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HB0132b -1- CSHB 132(L&C)
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CS FOR HOUSE BILL NO. 132(L&C)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - FIRST SESSION
BY THE HOUSE LABOR AND COMMERCE COMMITTEE
Offered: 3/28/25
Referred: Finance
Sponsor(s): REPRESENTATIVE EISCHEID
A BILL
FOR AN ACT ENTITLED
"An Act relating to loans in an amount of $25,000 or less; rela ting to the Nationwide 1
Multistate Licensing System and Registry; relating to deferred deposit advances; and 2
providing for an effective date." 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 4
* Section 1. AS 06.01.020(a) is amended to read: 5
(a) Notwithstanding other provisions of this title, the department may by order 6
authorize state financial institutions, except licensees subjec t to AS 06.20 or [ , ] 7
AS 06.40 [, OR AS 06.50], to exercise any of the powers conferr ed on [UPON], or to 8
be subject to any of the limitations imposed on [UPON], a federally chartered 9
financial institution doing business in this state with deposit s insured by an agency of 10
the federal government if the de partment finds that the exercis e of the power or 11
imposition of the limitation both 12
(1) serves the public convenience and advantage; and 13
(2) equalizes and maintains the quality of competition between state 14
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CSHB 132(L&C) -2- HB0132b
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financial institutions and federally chartered financial institutions. 1
* Sec. 2. AS 06.01.050(3) is amended to read: 2
(3) "financial institution" means an institution subject to th e regulation 3
of the department under this title; in this paragraph, "institu tion" includes a 4
commercial bank, savings bank, cr edit union, premium finance co mpany, small loan 5
company, bank holding company, fi nancial holding company, trust company, savings 6
and loan association, [DEFERRED DEPOSIT ADVANCE LICENSEE UNDER 7
AS 06.50,] and a licensee under AS 06.60; 8
* Sec. 3. AS 06.20.010 is amended by adding new subsections to read: 9
(c) A person, including the agen t or service provider of anoth er person, is a 10
lender subject to the requirements of this chapter if the inter est rate on a loan exceeds 11
the maximum interest rate permitted under AS 06.20.230 and 12
(1) the person directly or indi rectly holds, acquires, or main tains the 13
predominant economic interest in a loan in the amount of $25,000 or less; 14
(2) the person offers, markets, brokers, arranges, facilitates , or services 15
a loan in the amount of $25,000 or less and holds the right, re quirement, or first right 16
of refusal to purchase the loan, a receivable in the loan, or interest in the loan; 17
(3) the person makes a loan dis guised as a personal property s ale or 18
leaseback transaction; or 19
(4) the totality of the circums tances indicate that the person is a lender 20
in a loan in the amount of $25,000 or less and the transaction is structured to evade the 21
requirements of this chapter. 22
(d) For the purposes of this chapter, a loan or transaction ta kes place in the 23
state if the borrower is a resident of the state and the borrow er completes the 24
transaction, either in person or electronically, while physically present in the state. 25
* Sec. 4. AS 06.20 is amended by adding a new section to read: 26
Sec. 06.20.025. National registry. The department may 27
(1) participate in the registry and pay any fees required for 28
participation in the registry; 29
(2) establish by regulation a process for licensees under this chapter to 30
challenge information entered into the registry by the department; 31
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HB0132b -3- CSHB 132(L&C)
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(3) contract with entities designated by the registry to colle ct and 1
maintain records or process fees; 2
