HCS CSSB 105(JUD) AM H: "An Act relating to motor vehicle dealers and to agents for motor vehicle buyers; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 105(JUD) am H 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 12 (1) the dealer has a current sales and service agreement with the 13 manufacturer and the agreement requires the dealer, upon demand of the motor vehicle 14 buyer, to perform or arrange for, within a reasonable distance of the dealer's place of
01 business in the state, the repair and replacement work required of the manufacturer 02 under the warranty; or 03 (2) the dealer offers to give the buyer a rebate to cover the repair and 04 replacement work that the dealer cannot perform or arrange for within a reasonable 05 distance of the dealer's place of business. 06 * Sec. 2. AS 08.66.030 is amended to read: 07 Sec. 08.66.030. FORM OF APPLICATION. The Department of Public Safety 08 shall prescribe and furnish the form of application for dealer registration. The 09 application must contain 10 (1) the name under which the business is conducted; 11 (2) the location of business; 12 (3) the name and address of all persons having an interest in the 13 business [,] and, in the case of a corporation, the application shall contain the name 14 and address of the two principal officers; 15 (4) the name and make of all vehicles handled; 16 (5) whether or not used vehicles are handled; 17 (6) a statement that the applicant is a bona fide dealer in motor 18 vehicles, trailers, or semi-trailers with an established business at the location given; 19 (7) if the applicant sells a motor vehicle as a new or current model 20 motor vehicle having a manufacturer's warranty, the name of the manufacturer 21 of the motor vehicle and the date and duration of the applicant's sales and service 22 agreement with the manufacturer; 23 (8) other information the Department of Public Safety requires to 24 administer AS 08.66.010 - 08.66.090 [THIS CHAPTER]. 25 * Sec. 3. AS 08.66.080 is amended to read: 26 Sec. 08.66.080. PENALTIES. A dealer who fails to register and file a bond 27 as required by AS 08.66.010 - 08.66.090 is guilty of a violation [THIS CHAPTER 28 SHALL PAY A PENALTY OF $100]. A dealer who knowingly [WILFULLY] 29 violates a provision of AS 08.66.010 - 08.66.090 [THIS CHAPTER] is guilty of a 30 class A misdemeanor [, AND UPON CONVICTION IS PUNISHABLE BY A FINE 31 OF NOT MORE THAN $300].
01 * Sec. 4. AS 08.66.090 is amended to read: 02 Sec. 08.66.090. DEALER DEFINED. In AS 08.66.010 - 08.66.090, [THIS 03 CHAPTER] "dealer" means a person, or an agent, broker, or salesman of a person who 04 is engaged in buying, selling, or dealing in new or used motor vehicles, trailers, or 05 semi-trailers in the state, but does not include a buyer's agent when acting in the 06 capacity of a buyer's agent. In this section, "buyer's agent" has the meaning 07 given in AS 08.66.350. 08 * Sec. 5. AS 08.66 is amended by adding new sections to read: 09 ARTICLE 2. BUYERS' AGENTS. 10 Sec. 08.66.200. REGISTRATION OF BUYER'S AGENT. A person may not 11 do business in the state by negotiating on behalf of a buyer the purchase of a motor 12 vehicle from a motor vehicle dealer unless the person is registered with the Department 13 of Public Safety. 14 Sec. 08.66.210. APPLICATION, BOND, AND FEE. (a) In order to register 15 under AS 08.66.200, a person shall file with the department an application, a bond 16 required by AS 08.66.240, and an application fee established by the department by 17 regulation. 18 (b) The department shall prescribe and furnish the form of application for the 19 registration. The application must contain 20 (1) the name under which the business is conducted; 21 (2) the address of the main office of the business; 22 (3) the name and address of all persons having an interest in the 23 business, and in the case of a corporation the application shall contain the name and 24 address of the two principal officers; and 25 (4) other information the department requires. 26 Sec. 08.66.220. DEPARTMENT APPROVAL. The department shall approve 27 an application for registration under AS 08.66.210 if the application contains the 28 information required by AS 08.66.210 and the bond complies with AS 08.66.240. 29 Sec. 08.66.230. RENEWAL OF REGISTRATION. A buyer's agent shall 30 renew the registration required by AS 08.66.200 every two years by filing with the 31 department a request for renewal, the bond required by AS 08.66.240, and a renewal
