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SSHB 81: "An Act relating to motor vehicle dealer charges for fees and costs; and relating to the financing of motor vehicle purchases."

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