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Committee hears bill to impose fee on in‑person cash remittances for international transfers; sponsor to carry bill over for further study
Summary
House Bill 297 would impose a 4% fee on certain in‑person cash remittances sent internationally via nonbank money‑transfer services and direct revenues to county education, hospital and sheriff funds; the committee approved a clarifying amendment but carried the bill over for additional member review and information gathering.
House Bill 297, sponsored by Representative Fiddler, would impose a fee on certain in‑person cash transfers sent internationally through money‑transfer businesses that operate outside the traditional banking system. The sponsor described the fee as targeted at cash remittances routed through in‑person services (for example, Western Union or MoneyGram) rather than bank wires, card payments, or digital payment platforms such as PayPal or Venmo.
Representative Fiddler said the bill would impose a 4% fee on covered cash transfers, with revenues distributed to a set of local funds intended to address pressures associated with migrant influxes. The sponsor described the allocation as follows: "2 and a half percent...distributed by the county commission based on the number of English language learners in city and or county schools," "point 5% is distributed to the counties...to the hospitals in that affected county," and "the 1 and a half percent...going to the sheriff's immigration enforcement and detainer fund." The sponsor also described a legislative oversight group and a sunset provision.
Committee members raised questions about the fee's scope, the effect on small businesses that provide money‑transfer services, and potential cross‑border leakage to neighboring states. Representative Kiel and others emphasized that the fee would not apply to bank wires, credit/debit card transactions, or payment processors; Representative Kiel noted tax credit provisions for Alabama taxpayers who pay the fee and retain receipts.
Beau Brown of the Alabama Securities Commission explained registration and annual fees the commission charges to money‑transfer businesses and said actual transmission fees charged to customers are set by the private companies.
Representative Fiddler offered an amendment clarifying the definition of "payment processor" and excluding typical card/online payment facilitation from the fee's scope; the committee passed that amendment by voice vote. After substantial discussion and requests for more information, the chairman exercised prerogative to carry the bill over for additional member briefings and sponsor meetings. The committee did not advance the bill to a committee report at this meeting.
