South Carolina House Bill H4251

South Carolina 2025-2026 Regular Session

• Introduced: 3/27/25
• Refer: 3/27/25

Caption

A BILL TO AMEND THE SOUTH CAROLINA CODE OF LAWS BY ADDING SECTION 35-11-240 SO AS TO PROVIDE CERTAIN FEES MUST BE ASSESSED AGAINST CERTAIN MONEY TRANSFERS, AND TO PROVIDE FOR THE DISBURSEMENT OF THE FEES TO THE ILLEGAL IMMIGRATION ENFORCEMENT FUND; AND BY AMENDING SECTION 23-3-80, RELATING TO THE ILLEGAL IMMIGRATION ENFORCEMENT UNIT, SO AS TO PROVIDE THE ILLEGAL IMMIGRATION ENFORCEMENT FUND MUST BE USED TO FUND THE UNIT'S OPERATIONS.

Summary

H4251 would impose a new fee on money transmission transactions handled by licensed money transmitters, wire transmitters, and their delegates in South Carolina. For transactions of $500 or less, the fee would be $7.50; for amounts above $500, the bill adds 1.5% of the excess. These fees would be collected by the business, remitted quarterly to the Department of Revenue, and deposited into the Illegal Immigration Enforcement Fund. The bill also requires businesses to post a notice telling customers that they may be eligible for a South Carolina income tax credit equal to the fee paid, if they file an individual income tax return with a valid Social Security number or taxpayer identification number. It gives the Department of Revenue enforcement authority, including the ability to suspend licenses for noncompliance, and allows the Banking Commissioner to pursue a surety bond claim on the state’s behalf. The bill further amends the law governing the Illegal Immigration Enforcement Unit so that the fund created by these fees must be used to support the unit’s operations, with appropriations first drawing from that fund before other state sources if needed.

Impact

H4251 would amend Title 35 governing money transmission and Title 23 governing the Illegal Immigration Enforcement Unit. It creates a new dedicated revenue stream from remittance-style money transfers and directs those revenues into a special fund outside the general fund, with no year-end lapse. The bill also changes how the Illegal Immigration Enforcement Unit may be financed by tying its operations to the new fund and preserving the General Assembly’s appropriation role. Affected parties include money transmitters, wire transfer businesses, their delegates, customers using those services, the Department of Revenue, the Banking Commissioner, and SLED’s Illegal Immigration Enforcement Unit.

Sentiment

Based on the bill text and the absence of recorded committee debate or votes, the measure appears to be framed as a funding and enforcement proposal rather than a broadly negotiated compromise. Its stated purpose suggests support from lawmakers prioritizing immigration enforcement and dedicated funding mechanisms. At the same time, the bill’s structure indicates it would place new costs and compliance obligations on money transmission businesses and their customers, which could draw concern from affected industry participants and consumer advocates.

Contention

The main point of contention is likely the policy choice to finance immigration enforcement through fees on money transfers, a mechanism that may be viewed by supporters as a targeted user fee but by critics as a burden on remittance customers, many of whom may be immigrants or low-income workers sending money to family. Another likely issue is the bill’s linkage of the fee revenue to the Illegal Immigration Enforcement Fund and the unit’s operations, which could raise concerns about the use of a financial-services fee for a law-enforcement purpose. Enforcement provisions, including license suspension and surety bond claims, may also be contentious for money transmitters and their delegates.