HB 269: "An Act relating to deferred deposit advances."
00 HOUSE BILL NO. 269 01 "An Act relating to deferred deposit advances." 02 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 03 * Section 1. AS 06.50.010 is amended to read: 04 Sec. 06.50.010. License required. A person, including a person doing 05 business from outside this state, may not engage in the business of making or offering 06 to make deferred deposit advances in this state without having a license under this 07 chapter. A separate license is required for each physical location [OR INTERNET 08 WEBSITE] from which the person conducts the business. 09 * Sec. 2. AS 06.50.310(b) is amended to read: 10 (b) The report must include 11 (1) the total number and dollar amount of advances made by the 12 licensee; 13 (2) the total number of individual customers who received advances; 14 (3) the minimum, maximum, and average amount of advances; 15 (4) the average annual percentage rate of the fee charged for advances
01 and the total amount of fees collected for advances; 02 (5) the average number of days of the advances; 03 (6) the total number and dollar amount of returned checks; 04 (7) the total number and dollar amount of checks paid by advance 05 recipients; 06 (8) the total number and dollar amount of checks charged off as a loss; 07 (9) the total dollar amount of outstanding advances as of the last day of 08 the calendar year; 09 (10) the total number of outstanding advances as of the last day of the 10 calendar year; [AND] 11 (11) the total number of advance recipients who entered into a 12 payment plan offered by the licensee under AS 06.50.550(a)(2); 13 (12) the total number of advance recipients whose advances the 14 licensee assigned to another person for collection; 15 (13) the total number of defaulting advance recipients against 16 whom an action was filed in court by the licensee or by a third party to whom the 17 licensee assigned the advances for collection; 18 (14) the total dollar amount collected by the licensee, or by a third 19 party to whom the licensee assigned the advances for collection, from advance 20 recipients as a result of court action, including settlement of a court action, 21 brought against the advance recipients to collect the advances; and 22 (15) any other information the department determines is required to 23 conduct its review. 24 * Sec. 3. AS 06.50.440 is amended to read: 25 Sec. 06.50.440. Duration of advances. The minimum duration of an advance 26 is 31 [14] days. 27 * Sec. 4. AS 06.50.460(a) is amended to read: 28 (a) Notwithstanding any other provision of law, except for the fee allowed 29 under AS 06.50.510(b)(3) and where federal law provides otherwise, a licensee may 30 only charge 31 (1) a nonrefundable origination fee in an amount not to exceed $5; and
01 (2) a fee that does not exceed $5 [$15] for each $100 of an advance, or 02 15 percent of the total amount of the advance, whichever is less. 03 * Sec. 5. AS 06.50.470(b) is amended to read: 04 (b) A licensee may not renew an advance more than one time [TWO 05 CONSECUTIVE TIMES], after which the licensee shall require the advance recipient 06 to repay the advance in full. 07 * Sec. 6. AS 06.50.500 is amended to read: 08 Sec. 06.50.500. Posted fee notice. A licensee shall post a notice in each 09 business location that discloses the fees that the licensee charges for advances. The 10 fees in the notice must be expressed as a dollar amount and [,] as an annual percentage 11 rate for 31 [14] days for each $100 [, AND AS AN ANNUAL PERCENTAGE RATE 12 FOR 30 DAYS FOR EACH $100]. The notice must also contain any other reasonably 13 necessary information required by the department by regulation. The notice shall be 14 posted so that it is conspicuous to an advance recipient or a potential advance 15 recipient. The lettering in the notice must be legible and at least one inch in height. 16 * Sec. 7. AS 06.50 is amended by adding a new section to article 4 to read: 17 Sec. 06.50.570. Prohibition against Internet and telephone lending. A 18 person, including a person doing business from outside this state, may not make an 19 advance in this state over the Internet or the telephone. 20 * Sec. 8. The uncodified law of the State of Alaska is amended by adding a new section to 21 read: 22 APPLICABILITY. AS 06.50.440, as amended by sec. 3 of this Act, AS 06.50.460(a), 23 as amended by sec. 4 of this Act, AS 06.50.470(b), as amended by sec. 5 of this Act, and 24 AS 06.50.570, as added by sec. 7 of this Act, do not apply to a deferred deposit advance that 25 is made before the effective date of this Act. In this section, "deferred deposit advance" has 26 the meaning given in AS 06.50.990.