House Bill 585 Alabama 2026 Session

Summary

Primary Sponsor

Jennifer FidlerRepresentative

Republican

Session

2026 Regular Session

Title

Money transmissions, transaction fee imposed for certain outgoing international wire transfers, income tax credit established to offset transaction fees imposed on taxpayer, reporting of certain suspicious cash transactions required, Securities Commission to enforce

Summary

HB585 would regulate money transmission in Alabama by requiring reporting of large and suspicious cash transactions, adding a 1.5% fee on outgoing international wire transfers with a state income tax credit for the fees, and directing the funds to support immigration-enforcement costs paid to county sheriffs, with a sunset in 2030.

What This Bill Does

Licensed money transmission businesses would have to report large or suspicious cash transactions to the Alabama Securities Commission and maintain records, with penalties for violations. The bill would charge a 1.5 percent fee on outgoing international electronic wire transfers and send those fees to a new Wire Transfer Fee Fund at the Securities Commission. The fund would be distributed quarterly to the Office of Prosecution Services and then to county sheriffs through the Sheriff’s Association to offset immigration enforcement costs. It would also authorize an income tax credit against Alabama income tax for the amount of these fees paid, up to $5,000 per taxpayer for 2027 through 2030, with rules for claiming the credit; the act would sunset on December 31, 2030 and be administered by the SEC and the Department of Revenue.

Who It Affects

• Money transmission businesses licensed in Alabama must report large and suspicious cash transactions and could face penalties for noncompliance.
• Taxpayers who pay the 1.5% fee on outgoing international wire transfers may be eligible for a nonrefundable income tax credit up to $5,000 (for 2027-2030).
• Alabama Securities Commission would administer the new fund, oversee reporting, and issue rules.
• Department of Revenue would administer the tax credit program, issue notices to customers, and share information with the Commission as needed.
• Office of Prosecution Services would receive the fees to distribute to county sheriffs to offset costs of immigration enforcement.
• County sheriffs would receive funds to offset costs related to enforcing immigration laws, including housing of individuals charged with suspected violations.
• A legislative study committee would review how the funds are spent and may recommend changes or redistribution.
• The act would become effective July 1, 2026 and provisions related to the fee and credit would repeal after December 31, 2030.

Key Provisions

• Imposes a 1.5% fee on outgoing international electronic wire transfers and requires receipts and customer notices about the fee.
• Creates the Wire Transfer Fee Fund within the Alabama Securities Commission to hold and manage these fees.
• Requires quarterly remittance of fees to the Office of Prosecution Services for distribution to county sheriffs via the Sheriff’s Association to offset immigration enforcement costs.
• Authorizes an income tax credit against Alabama income taxes for the amount of the wire transfer fees paid, up to $5,000 per taxpayer, for tax years 2027-2030; credit is nonrefundable and not carryable; pro-rated for entities taxed as S or K corporations.
• Provides exemptions from the fee/reporting requirements for certain types of transactions (eg, certain bank accounts, payment processors, internet credit/debit transfers, money orders, and check cashing).
• Requires detailed reporting of each international transfer and the destination country, amount, origin, and fee; quarterly reporting to the SEC; and posting of customer notices.
• Establishes penalties for knowingly evading reporting requirements (Class C felony on first offense, Class B felony on subsequent offenses) and allows civil penalties up to $5,000 per day per violation with funds going to the Wire Transfer Fee Fund.
• Authorizes information sharing between the Alabama Securities Commission and the Department of Revenue for administration and enforcement, with confidentiality protections.
• Establishes a legislative study committee to review expenditures of the fee proceeds and consider redistribution; includes specified members and reporting duties.
• Repeals the wire transfer fee and tax credit provisions on December 31, 2030; sets July 1, 2026 as the effective date for the act.

AI-generated summary using openai/gpt-5-nano-2025-08-07 on Mar 5, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Businesses & Financial Institutions