(4) adopt regulations to require a licensee to register with t he registry 3
and submit applications, renewa l applications, surety bonds, re ports, and other 4
information and forms to the registry; 5
(5) adopt other regulations under AS 44.62 (Administrative Pro cedure 6
Act) to implement this section; 7
(6) request other information th e department reasonably requir es from 8
an applicant. 9
* Sec. 5. AS 06.20.030(a) is amended to read: 10
(a) Investigation expenses incur red by the department in proce ssing an 11
application for licensure shall be charged to and paid by the a pplicant under 12
AS 06.01.010. At the time of submitting the application to the commissioner, the 13
applicant shall pay to the department o r t h r o u g h t h e r e g i s t r y $1,000 in partial 14
payment of those investigation expenses incurred by the department. 15
* Sec. 6. AS 06.20.030(b) is amended to read: 16
(b) An applicant shall pay to the department or through the registry at the 17
time of submitting an application a sum, in addition to that sp ecified in (a) of this 18
section, of $10,000 [$500] for each location of a branch, Internet website, or 19
mobile application [ A S I N G L E O F F I C E L I C E N S E , ] o r $40,000 [$2,000] for a 20
company [MULTIPLE OFFICE] license as an annual license fee for a perio d 21
terminating on the last day of the current calendar year. 22
* Sec. 7. AS 06.20.090 is repealed and reenacted to read: 23
Sec. 06.20.090. Places of business. (a) To apply for a license under this 24
chapter, an applicant or person must submit a separate application to the department or 25
through the registry for each location, including a branch, Int ernet website, or mobile 26
application, through which the applicant or person conducts business. 27
(b) The department may establish by regulation information tha t must be 28
submitted by an applicant and licensee, the procedures for dete rmining acceptable 29
criteria for approvals and denials, procedures for paying the f ees in the registry, and 30
the effective period of a license. 31
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CSHB 132(L&C) -4- HB0132b
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* Sec. 8. AS 06.20.170 is amended to read: 1
Sec. 06.20.170. Periodic examination. The department shall examine the 2
affairs, business, office, and records of each licensee as often as necessary to carry 3
out the purposes of this chapter [AT LEAST ONCE EVERY 18 MONTHS]. 4
Examination fees are to be charg ed to and paid by the licensee in accordance with 5
AS 06.01.010. The department may maintain an action for the rec overy of the costs in 6
any court of competent jurisdi ction, with recourse to the bonds referred to in 7
AS 06.20.050 and 06.20.080. 8
* Sec. 9. AS 06.20.230 is amended to read: 9
Sec. 06.20.230. Maximum interest permitted. (a) A licensee may lend any 10
sum of money not exceeding $25,000 and may charge, contract for , and receive on the 11
loan interest at a rate not exceeding three percent a month [ON THAT PART OF THE 12
UNPAID PRINCIPAL BALANCE OF A LOAN NOT IN EXCESS OF $850; TWO 13
PERCENT A MONTH ON THE UNPAID PRINCIPAL BALANCE EXCEEDING 14
$850 BUT NOT EXCEEDING $10,000; AND AT A RATE AGREED BY 15
CONTRACT ON THE REMAINDER OF ANY UNPAID PRINCIPAL BALANCE 16
EXCEEDING $10,000 BUT NOT EXCEEDING $25,000]. 17
(b) Notwithstanding the provisions of (a) of this section, a licensee who makes 18
open-end loans under this chapter may charge, contract for, and receive interest at a 19
rate not exceeding three percent a month on that part of the unpaid principal balance of 20
a loan not in excess of [$850; TWO PERCENT A MONTH ON THE UNPAI D 21
PRINCIPAL BALANCE EXCEEDING $850 BUT NOT EXCEEDING $10,000; 22
AND AT A RATE AGREED BY CONTRACT ON THE REMAINDER OF ANY 23
UNPAID PRINCIPAL BALANCE EXCEEDING $10,000 BUT NOT EXCEEDING] 24
$25,000. 25
(c) Interest on loans under (b) of this section shall be compu ted according to 26
