
40 to be granted a tax credit for wire transfer fees paid
41 by a taxpayer.
42This bill would authorize the Alabama Securities
43 Commission and the Alabama Department of Revenue to
44 administer this act.
45This bill would establish a legislative study
46 commission to ensure that wire transfer fee proceeds
47 are meeting the needs of affected communities and to
48 recommend legislative changes.
49This bill would also repeal the provisions
50 relating the wire transfer fee and income tax credit on
51 December 31, 2030.
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53
54A BILL
55TO BE ENTITLED
56AN ACT
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57
58Relating to money transmissions; to amend Section
59 8-7A-13, Code of Alabama 1975; to require certain money
60 transmission businesses to report and keep records on certain
61 cash transactions; to provide civil and criminal penalties for
62 violations and authorize the Alabama Securities Commission to
63 enforce the reporting requirements; to require money
64 transmission businesses to collect a fee on outgoing
65 international wire transfers and transfer the fees to the
66 Alabama Securities Commission; to create the Wire Transfer Fee
67 Fund within the commission to hold wire transfer fees; to
68 require the commission to distribute the fees to the Office of
69 Prosecution Services for distribution to sheriffs to offset
70 costs relating to enforcing immigration laws; to authorize an
71 income tax credit equal to the amount of fees paid by
72 taxpayers for outgoing international wire transfers; to
73 authorize the Alabama Securities Commission and the Alabama
74 Department of Revenue to administer this act; to establish a
75 legislative study commission to review the disbursement of
76 wire transfer fees; and to provide for the repeal of the
77 provisions of this act relating to the wire transfer fee and
78 income tax credit.
79 BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
80Section 1. Section 8-7A-13, Code of Alabama 1975, is
81 amended to read as follows:
82"§8-7A-13
83(a) A licensee shall file a report to the commission
84 within 15 business days of after any material change in
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85 information provided in a licensee's application.
86(b) A licensee shall file a report with the commission
87 within five business days after the licensee has reason to
88 know of the occurrence of any of the following events:
89(1) The filing of a petition by or against the licensee
90 under the United States Bankruptcy Code for bankruptcy or
91 reorganization.
92(2) The filing of a petition by or against the licensee
93 for receivership, the commencement of any other judicial or
94 administrative proceeding for its dissolution or
95 reorganization, or the making of a general assignment for the
96 benefit of its creditors.
97(3) The commencement of a proceeding to revoke or
98 suspend its license in a state or country in which the
99 licensee engages in business or is licensed.
100(4) The cancellation or other impairment of the
101 licensee's bond or other security.
102(5) A charge or conviction of the licensee or of an
103 executive officer, manager, commission, or other control
104 person of the licensee for a felony.
105(6) A charge or conviction of an authorized delegate of
106 the licensee for a felony.
107(7) The executive officers, managers, directors, an
108 authorized delegate, or persons in control of the licensee are
109 named in any material civil litigation or class action.
110(c) (1) A licensee shall give notice of a proposed
111 change of control within 15 days after learning of the
112 proposed change in control.
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113(2) The commission shall approve a request for change
114 of control if, after investigation, the commission determines
115 that the person or group of persons requesting approval has
116 the competence, experience, character, and general fitness to
117 operate the licensee or person in control of the licensee in a
118 lawful and proper manner and that the public interest will not
119 be jeopardized by the change of control.
120(3) The commission shall approve or deny a request for
121 change of control within 120 days after the notice. If the
122 request has not been approved or denied within 120 days, the
123 request will be deemed to have been approved and will take
124 effect on the first day after the expiration of the 120 days.
125(d) A licensee and an authorized delegate shall
126 maintain a file of all reports required by federal currency
127 reporting, record keeping recordkeeping, and suspicious
128 transaction reporting requirements as set forth in 31 U.S.C.
129 Section § 5311 (1994), and other federal and state laws
130 pertaining to money laundering. If an investigation or other
131 inquiry is initiated by any regulatory authority, the licensee
132 shall immediately notify the commission and forward all
133 records associated with such investigation or inquiry.
134(e)(1) In addition to the requirements in 31 C.F.R. §
135 103.125, all licensees must provide notification to the
136 commission and maintain records of all of the following:
137a. Suspicious cash transactions of aggregate funds of
138 two thousand dollars ($2,000) or more within 30 days of
139 becoming aware of the activity. This reportable activity
140 includes, but is not limited to, any cash transaction that
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141 appears intended to evade the reporting requirements specified
142 in this section. Records associated with these notifications
143 must be maintained for five years from the date of notifying
144 the commission.
145b. Cash transactions of ten thousand dollars ($10,000)
146 or more with the same customer, or on behalf of the same
147 customer, during one business day within 15 days of the
148 activity. Records associated with these notifications must be
149 maintained for five years from the date of notifying the
150 commission.
151c. Any cash transaction that is suspicious as
152 determined by the commission pursuant to regulation or order.
