Senate advances money-transmission fee that would fund law‑enforcement 287(g) program after contentious debate

JACKSON — The Mississippi Senate voted to advance a committee substitute to the Money Transmission Modernization Act (SB 28 28), a measure that requires licensed money‑transmission businesses to collect a per‑transaction fee and remit those receipts to a special fund intended for law‑enforcement partnerships under the federal 287(g) immigration program.

Senator Hill, the bill sponsor, said the legislation targets cash wire transfers that move money out of the country and would charge $7.50 on transfers of $500 or less and 1.5% on amounts above $500. "If it's less than $500, it's $7.50. If it's greater than $500, it's 1 and a half percent," Hill said in floor debate, arguing the change helps capture taxable activity that currently escapes state oversight.

Supporters framed the measure as an effort to tax and track cash flows that can be associated with money laundering and certain criminal activity. The committee substitute was adopted on the floor and, after amendments and discussion, the bill advanced by use of the morning roll call.

Opponents raised questions about where the money will go. Senator Blackman warned that the proposal would route substantial revenue into a new 287(g) fund that could benefit federal immigration enforcement. "Half of it would not go to the $2.87 program fund that our law enforcement agencies around the state can already partner with ICE. ICE has a $10,000,000,000 annual budget…" Blackman said, stressing concern about sending state dollars to federal enforcement priorities.

Other senators pressed the sponsors to tighten exemptions for people who rely on cash, including workers on temporary visas who send money home, and to ensure the Department of Revenue and the Banking Department provide administrable rules. The bill contains a reverse repealer and an income‑tax credit mechanism intended to allow customers who file returns to reclaim the fee paid during the taxable year. The sponsor said license suspension and surety‑bond claim provisions remain for noncompliant transmitters.

The version adopted on the floor includes an amendment intended to resolve a dormant‑commerce question raised in committee and a provision directing remittances to a special law‑enforcement 287(g) program fund. The committee substitute passed the Senate by the morning roll call; the measure now moves to further consideration in the House and conference if the House amends it.

The bill’s chief proponents said the fees close a gap in enforcement and taxation; critics urged additional safeguards and a fuller analysis of impacts on immigrant communities and cash‑dependent households. The Senate vote was recorded after a roll call; the committee substitute was adopted and the bill advanced to final consideration by the prescribed procedural motion.