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HB585 INTRODUCED
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HB585
JPET4NF-1
By Representatives Fidler, Robbins, Brown, Kiel, Ross
RFD: Financial Services
First Read: 05-Mar-26
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JPET4NF-1 03/04/2026 PMG (L)bm 2025-3601
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First Read: 05-Mar-26
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 report to the commission certain large or
suspicious cash transactions.
This bill would provide criminal penalties for
knowingly attempting to evade the reporting
requirements and authorize the commission to assess
civil penalties against violators of the reporting
requirements.
This bill would require money transmission
businesses to collect a fee on outgoing international
electronic wire transfers equal to 1.5 percent of the
total amount of the wire transfer and would require
that the fees collected be transmitted to the Alabama
Securities Commission.
This bill would create the Wire Transfer Fee
Fund within the Alabama Securities Commission to hold
all wire transfer fees.
This bill would require the commission to
periodically transfer wire transfer fees from the Wire
Transfer Fee Fund to the Office of Prosecution
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Transfer Fee Fund to the Office of Prosecution
Services.
This bill would require the Office of
Prosecution Services to distribute the fee proceeds to
all sheriffs in the state to be used to offset costs
relating to enforcement of immigration laws.
This bill would authorize an income tax credit
equal to the amount of wire transfer fees paid by
taxpayers.
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 wire transfer fees paid
by a taxpayer.
This bill would authorize the Alabama Securities
Commission and the Alabama Department of Revenue to
administer this act.
This bill would establish a legislative study
commission to ensure that wire transfer fee proceeds
are meeting the needs of affected communities and to
recommend legislative changes.
This bill would also repeal the provisions
relating the wire transfer fee and income tax credit on
December 31, 2030.
A BILL
TO BE ENTITLED
AN ACT
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AN ACT
Relating to money transmissions; to amend Section
8-7A-13, Code of Alabama 1975; to require certain money
transmission businesses to report and keep records on certain
cash transactions; to provide civil and criminal penalties for
violations and authorize the Alabama Securities Commission to
enforce the reporting requirements; to require money
transmission businesses to collect a fee on outgoing
international wire transfers and transfer the fees to the
Alabama Securities Commission; to create the Wire Transfer Fee
Fund within the commission to hold wire transfer fees; to
require the commission to distribute the fees to the Office of
Prosecution Services for distribution to sheriffs to offset
costs relating to enforcing immigration laws; to authorize an
income tax credit equal to the amount of fees paid by
taxpayers for outgoing international wire transfers; to
authorize the Alabama Securities Commission and the Alabama
Department of Revenue to administer this act; to establish a
legislative study commission to review the disbursement of
wire transfer fees; and to provide for the repeal of the
provisions of this act relating to the wire transfer fee and
income tax credit.
BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:
Section 1. Section 8-7A-13, Code of Alabama 1975, is
amended to read as follows:
"§8-7A-13
(a) A licensee shall file a report to the commission
within 15 business days of after any material change in
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within 15 business days of after any material change in
information provided in a licensee's application.
(b) A licensee shall file a report with the commission
within five business days after the licensee has reason to
know of the occurrence of any of the following events:
(1) The filing of a petition by or against the licensee
under the United States Bankruptcy Code for bankruptcy or
reorganization.
(2) The filing of a petition by or against the licensee
for receivership, the commencement of any other judicial or
administrative proceeding for its dissolution or
reorganization, or the making of a general assignment for the
benefit of its creditors.
(3) The commencement of a proceeding to revoke or
suspend its license in a state or country in which the
licensee engages in business or is licensed.
(4) The cancellation or other impairment of the
licensee's bond or other security.
(5) A charge or conviction of the licensee or of an
executive officer, manager, commission, or other control
person of the licensee for a felony.
(6) A charge or conviction of an authorized delegate of
the licensee for a felony.
(7) The executive officers, managers, directors, an
authorized delegate, or persons in control of the licensee are
named in any material civil litigation or class action.
(c) (1) A licensee shall give notice of a proposed
change of control within 15 days after learning of the
proposed change in control.
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proposed change in control.
(2) The commission shall approve a request for change
of control if, after investigation, the commission determines
that the person or group of persons requesting approval has
the competence, experience, character, and general fitness to
operate the licensee or person in control of the licensee in a
lawful and proper manner and that the public interest will not
be jeopardized by the change of control.
(3) The commission shall approve or deny a request for
change of control within 120 days after the notice. If the
request has not been approved or denied within 120 days, the
request will be deemed to have been approved and will take
effect on the first day after the expiration of the 120 days.