153(2) All cash transactions of one thousand dollars
154 ($1,000) or more must be recorded and maintained for five
155 years from the date of the transaction. Records of these
156 transactions for each year shall be transmitted to the
157 commission at the time of license renewal.
158(3) In every transaction of three thousand dollars
159 ($3,000) or more, licensees shall comply with the requirements
160 of 31 C.F.R. § 1010.415.
161(4)a. Any person that knowingly attempts to evade the
162 reporting requirements specified in this subsection shall be
163 guilty of a Class C felony upon a first offense. Any
164 subsequent violation is a Class B felony.
165b. The commission may assess a civil penalty against
166 any person that violates this section in an amount not to
167 exceed five thousand dollars ($5,000) for each day the
168 violation is outstanding for each individual transaction.
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169(5) Any penalties assessed for violations of this
170 subsection, less the investigative costs incurred by the
171 commission pursuant to Section 8-7A-19(b), shall be remitted
172 to the Wire Transfer Fee Fund."
173Section 2. For the purpose of Sections 2 through 7, the
174 following terms have the following meanings:
175(1) COMMISSION. The Alabama Securities Commission.
176(2) ELECTRONIC WIRE TRANSFER. An electronic transfer of
177 money via a network.
178(3) MONEY TRANSMISSION BUSINESS. Any person required to
179 obtain a license pursuant to Chapter 7A of Title 8, Code of
180 Alabama 1975.
181(4) PAYMENT PROCESSOR. An operator of a payment system
182 acting in a third-party capacity, to the extent that the
183 operator provides processing, clearing, settlement, or other
184 similar services between individuals and businesses for a
185 traceable debt of a good or service in connection with wire
186 transfers, credit card transactions, debit card transactions,
187 stored value transactions, automated clearinghouse transfers,
188 or other similar funds transfers or transactions.
189Section 3. For the purpose of Sections 2 through 7, the
190 following entities or transactions are exempt from Section 4:
191(1) Any transaction by the requester where the money
192 debited is from an account held by, or for the benefit of, the
193 requester at a banking institution or credit union authorized
194 to do business in this state.
195(2) Any business entity authorized by law to do
196 business in this state other than a money transmission
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197 business.
198(3) Payment processors lawfully registered or licensed
199 to conduct business in Alabama.
200(4) Credit card or debit card transfers conducted via
201 the Internet or telephone, including transfers by means of
202 credit cards, debit cards, or ACH.
203(5) Entities exempt or excluded from the license
204 requirements pursuant to Chapter 7A of Title 8, Code of
205 Alabama 1975.
206(6) The sale of money orders.
207(7) Check cashing transactions.
208Section 4. (a)(1) On and after January 1, 2027, each
209 money transmission business shall collect a transaction fee on
210 every outgoing international electronic wire transfer equal to
211 1.5 percent of the amount of the international electronic wire
212 transfer.
213(2) A money transmission business shall provide to each
214 customer a receipt for each international electronic wire
215 transfer originating from this state which clearly delineates
216 the fee incurred pursuant to this subsection.
217(b) There is created within the Alabama Securities
218 Commission the Wire Transfer Fee Fund. Amounts deposited into
219 the fund shall be budgeted and allotted in accordance with
220 Sections 41-4-80 through 41-4-96, Code of Alabama 1975.
221(c) Not later than the 30 days following the close of
222 each calendar quarter, a money transmission business shall do
223 both of the following:
224(1) Remit the fees collected under subsection (a) to
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225 the commission for deposit into the fund by means established
226 by rule or order of the commission.
227(2) Provide to the commission a detailed listing of
228 each individual international electronic wire transfer
229 associated with the fees remitted to the commission, including
230 the date and the amount of the international electronic wire
231 transfer and amount of the fee charged and collected, the
232 country of destination, the address from where the
233 international electronic wire transfer originated, and any
234 additional information required by the commission. The address
235 shall include the street number, street name, municipality,
236 county, and zip code. The commission shall establish by rule
237 or order the means by which the fees and detailed information
238 shall be transmitted to the commission.
239(d)(1) Not later than 45 days following the close of
240 each calendar quarter, the commission shall transfer all fees
241 deposited into the fund to the Office of Prosecution Services
242 to be distributed pursuant to Section 5.
243(2) In addition, the commission shall forward the
244 detailed information received by the commission from money
245 transmission businesses pursuant to subdivision (c)(2) to the
246 Office of Prosecution Services on the same date the fees are
247 transferred under subdivision (1).
248(d) Each money transmission business shall post the
249 notice established pursuant to Section 6(e) in an area
250 accessed by the public where international electronic wire
251 transfers are conducted.
252(e) Except as provided in this act, Chapter 7A of Title
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253 8, Code of Alabama 1975, shall apply.
254(f) The commission shall adopt rules or issue orders to
255 administer this section.
