March 22, 2006
The Atlanta Journal-Constitution
Carlos Campos

A Georgia House plan to tack a fee onto wire transfers sent home by illegal immigrants is under attack from several quarters and may fail to get Senate approval.

House Bill 1238, sponsored by Rep. Tom Rice (R-Norcross), would impose a 5 percent fee on any wire transfer of money when the customer cannot show evidence of legal status in the United States. Immigrants in Georgia sent home nearly $1 billion to other countries in 2004, according to one industry estimate.

Rice estimated Tuesday the bill would bring in about $41 million into the state coffers, and he said the bill is designed to recoup a small portion of the health care costs incurred by illegal immigrants — although the state is prohibited from earmarking the money specifically for that purpose. It passed the House on Feb. 14 by a 106-60 vote.

In a hearing Tuesday before the Senate Banking and Financial Institutions Committee, HB 1238 drew criticism from wire transfer companies, a state grocers association and a public interest law center that says the bill is unconstitutional.

Sen. Bill Hamrick (R-Carrollton), the committee chairman, questioned whether the Senate would have the time to explore the concerns that were raised before the legislative session ends, a statement Rice said bodes poorly for the bill's prospects. The General Assembly has only six working days remaining to pass dozens of bills.

A Western Union representative presented the committee a 42-page legal opinion from its lawyers at Sutherland Asbill & Brennan examining the legality of HB 1238. The report essentially contends that the bill violates provisions in the U.S. Constitution by infringing on the federal government's purview over immigration law. A public interest law group called Georgia Appleseed said only the federal government has the authority to regulate commerce with foreign nations.

Kathy Kuzava, a lobbyist for the Georgia Food Industry Association, testified that grocers are concerned about the bill because store clerks who handle wire transfers inside stores will be required to ask for documents to verify a customer's legal status.

Committee member Sen. John Bulloch (R-Ochlocknee), a South Georgia farmer, also joined in the chorus of critics. Bulloch said farmers throughout the state are having a hard time finding migrant workers and suggested legislation like HB 1238 intended to "penalize" illegal immigrants might be partly to blame.

Rice insisted that the legislation is not a punitive measure, but a "small recoupment" of the cost of providing indigent health care to illegal immigrants. Rice also said that it's not unusual for the Legislature to pass laws that opponents claim are unconstitutional.

"I reject that argument until it's proven to be unconstitutional by an authoritative court of law," Rice said after the committee meeting.

Sen. Sam Zamarripa (D-Atlanta), an outspoken critic of legislation aimed to crack down on illegal immigration, said he was pleased that the bill appears to be in trouble.

"What it really does is it punishes people who work hard for minimum wage to send money home to their families," Zamarripa said.