(d) A licensee and an authorized delegate shall
maintain a file of all reports required by federal currency
reporting, record keeping recordkeeping , and suspicious
transaction reporting requirements as set forth in 31 U.S.C.
Section § 5311 (1994), and other federal and state laws
pertaining to money laundering. If an investigation or other
inquiry is initiated by any regulatory authority, the licensee
shall immediately notify the commission and forward all
records associated with such investigation or inquiry.
(e)(1) In addition to the requirements in 31 C.F.R. §
103.125, all licensees must provide notification to the
commission and maintain records of all of the following:
a. Suspicious cash transactions of aggregate funds of
two thousand dollars ($2,000) or more within 30 days of
becoming aware of the activity. This reportable activity
includes, but is not limited to, any cash transaction that
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includes, but is not limited to, any cash transaction that
appears intended to evade the reporting requirements specified
in this section. Records associated with these notifications
must be maintained for five years from the date of notifying
the commission.
b. Cash transactions of ten thousand dollars ($10,000)
or more with the same customer, or on behalf of the same
customer, during one business day within 15 days of the
activity. Records associated with these notifications must be
maintained for five years from the date of notifying the
commission.
c. Any cash transaction that is suspicious as
determined by the commission pursuant to regulation or order.
(2) All cash transactions of one thousand dollars
($1,000) or more must be recorded and maintained for five
years from the date of the transaction. Records of these
transactions for each year shall be transmitted to the
commission at the time of license renewal.
(3) In every transaction of three thousand dollars
($3,000) or more, licensees shall comply with the requirements
of 31 C.F.R. § 1010.415.
(4)a. Any person that knowingly attempts to evade the
reporting requirements specified in this subsection shall be
guilty of a Class C felony upon a first offense. Any
subsequent violation is a Class B felony.
b. The commission may assess a civil penalty against
any person that violates this section in an amount not to
exceed five thousand dollars ($5,000) for each day the
violation is outstanding for each individual transaction.
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violation is outstanding for each individual transaction.
(5) Any penalties assessed for violations of this
subsection, less the investigative costs incurred by the
commission pursuant to Section 8-7A-19(b), shall be remitted
to the Wire Transfer Fee Fund. "
Section 2. For the purpose of Sections 2 through 7, the
following terms have the following meanings:
(1) COMMISSION. The Alabama Securities Commission.
(2) ELECTRONIC WIRE TRANSFER. An electronic transfer of
money via a network.
(3) MONEY TRANSMISSION BUSINESS. Any person required to
obtain a license pursuant to Chapter 7A of Title 8, Code of
Alabama 1975.
(4) PAYMENT PROCESSOR. An operator of a payment system
acting in a third-party capacity, to the extent that the
operator provides processing, clearing, settlement, or other
similar services between individuals and businesses for a
traceable debt of a good or service in connection with wire
transfers, credit card transactions, debit card transactions,
stored value transactions, automated clearinghouse transfers,
or other similar funds transfers or transactions.
Section 3. For the purpose of Sections 2 through 7, the
following entities or transactions are exempt from Section 4:
(1) Any transaction by the requester where the money
debited is from an account held by, or for the benefit of, the
requester at a banking institution or credit union authorized
to do business in this state.
(2) Any business entity authorized by law to do
business in this state other than a money transmission
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business in this state other than a money transmission
business.
(3) Payment processors lawfully registered or licensed
to conduct business in Alabama.
(4) Credit card or debit card transfers conducted via
the Internet or telephone, including transfers by means of
credit cards, debit cards, or ACH.
(5) Entities exempt or excluded from the license
requirements pursuant to Chapter 7A of Title 8, Code of
Alabama 1975.
(6) The sale of money orders.
(7) Check cashing transactions.
Section 4. (a)(1) On and after January 1, 2027, each
money transmission business shall collect a transaction fee on
every outgoing international electronic wire transfer equal to
1.5 percent of the amount of the international electronic wire
transfer.
(2) A money transmission business shall provide to each
customer a receipt for each international electronic wire
transfer originating from this state which clearly delineates
the fee incurred pursuant to this subsection.
(b) There is created within the Alabama Securities
Commission the Wire Transfer Fee Fund. Amounts deposited into
the fund shall be budgeted and allotted in accordance with
Sections 41-4-80 through 41-4-96, Code of Alabama 1975.
