Bill > HB132

This bill makes several significant changes to Alaska's laws regarding small loans and financial institutions. It modifies regulations for loans under $25,000, introduces new provisions for the Nationwide Multistate Licensing System and Registry (NMLS), and eliminates previous regulations for deferred deposit advances (payday loans). Key provisions include expanding the definition of a lender to include entities that hold economic interest in a loan, establishing new licensing requirements for each business location (including websites and mobile apps), increasing license application fees, and simplifying interest rate calculations. The bill removes previous tiered interest rate structures and now allows lenders to charge up to 3% monthly interest on loans up to $25,000, regardless of loan size. Additionally, the legislation prohibits lenders from threatening criminal prosecution for loan defaults, removes certain exemptions for small loan providers, and requires interest calculations to include all service charges. The bill also repeals existing statutes related to deferred deposit advances and will take effect on July 1, 2025, effectively modernizing and streamlining Alaska's small loan regulatory framework.

Budget and Finance, Business and Industry

https://www.akleg.gov/basis/Bill/Detail/34?Root=HB132