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HB 81: "An Act relating to motor vehicle dealer charges for fees and costs; relating to the disclosures required for certain motor vehicle transactions; and relating to the financing of motor vehicle purchases."

00                              HOUSE BILL NO. 81                                                                          
01 "An Act relating to motor vehicle dealer charges for fees and costs; relating to the                                    
02 disclosures required for certain motor vehicle transactions; and relating to the financing                              
03 of motor vehicle purchases."                                                                                            
04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
05    * Section 1. AS 45.25.440 is amended to read:                                                                      
06            Sec. 45.25.440. Additional fees and costs [ADVERTISED PRICE]. (a)                                        
07       When selling a motor vehicle, a motor vehicle dealer may not charge any [DEALER]                              
08       fees or costs in addition to the advertised or negotiated price, except for fees                              
09       actually paid to a state agency for licensing, registration, or title transfers [, UNLESS                         
10       THE FEES OR COSTS ARE INCLUDED IN THE ADVERTISED PRICE].                                                          
11            (b)  In this section, "[DEALER] fees or costs" includes dealer preparation fees,                             
12       document preparation fees, surcharges, charges, and other [DEALER-IMPOSED]                                    
13       fees and costs.                                                                                                   
14    * Sec. 2. AS 45.25.610(c) is amended to read:                                                                      
01            (c)  If a motor vehicle dealer arranges financing for a buyer, the motor vehicle                             
02       dealer may deliver the motor vehicle to the buyer before final approval by the                                    
03       financing entity if                                                                                               
04                 (1)  the buyer and seller sign an agreement separate from the motor                                     
05       vehicle installment contract on an 8 1/2 x 11 inch sheet of paper that clearly and                                
06       conspicuously informs the buyer that final financing arrangements have not yet been                               
07       approved and that clearly sets out the amount that will be financed, the annual                                   
08       percentage rate of the finance charge, the amount of the finance charge, the number                               
09       and frequency of payments, and the amount of each payment;                                                        
10                 (2)  the separate agreement in (1) of this subsection clearly and                                   
11       conspicuously informs the buyer that accepting delivery of the vehicle before final                               
12       financing approval obligates the buyer to terms of the motor vehicle sales contract if                            
13       the terms on the separate agreement are identical to the terms finally approved by the                            
14       financing entity; [AND]                                                                                           
15                 (3)  the motor vehicle dealer complies with the disclosure                                          
16       requirements of (f) of this section; and                                                                      
17                 (4)  the separate agreement in (1) of this subsection provides that the                         
18       separate agreement, the motor vehicle sales contract, and any and all other conditions                            
19       of the purchase will be void if any of the terms contained in the separate agreement are                          
20       changed by either the motor vehicle dealer or the financing institution as a condition                            
21       of sale or final financing approval.                                                                              
22    * Sec. 3. AS 45.25.610 is amended by adding a new subsection to read:                                              
23            (f)  In addition to the other requirements of this section, if a motor vehicle                               
24       dealer arranges financing for a proposed buyer or offers financing to a proposed buyer,                           
25       the dealer shall disclose in writing and before the sale is finalized                                             
26                 (1)  whether the interest rate quoted to the proposed buyer is different                                
27       than the interest rate charged to the dealer; and                                                                 
28                 (2)  that the interest rate quoted to the buyer may not be the lowest                                   
29       interest rate available.