International wire transfers; fee on wire transfers imposed; income tax credit for wire transfer fees paid, authorized; Securities Commission and Revenue Department to administer
Summary
SB77 would impose a new fee on outgoing international electronic wire transfers handled by money transmission businesses in Alabama beginning January 1, 2026. For transfers of $500 or less, the fee would be $7.50; for amounts above $500, the fee would include that base amount plus 1.5% of the excess. Businesses would have to provide customers a receipt showing the fee, report transfer activity to the Alabama Securities Commission, and post a notice informing customers about a possible state income tax credit.
The bill also creates the Sheriffs' Immigration Enforcement and Detainer Fund in the State Treasury. Fee revenue collected from international wire transfers would be deposited into the fund and then distributed quarterly to county sheriffs based on county population. Sheriffs would use the money to cover costs tied to enforcing immigration laws and housing individuals who violate those laws. The Alabama Securities Commission and the Alabama Department of Revenue would be given rulemaking and administrative authority to implement the act.
Impact
SB77 would amend the regulatory obligations of licensed money transmission businesses under Chapter 7A of Title 8 by adding a mandatory fee collection and reporting system for outgoing international wire transfers. It would also create a new state fund and direct the Comptroller to allocate those proceeds to county sheriffs, while authorizing audits of those expenditures. In addition, the bill would create a nonrefundable Alabama income tax credit, capped at $5,000, for taxpayers equal to the international wire transfer fees they paid, subject to documentation requirements and administrative rules from the Department of Revenue.
Sentiment
The bill appears to have had support sufficient to pass the House of Origin by a 24-7 vote, suggesting meaningful backing among legislators. The bill text and caption indicate a policy focus on immigration enforcement funding and taxpayer relief through a corresponding tax credit. No committee transcript is available, so the broader discussion record is limited, but the vote margin indicates the measure was not broadly opposed at that stage.
Contention
The main points of contention are likely the new fee on international remittances and the use of those proceeds to fund immigration enforcement by county sheriffs. Supporters would view the measure as a dedicated funding stream for immigration-related costs, while opponents may see it as a burden on people sending money abroad, including immigrant communities and families who rely on remittances. The tax credit provision may be intended to offset the fee for Alabama taxpayers, but it does not eliminate the upfront cost for all senders, and it is not refundable or carryforward eligible, which may also be a point of concern.
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