The bill amends various sections of Alaska's financial regulations, specifically focusing on loans of $25,000 or less, and introduces new provisions related to financial institutions and the Nationwide Multistate Licensing System and Registry. Key changes include the addition of "mutual savings bank" to the definition of "financial institution," and the establishment of new requirements for lenders, including those who hold or service loans. The bill also clarifies that loans are considered to take place in the state if the borrower is a resident and completes the transaction while present in the state. Additionally, it allows the department to participate in the national registry and sets forth processes for licensees to challenge information entered into the registry.

Significant deletions from current law include the removal of specific licensing exemptions for deferred deposit advance licensees and loan shops, as well as the previous tiered interest rate structure for loans. Instead, the bill establishes a maximum interest rate of three percent per month for loans up to $25,000, with provisions for calculating interest that include all fees and costs. The bill also prohibits licensees from threatening borrowers with criminal prosecution for defaulting on loans. The act is set to take effect on July 1, 2025.

Statutes affected:
SB0039A, AM SB 39, introduced 01/10/2025: 06.01.020, 06.01.050, 06.20.010, 06.20.230, 06.20.030, 06.01.010, 06.20.090, 06.20.170, 06.20.050, 06.20.080, 06.20.285, 06.20.260, 06.20.310, 06.20.900, 08.76.500, 45.45.020
SB0039B, AM CSSB 39(L&C), introduced 02/26/2025: 06.01.020, 06.01.050, 06.20.010, 06.20.230, 06.20.030, 06.01.010, 06.20.090, 06.20.170, 06.20.050, 06.20.080, 06.20.285, 06.20.260, 06.20.310, 06.20.330, 08.76.100, 08.76.590, 06.20.900, 08.76.500, 45.45.020
SB0039C, AM CSSB 39(FIN), introduced 04/11/2025: 06.01.020, 06.01.050, 06.20.010, 06.20.230, 06.20.030, 06.01.010, 06.20.090, 06.20.170, 06.20.050, 06.20.080, 06.20.285, 06.20.260, 06.20.310, 06.20.330, 08.76.100, 08.76.590, U.S.C, 06.20.900, 08.76.500, 45.45.020
SB0039Z, AM Enrolled SB 39, introduced 05/20/2025: 06.01.020, 06.01.050, 06.20.010, 06.20.230, 06.20.030, 06.01.010, 06.20.090, 06.20.170, 06.20.050, 06.20.080, 06.20.285, 06.20.260, 06.20.310, 06.20.330, 08.76.100, 08.76.590, U.S.C, 06.20.900, 08.76.500, 45.45.020