SSHB 164: "An Act relating to motor vehicle dealers and to agents for motor vehicle buyers; and providing for an effective date."
00SPONSOR SUBSTITUTE FOR HOUSE 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. (a) A person who does 06 business as a dealer in the state may not offer to sell or sell a motor vehicle as a new 07 or current model motor vehicle unless the motor vehicle retains the manufacturer's 08 certificate of origin. 09 (b) A person who does business as a dealer in the state may not offer to sell 10 or sell a motor vehicle as a new or current model motor vehicle having a 11 manufacturer's warranty unless the dealer has a current sales and service agreement 12 with the manufacturer and the agreement requires the dealer, upon demand of the 13 motor vehicle buyer, to perform or arrange for, within a reasonable distance of the 14 dealer's place of business in the state, the repair and replacement work required of the
01 manufacturer under the warranty. 02 * Sec. 2. AS 08.66.030 is amended to read: 03 Sec. 08.66.030. FORM OF APPLICATION. The Department of Public Safety 04 shall prescribe and furnish the form of application for dealer registration. The 05 application must contain 06 (1) the name under which the business is conducted; 07 (2) the location of business; 08 (3) the name and address of all persons having an interest in the 09 business [,] and, in the case of a corporation, the application shall contain the name 10 and address of the two principal officers; 11 (4) the name and make of all vehicles handled; 12 (5) whether or not used vehicles are handled; 13 (6) a statement that the applicant is a bona fide dealer in motor 14 vehicles, trailers, or semi-trailers with an established business at the location given; 15 (7) if the applicant sells a motor vehicle as a new or current model 16 motor vehicle having a manufacturer's warranty, the name of the manufacturer 17 of the motor vehicle and the date and duration of the applicant's sales and service 18 agreement with the manufacturer; 19 (8) other information the Department of Public Safety requires to 20 administer this chapter. 21 * Sec. 3. AS 08.66.080 is amended to read: 22 Sec. 08.66.080. PENALTIES. A dealer who fails to register and file a bond 23 as required by this chapter shall pay a penalty of $100. A dealer who wilfully violates 24 a provision of this chapter is guilty of a class B misdemeanor [, AND UPON 25 CONVICTION IS PUNISHABLE BY A FINE OF NOT MORE THAN $300]. 26 * Sec. 4. AS 45.45 is amended by adding new sections to read: 27 Sec. 45.45.450. BUYER'S AGENT CONTRACT REQUIRED. (a) A person 28 may not do business in the state by negotiating on behalf of a buyer the purchase of 29 a motor vehicle from a motor vehicle dealer unless the person has a written contract 30 with the buyer. 31 (b) The contract required by (a) of this section must include a description of
01 the specific services to be provided by the buyer's agent, the date when the buyer's 02 agent will provide the services, and a description of the fees that the buyer's agent will 03 charge, including any fee that the buyer is to pay before the motor vehicle is delivered 04 to the buyer. 05 Sec. 45.45.455. PURCHASE AGREEMENT. A buyer's agent shall arrange 06 for the buyer's purchase agreement with the seller to provide all warranty information, 07 including the warranty expiration date, mileage limitations, and other restrictions. The 08 warranty information must be specific to the motor vehicle being purchased. 09 Sec. 45.45.460. 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. 45.45.465. 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. 45.45.470. 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. 45.45.475. 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. 45.45.480. 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; 05 (5) a copy of the purchase agreement between the buyer and the seller; 06 and 07 (6) a copy of any service agreement between the manufacturer and the 08 motor vehicle dealer. 09 Sec. 45.45.485. PENALTY. A person who with criminal negligence violates 10 AS 45.45.450 - 45.45.490 is guilty of a class B misdemeanor. 11 Sec. 45.45.490. DEFINITIONS. In AS 45.45.450 - 45.45.490, 12 (1) "buyer's agent" means a person who does business in the state by 13 negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle 14 dealer; 15 (2) "motor vehicle dealer" means a person who is engaged in the 16 business of buying, selling, or dealing in new or used motor vehicles and maintains an 17 inventory of motor vehicles for sale. 18 * Sec. 5. AS 45.50.471(b) is amended by adding new paragraphs to read: 19 (33) violating AS 08.66 (motor vehicle dealers); 20 (34) violating AS 45.45.450 - 45.45.490 (motor vehicle buyers' agents). 21 * Sec. 6. This Act takes effect immediately under AS 01.10.070(c).