The House education budget committee on Wednesday delayed a vote on a bill to put a 4% fee on outgoing international wire transfers.
House Bill 297 by Rep. Jennifer Fidler, R-Silverhill, is part of a GOP priority package of bills targeting illegal immigration.
“There was a lot of cash going out of Alabama that was not creating any wealth in our communities,” Fidler told the Housed education budget committee.
The fee would sunset in June 2029, unless extended by lawmakers.
People who file state income taxes would be able to recoup their fees through a credit.
Otherwise, the funds would be split among a sheriffs’ fund to help offset the cost of enforcing immigration laws, public schools for the education of English language learners and hospitals for uncompensated care expenses.
“The funds will go back to communities to help with the burdens created by immigrant influxes,” Fidler said.
The fiscal note on the bill does not say how much might be generated in fees each year, but Fidler said the revenue is expected to be “no less than $10 million.”
Supporters said immigrants are using wire transfers to send money to the cartels that helped get them over the U.S. border illegally.
House Minority Leader Anthony Daniels, D-Huntsville, objected to that.
“The majority of these folks are hard working men and women,” he said.
Daniels also questioned the distribution of funds under the bill and whether cities were being left out.
Rep. Barbara Drummond, D-Mobile, also questioned whether the bill would hurt businesses that offer wire transfers and drive people over the state line to send them.
Committee chairman Rep. Danny Garrett, R-Trussville, carried the bill over to the committee’s next meeting “so people can get more comfortable.”
“Let’s get it right if we’re going to move down this road,” he said.