(c) Not later than the 30 days following the close of
each calendar quarter, a money transmission business shall do
both of the following:
(1) Remit the fees collected under subsection (a) to
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(1) Remit the fees collected under subsection (a) to
the commission for deposit into the fund by means established
by rule or order of the commission.
(2) Provide to the commission a detailed listing of
each individual international electronic wire transfer
associated with the fees remitted to the commission, including
the date and the amount of the international electronic wire
transfer and amount of the fee charged and collected, the
country of destination, the address from where the
international electronic wire transfer originated, and any
additional information required by the commission. The address
shall include the street number, street name, municipality,
county, and zip code. The commission shall establish by rule
or order the means by which the fees and detailed information
shall be transmitted to the commission.
(d)(1) Not later than 45 days following the close of
each calendar quarter, the commission shall transfer all fees
deposited into the fund to the Office of Prosecution Services
to be distributed pursuant to Section 5.
(2) In addition, the commission shall forward the
detailed information received by the commission from money
transmission businesses pursuant to subdivision (c)(2) to the
Office of Prosecution Services on the same date the fees are
transferred under subdivision (1).
(d) Each money transmission business shall post the
notice established pursuant to Section 6(e) in an area
accessed by the public where international electronic wire
transfers are conducted.
(e) Except as provided in this act, Chapter 7A of Title
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(e) Except as provided in this act, Chapter 7A of Title
8, Code of Alabama 1975, shall apply.
(f) The commission shall adopt rules or issue orders to
administer this section.
Section 5. (a) The Office of Prosecution Services
shall remit the funds received under Section 4 on a quarterly
basis to the Sheriffs' Advancement in Education, Technology,
and Training Fund. The Alabama Securities Commission shall
report to the Sheriff's Association the pro rata share of
transaction fees collected within each county. Based on this
report, the Sheriff's Association shall distribute each
county's portion of the remitted funds to the appropriate
county sheriffs. Funds shall be expended by county sheriffs to
offset any costs and expenses incurred by the office of the
sheriff on or after January 1, 2027, which are related to the
enforcement or assistance with the enforcement of federal or
state immigration laws, including the care and housing in the
county jail of individuals charged with any suspected
violation of federal or state immigration laws.
(b) The Office of Prosecution Services may retain from
the funds received those monies necessary to cover the costs
to administer this section but in no event more than two
percent of the total funds received.
(c) Funds received by the Office of Prosecution
Services under Section 4 shall be subject to audit by the
Department of Examiners of Public Accounts in the same manner
as other funds expended to the Office of Prosecution Services.
(d) Not later than February 1, 2028, and annually
thereafter, the Office of Prosecution Services shall submit a
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thereafter, the Office of Prosecution Services shall submit a
report to the legislative review committee established under
Section 7 specifying the amount of funds distributed per
quarter to each county sheriff under this section.
Section 6. (a)(1) For tax years beginning on and after
January 1, 2027 and ending December 31, 2030, 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 4 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 Alabama Department of Revenue in a manner
prescribed by the department, by rule, the receipts received
under Section 4(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 Alabama Department of Revenue shall not be
required under this 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.
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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 Alabama Department of Revenue, 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 Alabama Department of Revenue 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 Alabama Department of Revenue shall adopt rules
to implement this section.
Section 7. (a) There is established a legislative
review committee to review the expenditures of international
electronic wire transfer fee proceeds under Section 5, as
contained in audits conducted by the Department of Examiners
of Public Accounts. The committee shall examine how proceeds
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of Public Accounts. The committee shall examine how proceeds
are being used and, at any time, may make recommendations to
the Legislature to redistribute the international electronic
wire transfer fee proceeds to better serve the counties or to
otherwise amend this act.
(b) The study committee shall consist of the following
members:
(1) The primary House sponsor and primary Senate
sponsor of the legislation establishing this study committee
who shall serve as cochairs.
(2) Three members appointed by the Speaker of the House
of Representatives and three members appointed by the
President Pro Tempore of the Senate.
(c) Members shall be entitled to their legislative
compensation, per diem, and travel expenses for each day they
attend a meeting of the committee in accordance with Section
49 of the Constitution of Alabama of 2022.
(d) Pursuant to Section 36-14-17.1, Code of Alabama
1975, the committee shall provide to the Secretary of State a
notice of all meetings, the name of each member of the
committee, and a copy of its findings and other documents
produced throughout the duration of the committee.
Section 8. Sections 2 through 7 of this act are
repealed December 31, 2030.
Section 9. This act shall become effective on July 1,
2026.
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