Bill > SB39

This bill makes several significant changes to financial regulations in Alaska, primarily focusing on loans under $25,000 and updating licensing and lending requirements. The bill modifies existing laws to expand the definition of financial institutions, introduce a new national registry (the Nationwide Multistate Licensing System and Registry) for tracking lenders, and standardize interest rate calculations. Key provisions include establishing that a loan takes place in the state if the borrower is a resident and completes the transaction while physically present in Alaska, requiring separate applications for each business location including websites and mobile apps, and allowing lenders to charge up to 3% monthly interest on loans up to $25,000. The bill also prohibits lenders from threatening borrowers with criminal prosecution for loan defaults and removes previous exemptions for certain types of small loans. Additionally, the bill repeals existing regulations for deferred deposit advance licensees (payday lenders) and modifies how interest and service charges are calculated, with the changes set to take effect on July 1, 2025. These updates aim to provide more consistent oversight of small loan lending practices and protect borrowers from predatory lending tactics.

Budget and Finance, Business and Industry

https://www.akleg.gov/basis/Bill/Detail/34?Root=SB39