The House Finance Committee voted Sunday to advance Senate Bill 39, a bill that would remove the payday‑loan exemption from Alaska's 36% APR cap under the state's small‑lending law.

Senator John Dunbar, sponsor of SB 39, told the committee the measure mirrors language debated last year and that the House previously approved a similar bill 38‑2. "This is a nearly identical bill that removes the exemption for payday loans from the 36% APR cap that's currently in our small lending act," Dunbar said, adding that staff had distributed written responses to questions raised in earlier hearings.

Representative David Bynum asked whether market alternatives — including bank products mentioned in the committee packet — were already meeting borrower needs and whether removing payday loans was necessary if lower‑cost options existed. "If the market is already driving to provide an alternative low cost option, why would we be regulating and or wanting to remove also that other free market option, meaning payday loans?" Bynum asked.

Dunbar responded that while alternative products such as Chime or bank offerings may exist, payday lenders have been shown in public testimony to trap consumers in cycles of debt. "I'm hopeful that there will be a market based solution," Dunbar said, "but 19 other states have done this. None of them have repealed it. I think it's worth our time to offer those protections to our citizens."

The committee had no amendments on the floor; a member moved to report SB 39 (work order 34‑LS0357\I) out of committee with individual recommendations and the attached fiscal notes. An objection was raised by a committee member but withdrawn after the member said they intended to offer technical amendments later; the chair announced no further objections and the bill was advanced. The Division of Banking's chief of examination, Tracy Reno, was noted as being available online to answer technical questions.

With the committee's decision to advance SB 39, the bill will move forward under the committee's individual recommendations and with the fiscal materials sent to the record.