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Bill

H 4251

Money transmission fees

2025-2026 Regular Session Introduced by Bobby Cox and 5 co-sponsors

Requires licensed money transmitters to collect a per-transaction fee: $7.50 for $500 or less; 1.5% on the amount over $500, funding the Illegal Immigration Enforcement Fund/Unit.

Referred to Committee on Labor, Commerce and Industry
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Bill Summary · H 4251

Summary — H 4251: Money transmission fees

Status: Introduced 03/27/2025; read and referred to Committee on Labor, Commerce and Industry (03/27/2025); later read and referred to House Ways and Means (07/07/2025). Sponsors: B.J. Cox, T. Moore, Long, M.M. Smith, Lawson, Guest.

Main purpose

To require licensed money transmission businesses (and their delegates) to collect a per-transaction fee on consumer money transfers and to dedicate the resulting revenue to an “Illegal Immigration Enforcement Fund,” which will be used to finance the operations of the State’s Illegal Immigration Enforcement Unit.

Key provisions

  • Fee structure (new Section 35-11-240):
    • Flat fee of $7.50 for each transaction of $500 or less.
    • Plus 1.5% of the portion of the transaction amount that exceeds $500.
  • Remittance and reporting:
    • Licensees must remit collected fees quarterly to the Department of Revenue (forms prescribed by the department).
    • Quarterly filings and payments are due by the 15th day of the month following the close of each calendar quarter.
  • Dedicated use of revenues:
    • All revenues from the fee are deposited into the Illegal Immigration Enforcement Fund.
    • Money in the fund is to be used solely to fund operations of the Illegal Immigration Enforcement Unit (Section 23-3-80), expended only upon appropriation.
    • Unexpended fund balances do not lapse into the general fund; investment earnings stay with the fund.
  • Customer notice and tax-credit information:
    • Licensees must post a department-prescribed notice informing customers that they may claim an income tax credit equal to the fee they paid when filing a state individual income tax return using a valid Social Security number or taxpayer identification number.
  • Enforcement and penalties:
    • The Department of Revenue may enforce filing/remittance requirements; failure to comply can result in suspension of the money transmitter’s license and delegates.
    • The Banking Commissioner is notified of suspensions.
    • The Banking Commissioner may claim against a licensee’s surety bond at the Department of Revenue’s request.
  • Effective date: On approval by the Governor.

Who is affected

  • Primary: licensed money transmitters, wire transmitters, and their delegates operating in the state (they must collect, report, and remit the fee and display required notices).
  • Secondary: customers sending money transfers (will pay the fee).
  • Fiscal/administrative: Department of Revenue (collection and enforcement duties), Banking Commissioner (bond claims and license implications), Illegal Immigration Enforcement Unit (primary recipient of funds).

Potential fiscal and operational impacts

  • Revenue generation: Establishes a dedicated revenue stream for immigration enforcement operations; exact receipts depend on transfer volumes and amounts.
  • Consumer cost: Increases the cost of using money transmission services (flat $7.50 for smaller transfers; larger transfers incur additional 1.5% on amount > $500).
  • Compliance burden: Requires systems changes and administrative work for remitters (collection, reporting, notices).
  • Enforcement risk: License suspensions and surety bond claims create compliance exposure for transmitters.

Procedural/timeline notes

  • Bill introduced 03/27/2025 and has been referred to relevant committees; final enactment would occur only if passed by the legislature and signed by the Governor. The bill text specifies immediate effect upon the Governor’s approval.

Compiled from official sources — confirm details with the bill’s official record.

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