HB 164: "An Act relating to motor vehicle dealers and to agents for motor vehicle buyers; and providing for an effective date."
00HOUSE BILL NO. 164 01 "An Act relating to motor vehicle dealers and to agents for motor vehicle 02 buyers; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.66 is amended by adding a new section to read: 05 Sec. 08.66.015. SALE OF MOTOR VEHICLE WITH WARRANTY. A 06 person who does business as a dealer in the state may not offer to sell or sell a motor 07 vehicle as a new or current model motor vehicle having a manufacturer's warranty 08 unless the dealer has a current sales and service agreement with the manufacturer and 09 the agreement requires the dealer, upon demand of the motor vehicle buyer, to perform 10 or arrange for, within a reasonable distance of the dealer's place of business in the 11 state, the repair and replacement work required of the manufacturer under the warranty. 12 * Sec. 2. AS 08.66.030 is amended to read: 13 Sec. 08.66.030. FORM OF APPLICATION. The Department of Public Safety 14 shall prescribe and furnish the form of application for dealer registration. The
01 application must contain 02 (1) the name under which the business is conducted; 03 (2) the location of business; 04 (3) the name and address of all persons having an interest in the 05 business [,] and, in the case of a corporation, the application shall contain the name 06 and address of the two principal officers; 07 (4) the name and make of all vehicles handled; 08 (5) whether or not used vehicles are handled; 09 (6) a statement that the applicant is a bona fide dealer in motor 10 vehicles, trailers, or semi-trailers with an established business at the location given; 11 (7) if the applicant sells a motor vehicle as a new or current model 12 motor vehicle having a manufacturer's warranty, the name of the manufacturer 13 of the motor vehicle and the date and duration of the applicant's sales and service 14 agreement with the manufacturer; 15 (8) other information the Department of Public Safety requires to 16 administer this chapter. 17 * Sec. 3. AS 08.66.080 is amended to read: 18 Sec. 08.66.080. PENALTIES. A dealer who fails to register and file a bond 19 as required by this chapter shall pay a penalty of $100. A dealer who wilfully violates 20 a provision of this chapter is guilty of a class B misdemeanor [, AND UPON 21 CONVICTION IS PUNISHABLE BY A FINE OF NOT MORE THAN $300]. 22 * Sec. 4. AS 08.66.090 is amended to read: 23 Sec. 08.66.090. DEFINITIONS [DEALER DEFINED]. In this chapter, 24 (1) "current model motor vehicle" means a motor vehicle that is 25 the current model made by the manufacturer and that has been sold one or more 26 times before the dealer proposes to sell it; 27 (2) "dealer" means a person, or an agent, broker, or salesperson 28 [SALESMAN] of a person who is engaged in buying, selling, or dealing in new or 29 used motor vehicles, trailers, or semi-trailers in the state. 30 * Sec. 5. AS 45.45 is amended by adding new sections to read: 31 Sec. 45.45.450. BUYER'S AGENT CONTRACT REQUIRED. (a) A person
01 may not do business in the state by negotiating on behalf of a buyer the purchase of 02 a motor vehicle from a motor vehicle dealer unless the person has a written contract 03 with the buyer. 04 (b) The contract required by (a) of this section must include a description of 05 the specific services to be provided by the buyer's agent, the date when the buyer's 06 agent will provide the services, and a description of the fees that the buyer's agent will 07 charge, including any fee that the buyer is to pay before the motor vehicle is delivered 08 to the buyer. 09 Sec. 45.45.455. FEES OF BUYER'S AGENT. (a) A buyer's agent may not 10 collect a fee from a buyer before the agent and the buyer enter into the contract 11 required by AS 45.45.450. 12 (b) A buyer's agent may not calculate the fee of the buyer's agent as a 13 percentage of the motor vehicle purchase price or of the savings achieved by the agent 14 for the buyer on the purchase of the motor vehicle. 15 (c) Until the motor vehicle is delivered to the buyer, a buyer's agent shall hold 16 in trust in a bank account a fee that the agent receives before the buyer receives the 17 motor vehicle. 18 Sec. 45.45.460. OWNERSHIP INTEREST PROHIBITED. A buyer's agent 19 may not own an interest in the motor vehicle that is the subject of the purchase that 20 the agent is negotiating for the buyer. 21 Sec. 45.45.465. CERTAIN COMPENSATION PROHIBITED. A buyer's 22 agent may not accept a rebate, kickback, commission, or other form of compensation 23 from a financial institution, motor vehicle dealer, or other person, except the buyer, on 24 a motor vehicle purchase that the agent negotiates for a buyer. 25 Sec. 45.45.470. DUAL AGENCY PROHIBITED. When representing a buyer, 26 a buyer's agent may not act as an agent for the motor vehicle dealer. 27 Sec. 45.45.475. RECORDS OF BUYER'S AGENT. A buyer's agent shall 28 maintain complete records of each motor vehicle purchase the agent negotiates, 29 including the purchase arrangements and monetary transactions. The records must 30 include 31 (1) copies of advertisements, brochures, and pamphlets issued, used, or
01 distributed by the buyer's agent during the sales transaction; 02 (2) the original contract between the buyer's agent and the buyer; 03 (3) copies of any purchase orders issued by the buyer's agent; 04 (4) evidence of the delivery of the motor vehicle to the buyer; and 05 (5) copies of any service agreement between the manufacturer and the 06 motor vehicle dealer. 07 Sec. 45.45.480. PENALTY. A person who violates AS 45.45.450 - 45.45.490 08 is guilty of a class B misdemeanor. 09 Sec. 45.45.490. DEFINITIONS. In AS 45.45.450 - 45.45.490, 10 (1) "buyer's agent" means a person who does business in the state by 11 negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle 12 dealer; 13 (2) "motor vehicle dealer" means a person who is engaged in the 14 business of buying, selling, or dealing in new or used motor vehicles and maintains an 15 inventory of motor vehicles for sale. 16 * Sec. 6. AS 45.50.471(b) is amended by adding new paragraphs to read: 17 (33) violating AS 08.66 (motor vehicle dealers); 18 (34) violating AS 45.45.450 - 45.45.490 (motor vehicle buyers' agents). 19 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).