01 fee established by the department by regulation. 02 Sec. 08.66.240. BOND. (a) An applicant for registration under AS 08.66.210 03 or for renewal of a registration under AS 08.66.230 shall file with the application or 04 request for renewal, and shall maintain in force while registered, a $10,000 bond that 05 is in favor of the state and that is executed by an authorized corporate surety approved 06 by the department. 07 (b) Instead of the corporate surety bond required by (a) of this section, the 08 department may, in the department's sole discretion, accept a bond in the same amount 09 with at least two individual sureties. A surety shall provide as security real property 10 that has a fair market value that is equal to two times the amount of the bond. The 11 department shall investigate as necessary the actual financial responsibility of the 12 individual sureties. 13 (c) The bond required by this section is conditioned on the applicant 14 complying with AS 08.66.200 - 08.66.350 and not committing fraud or making 15 fraudulent representations in the course of doing business as a buyer's agent. 16 (d) A surety may cancel the bond after giving the department 30 days' advance 17 written notice. Cancellation does not relieve a surety of liability arising on the bond 18 from a purchase negotiated by the bonded buyer's agent before cancellation or a 19 liability that accrues against the bond before cancellation. The department shall retain 20 the cancelled bond on file. 21 Sec. 08.66.250. ACTION ON BOND. If a person suffers loss or damage by 22 reason of a buyer's agent, or a person doing business as a buyer's agent, violating 23 AS 08.66.200 - 08.66.350 or committing fraud or making fraudulent representations 24 in the course of doing business as a buyer's agent, the person may bring an action 25 against the buyer's agent and the surety upon the bond. The aggregate liability of the 26 surety may not exceed the amount of the bond. 27 Sec. 08.66.260. BUYER'S AGENT CONTRACT REQUIRED. (a) Before a 28 buyer's agent negotiates on behalf of a buyer the purchase of a motor vehicle from a 29 motor vehicle dealer, the buyer's agent must have a written contract with the buyer. 30 (b) The contract required by (a) of this section must include a description of 31 the specific services to be provided by the buyer's agent, the date when the buyer's
01 agent will provide the services, and a description of the fees that the buyer's agent will 02 charge, including any fee that the buyer is to pay before the motor vehicle is delivered 03 to the buyer. 04 Sec. 08.66.270. PURCHASE AGREEMENT. A buyer's agent shall arrange 05 for the buyer's purchase agreement with the dealer to provide all warranty information, 06 including the warranty expiration date, mileage limitations, and other restrictions. The 07 warranty information must be specific to the motor vehicle being purchased. 08 Sec. 08.66.280. FEES OF BUYER'S AGENT. (a) A buyer's agent may not 09 collect a fee from a buyer before the agent and the buyer enter into the contract 10 required by AS 08.66.260. 11 (b) A buyer's agent may not calculate the fee of the buyer's agent as a 12 percentage of the motor vehicle purchase price or of the savings achieved by the agent 13 for the buyer on the purchase of the motor vehicle. 14 (c) Until the motor vehicle is delivered to the buyer, a buyer's agent shall hold 15 in trust in a bank account a fee that the agent receives before the buyer receives the 16 motor vehicle. 17 Sec. 08.66.290. OWNERSHIP INTEREST PROHIBITED. A buyer's agent 18 may not own an interest in the motor vehicle that is the subject of the purchase that 19 the agent is negotiating for the buyer. 20 Sec. 08.66.300. CERTAIN COMPENSATION PROHIBITED. A buyer's 21 agent may not accept a rebate, kickback, commission, or other form of compensation 22 from a financial institution, motor vehicle dealer, or other person, except the buyer, on 23 a motor vehicle purchase that the agent negotiates for a buyer. 24 Sec. 08.66.310. DUAL AGENCY PROHIBITED. When representing a buyer, 25 a buyer's agent may not act as an agent for the motor vehicle dealer. 26 Sec. 08.66.320. RECORDS OF BUYER'S AGENT. A buyer's agent shall 27 maintain complete records of each motor vehicle purchase the agent negotiates, 28 including the purchase arrangements and monetary transactions. The records must 29 include 30 (1) copies of advertisements, brochures, and pamphlets issued, used, or 31 distributed by the buyer's agent during the sales transaction;
01 (2) the original contract between the buyer's agent and the buyer; 02 (3) copies of any purchase orders issued by the buyer's agent; 03 (4) evidence of the delivery of the motor vehicle to the buyer; 04 (5) a copy of the purchase agreement between the buyer and the motor 05 vehicle dealer; and 06 (6) a copy of any service agreement between the manufacturer and the 07 motor vehicle dealer. 08 Sec. 08.66.330. PENALTY. A person who knowingly violates AS 08.66.200 -08.66.350 is guilty of a class A 09 misdemeanor. 10 Sec. 08.66.350. DEFINITIONS. In AS 08.66.200 - 08.66.350, 11 (1) "buyer's agent" means a person who does business in the state by 12 negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle 13 dealer; 14 (2) "department" means the Department of Public Safety; 15 (3) "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. 6. AS 45.50.471(b) is amended by adding new paragraphs to read: 19 (33) violating AS 08.66.010 - 08.66.090 (motor vehicle dealers); 20 (34) violating AS 08.66.200 - 08.66.350 (motor vehicle buyers' agents). 21 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).