Act Establishing Foreign Wire Transfer Fees

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Summary

An act establishing a fee on foreign wire transfers originating in this state, creating a distribution to law enforcement agencies, and creating a state income tax refund for fees paid on foreign wire transfers.

Act Establishing Foreign Wire Transfer Fees

BE IT ENACTED BY THE LEGISLATURE OF THIS STATE

Section 1. Fees on wire transfers to entities located outside the borders of the United States.

(A) Any vendor providing wire transfer services in this state shall assess a fee of [X] percent (X%) on any wire transfer originating in this state and routed to any recipient located outside the boundaries of the United States of America.

(1)  Once per quarter, as established by the state Department of Revenue, a vendor collecting the fee above shall remit the total value of fees for that quarter to the Department of Revenue.

(2) The fee assessed under this section shall be identified on any transaction receipt issued by the wire transfer vendor to the individual transferring the funds.

(B) The state Department of Revenue shall deposit monies collected under subsection (A) into a separate account termed the “Law Enforcement Cost Offset Fund.” On an annual basis, the department shall distribute the balance of the account to local and county law enforcement agencies through a formula based on the number of arrests and detentions made by the agency involving an alien present illegally and without proper documentation within the borders of the United States.

(1) Before being eligible for a distribution of such funds, a law enforcement agency must apply for the funds on a form that identifies the agency and the number of arrests or detentions made by the agency in the previous year involving a suspect or subject who is unlawfully present in the United States.

(2) The department shall establish an annual deadline by which agencies must apply for the funding under this subsection.

(3) Any law enforcement agency that has a policy of refusing or failing to coordinate with federal immigration authorities or refuses to honor an immigration detainer to the best of their ability, shall be ineligible for any distribution of funds from this account. The attorney general of the state shall identify, on an annual basis, to the Department of Revenue, any agency that fails to meet the requirements of this paragraph.

(C) Any individual charged the fee established in subsection (A) shall be eligible for a full refund of the fee upon submission to the Department of Revenue of their state income tax return (for this state or any state) and copy of any receipt or receipts identifying the fee amount charged. This refund shall be separate from any other tax refund or deduction for which the payer may be eligible.

(1) The department shall deduct the refund amounts from the Law Enforcement Cost Offset Fund prior to making any distributions from the fund in accordance with subsection (B).

(2) A fee paid is no longer eligible for a refund after April 15 of the year following when the fee was paid.

Section 2. Effective date.

This act shall take effect on the date determined by this legislative body.