HF 601 (LSB 2765YH (3) 91)

HOUSE FILE 601

BY  THOMPSON

A BILL FOR

An Act relating to fees for wire transmissions, and related income tax credits.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  533C.1004  Wire transmission fees.
   1.  For purposes of this section, “wire transmission” means money transmission by wire including transmission within this country or to or from locations abroad.
   2.  In addition to any other fee required by law for a wire transmission, a licensee or the licensee’s authorized delegate shall collect from a customer a fee of five dollars for each wire transmission equal to or less than five hundred dollars, and in addition to such fee, if applicable, an amount equal to two percent of the amount of the wire transmission in excess of five hundred dollars.
   3.  The fees collected under subsection 2 shall be remitted quarterly by the licensee or the licensee’s authorized delegate to the department of revenue in the form and manner prescribed by the department of revenue, in consultation with the department of public safety. All required forms and remittances shall be filed with the department of revenue no later than the fifteenth day of the month following the close of each calendar quarter.
   4.  The department of revenue shall account for all fees remitted under subsection 3 and pay over the same to the office to combat human trafficking established in section 80.45.
   5.  A licensee and the authorized delegate of a licensee furnishing money transfer services shall post a notice, in the form and manner prescribed by the department of public safety, that notifies customers that upon filing an individual income tax return with a valid social security number or a valid taxpayer identification number, the customer shall be entitled to an individual income tax credit equal to the amount of wire transmission fees paid by the customer during the tax year.
   6.  a.  The department of revenue, in consultation with the department of public safety, shall enforce the provisions of this section.
   b.  If a licensee or licensee’s authorized delegate fails to comply with subsection 3, the department of revenue shall notify the superintendent who may suspend or revoke the licensee’s license under section 533C.901, and may issue an order suspending or revoking the designation of an authorized delegate under section 533C.902. Notification of a suspension under this paragraph shall be delivered to the commissioner of public safety. 
   c.  Upon request by the department of revenue, the superintendent may file a claim against the surety bond of the licensee on behalf of the state.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to fees for wire transmissions and related income tax credits.
   Under the bill, in addition to any other fee required by law for a wire transmission, a licensee or the licensee’s authorized delegate shall collect a fee of $5 for each wire transmission equal to or less than $500, and an additional fee equal to 2 percent of any amount in excess of $500. “Wire transmission” is defined in the bill.
   The fees shall be remitted by the licensee quarterly to the department of revenue (department) in the form and manner prescribed by the department in consultation with the department of public safety. All required forms and remittances shall be filed with the department no later than the 15th day of the month following the close of each calendar quarter. The department shall account for all fees remitted and pay over the same to the office to combat human trafficking.
   A licensee furnishing money transfer services shall post a notice to customers that upon filing an individual income tax return with a valid social security number or taxpayer identification number, the customer shall be entitled to an individual income tax credit equal to the amount of wire transmission fees paid by the customer during the tax year.
   The department, in consultation with the department of public safety, shall enforce the provisions of the bill. If a licensee fails to comply with the bill, the department shall notify the superintendent of banking who may suspend or revoke the licensee’s license, and may issue an order suspending or revoking the designation of an authorized delegate. Notification of a suspension shall be delivered to the commissioner of public safety. Upon request by the department, the superintendent may file a claim against the surety bond of the licensee on behalf of the state.