the actuarial method on the entir e unpaid principal balance as determined under 27
AS 06.20.285(b). The interest rate on loans under (a) or (b) of this section sha ll be 28
computed by including all fees, costs, and premiums charged und er 29
AS 06.20.260(a)(1) and (3) - (5). 30
* Sec. 10. AS 06.20.310 is amended to read: 31
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HB0132b -5- CSHB 132(L&C)
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Sec. 06.20.310. Effect of illegal interest rate. A loan of the amount or value 1
of $25,000 or less for which a grea ter rate of interest, consid eration, or charge than is 2
permitted by this chapter has been charged, contracted for, or received, wherever 3
made, may not be enforced in the state, and every person partic ipating in such a loan 4
in the state is subject to this chapter. This section does not apply to loans legally made 5
in a state or territory of the United States that has in effect a regulatory small loan law 6
similar in principle to this chapter but does apply to loans made by a person subject 7
to this chapter under AS 06.20.010(c). 8
* Sec. 11. AS 06.20 is amended by adding a new section to read: 9
Sec. 06.20.325. Criminal threats. A licensee under this chapter may not 10
threaten a borrower with criminal prosecution as a result of the borrower's default. 11
* Sec. 12. AS 06.20.330(b) is amended to read: 12
(b) This chapter does not apply to a financial institution chartered under 12 13
U.S.C. 38 (National Bank Act) or 12 U.S.C. 1751 - 1795k (Federa l Credit Union 14
Act) [INDIVIDUAL LOANS BY 15
(1) PAWNBROKERS WHERE SEPARATE AND INDIVIDUAL 16
LOANS DO NOT EXCEED $750; IN THIS PARAGRAPH, "PAWNBROKER" 17
MEANS A PERSON WHO IS REGULATED UNDER AS 08.76.100 – 08.76.590; 18
OR 19
(2) LOAN SHOPS WHERE SEPARATE AND INDIVIDUAL 20
LOANS DO NOT EXCEED $500]. 21
* Sec. 13. AS 06.20.900 is amended by adding a new paragraph to read: 22
(4) "registry" means the Nationwide Multistate Licensing Syste m and 23
Registry. 24
* Sec. 14. AS 08.76.500 is amended to read: 25
Sec. 08.76.500. Exemptions. This chapter does not apply to 26
(1) a financial institution that is subject to the regulation of the 27
department under AS 06, including a commercial bank, savings ba nk, credit union, 28
premium finance company, small loan company, bank holding compa ny, financial 29
holding company, trust company, or savings and loan association [, AND 30
DEFERRED DEPOSIT ADVANCE LICENSEE UNDER AS 06.50]; or 31
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CSHB 132(L&C) -6- HB0132b
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(2) a financial institution organized under federal law. 1
* Sec. 15. AS 45.45.020 is amended by adding a new subsection to read: 2
(b) Interest under AS 45.45.010 - 45.45.070 shall be computed by including 3
all service charges paid by the borrower, debtor, or mortgagor. In this subsection, 4
"service charge" means a fee charged by the lender, creditor, o r mortgagee for 5
opening, renewing, or continuing an account but does not include a late payment fee, a 6
fee for a dishonored check, reasonable attorney fees or other a ctual expenses and costs 7
incurred in connection with the c ollection of a delinquent debt or a foreclosure, or 8
actual expenses and costs incurred in connection with a repossession. 9
* Sec. 16. AS 06.01.035(j); AS 06.20.030(c); AS 06.50.010, 06.50.020, 06.5 0.030, 10
06.50.040, 06.50.050, 06.50.060, 06.50.070, 06.50.080, 06.50.09 0, 06.50.200, 06.50.210, 11
06.50.220, 06.50.230, 06.50.300, 06.50.310, 06.50.320, 06.50.33 0, 06.50.400, 06.50.410, 12
06.50.420, 06.50.430, 06.50.440, 06.50.450, 06.50.460, 06.50.47 0, 06.50.480, 06.50.490, 13
06.50.500, 06.50.510, 06.50.520, 06.50.530, 06.50.540, 06.50.55 0, 06.50.560, 06.50.600, 14
06.50.610, 06.50.900; AS 44.62.330(a)(40); and AS 47.24.900(10)(K) are repealed. 15
* Sec. 17. This Act takes effect July 1, 2025. 16