256Section 5. (a) The Office of Prosecution Services
257 shall remit the funds received under Section 4 on a quarterly
258 basis to the Sheriffs' Advancement in Education, Technology,
259 and Training Fund. The Alabama Securities Commission shall
260 report to the Sheriff's Association the pro rata share of
261 transaction fees collected within each county. Based on this
262 report, the Sheriff's Association shall distribute each
263 county's portion of the remitted funds to the appropriate
264 county sheriffs. Funds shall be expended by county sheriffs to
265 offset any costs and expenses incurred by the office of the
266 sheriff on or after January 1, 2027, which are related to the
267 enforcement or assistance with the enforcement of federal or
268 state immigration laws, including the care and housing in the
269 county jail of individuals charged with any suspected
270 violation of federal or state immigration laws.
271(b) The Office of Prosecution Services may retain from
272 the funds received those monies necessary to cover the costs
273 to administer this section but in no event more than two
274 percent of the total funds received.
275(c) Funds received by the Office of Prosecution
276 Services under Section 4 shall be subject to audit by the
277 Department of Examiners of Public Accounts in the same manner
278 as other funds expended to the Office of Prosecution Services.
279(d) Not later than February 1, 2028, and annually
280 thereafter, the Office of Prosecution Services shall submit a
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281 report to the legislative review committee established under
282 Section 7 specifying the amount of funds distributed per
283 quarter to each county sheriff under this section.
284Section 6. (a)(1) For tax years beginning on and after
285 January 1, 2027 and ending December 31, 2030, a credit is
286 allowed against income taxes imposed by Chapter 18 of Title
287 40, Code of Alabama 1975, in the amount of all international
288 electronic wire transfer fees paid by any taxpayer under
289 Section 4 or five thousand dollars ($5,000), whichever is
290 less. The credit must be claimed on the tax return that
291 corresponds with the tax year during which the fees were paid.
292(2) To qualify for the income tax credit, a taxpayer
293 shall submit to the Alabama Department of Revenue in a manner
294 prescribed by the department, by rule, the receipts received
295 under Section 4(a)(2).
296(b) The tax credit shall not be allowed to decrease a
297 taxpayer's liability to less than zero. The credit is not
298 refundable and may not be carried forward. The credit shall be
299 available on a pro-rata basis to entities taxed under 26
300 U.S.C. Subtitle A, Chapter 1, Subchapter S or Subchapter K.
301(c) The Alabama Department of Revenue shall not be
302 required under this section to disclose confidential
303 information subject to Section 40-2A-10, Code of Alabama 1975.
304 However, the department may share information with the
305 commission upon written request in order to aid or assist with
306 any investigation or other action authorized by Chapter 7A of
307 Title 8, Code of Alabama 1975. Additionally, the commission
308 may share information with the department to enforce this act.
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309 The information shared shall be limited to what is necessary
310 to administer this act and shall not be considered public
311 records for purposes of Article 3 of Chapter 12 of Title 36,
312 Code of Alabama 1975. Upon receipt of information from the
313 department, Section 40-2A-10, Code of Alabama 1975, shall
314 apply to the commission and its employees with respect to the
315 use, dissemination, or other handling of the information. The
316 department shall comply with Section 8-7A-21(b), Code of
317 Alabama 1975, as to any information shared by the commission.
318(d) The Alabama Department of Revenue, by rule, may
319 require a money transmission business to provide certifying
320 documents and other information necessary to determine or
321 confirm the tax credit amounts referenced in this section.
322(e) The Alabama Department of Revenue shall establish a
323 standard form to be posted by money transmission businesses
324 which notifies customers that upon filing an Alabama income
325 tax return with either a valid Social Security number or a
326 valid taxpayer identification number, the customer may be
327 entitled to an income tax credit equal to the amount of the
328 electronic wire transfer fees paid by the customer for the
329 international electronic wire transfer.
330(f) The Alabama Department of Revenue shall adopt rules
331 to implement this section.
332Section 7. (a) There is established a legislative
333 review committee to review the expenditures of international
334 electronic wire transfer fee proceeds under Section 5, as
335 contained in audits conducted by the Department of Examiners
336 of Public Accounts. The committee shall examine how proceeds
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337 are being used and, at any time, may make recommendations to
338 the Legislature to redistribute the international electronic
339 wire transfer fee proceeds to better serve the counties or to
340 otherwise amend this act.
341(b) The study committee shall consist of the following
342 members:
343(1) The primary House sponsor and primary Senate
344 sponsor of the legislation establishing this study committee
345 who shall serve as cochairs.
346(2) Three members appointed by the Speaker of the House
347 of Representatives and three members appointed by the
348 President Pro Tempore of the Senate.
349(c) Members shall be entitled to their legislative
350 compensation, per diem, and travel expenses for each day they
351 attend a meeting of the committee in accordance with Section
352 49 of the Constitution of Alabama of 2022.
353(d) Pursuant to Section 36-14-17.1, Code of Alabama
354 1975, the committee shall provide to the Secretary of State a
355 notice of all meetings, the name of each member of the
356 committee, and a copy of its findings and other documents
357 produced throughout the duration of the committee.
358Section 8. Sections 2 through 7 of this act are
359 repealed December 31, 2030.
360Section 9. This act shall become effective on July 1,
361 2026.
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