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CSHB 136(TRA): "An Act relating to motor vehicle franchises, motor vehicle dealers, motor vehicle manufacturers, and motor vehicle distributors."

00                       CS FOR HOUSE BILL NO. 136(TRA)                                                                    
01 "An Act relating to motor vehicle franchises, motor vehicle dealers, motor vehicle                                      
02 manufacturers, and motor vehicle distributors."                                                                         
03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:                                                                
04    * Section 1. The uncodified law of the State of Alaska is amended by adding a new section                          
05 to read:                                                                                                                
06       LEGISLATIVE FINDINGS AND INTENT. (a) The legislature finds that                                                   
07            (1)  the distribution and sale of motor vehicles in the state affects the general                            
08 economy of the state and the interests and welfare of the residents of the state;                                       
09            (2)  providing warranty service for new motor vehicles is a matter of                                        
10 substantial concern to the residents of the state;                                                                      
11            (3)  the maintenance of fair competition among new motor vehicle dealers is in                               
12 the public interest;                                                                                                    
13            (4)  maintaining strong and sound new motor vehicle dealerships in the state is                              
14 essential to providing the consuming public with continuing and reliable services necessary                             
01 for their motor vehicles; and                                                                                           
02            (5)  strong and sound new motor vehicle dealerships with active service                                      
03 departments will provide stable employment opportunities to the residents of the state.                                 
04 (b)  The legislature declares that this Act is remedial, and, to the extent permitted by                                
05 the Constitution of the State of Alaska and the United States Constitution, it is the intent of                         
06 the legislature that the provisions of this Act apply to all franchise agreements between                               
07 manufacturers and new motor vehicle dealers.                                                                            
08    * Sec. 2. AS 45.25.010 is amended to read:                                                                         
09            Sec. 45.25.010. Applicability. AS 45.25.020 - 45.25.310 [AS 45.25.020 -                                
10 45.25.320] apply to franchise agreements [CONTRACTS] between a manufacturer                                         
11       and its new motor vehicle dealers in this state.                                                                  
12    * Sec. 3. AS 45.25.110(a) is amended to read:                                                                      
13 (a)  A manufacturer may not terminate a franchise agreement with a new                                              
14       motor vehicle dealer unless                                                                                       
15                 (1)  the manufacturer has                                                                               
16 (A)  complied with [SATISFIED] the notice requirements of                                                           
17            this chapter; and                                                                                        
18 (B)  shown that there is good cause for the termination of the                                                          
19 franchise agreement, and, if the reasons underlying the good cause can be                                           
20 corrected by the new motor vehicle dealer, the new motor vehicle dealer has                                             
21 failed for 120 [60] days after delivery of the notice required by AS 45.25.120                                      
22 to make the corrections; the circumstances identified under AS 45.25.120(a)(2)                                          
23 for which a 15-day notice of termination is required do not qualify as reasons                                          
24            for which correction is allowed under this subparagraph [PARAGRAPH]; or                                  
25 (2)  the new motor vehicle dealer has systematically engaged in fraud                                                   
26 against consumers or the manufacturer or in the operation of the new motor vehicle                                      
27       dealership.                                                                                                       
28    * Sec. 4. AS 45.25.110 is amended by adding a new subsection to read:                                              
29 (d)  A failure of a new motor vehicle dealer under (a) of this section that relates                                     
30 to the performance of the new motor vehicle dealer in sales, service, or level of                                       
31 customer satisfaction does not amount to good cause under this section if the new                                       
01       motor vehicle dealer failed to comply and the failure to comply was caused by                                     
02                 (1)  an insufficient supply of new motor vehicles; or                                                   
03                 (2)  market, economic, or other factors that exist within the new motor                                 
04       vehicle dealer's relevant market area and that were beyond the control of the new                                 
05       motor vehicle dealer.                                                                                             
06    * Sec. 5. AS 45.25.140(a) is amended to read:                                                                      
07            (a)  Upon the termination of a new motor vehicle dealer's franchise agreement                                
08       by the manufacturer or distributor, the manufacturer or distributor shall repurchase                              
09       from the new motor vehicle dealer at                                                                              
10 (1)  the new motor vehicle dealer's net acquisition cost, if the motor                                                  
11 vehicles have not been materially altered or damaged, all inventory consisting of                                       
12       unsold new motor vehicles that are current models;                                                            
13 (2)  the new motor vehicle dealer's net acquisition cost, new motor                                                 
14 vehicle [AND] models from the previous year that have been acquired from the                                    
15 manufacturer within the past two [MODEL] years before receipt of the notice of                                          
16       termination, but an adjustment based on mileage over 500 miles may be made;                                   
17 (3) [(2)]  the new motor vehicle dealer price listed in the current                                                 
18 manufacturer's parts catalog, less applicable allowances, new unused undamaged                                      
19 parts in their original, unbroken packaging [, LISTED IN THE CURRENT PRICE                                              
20       CATALOG] and acquired from the manufacturer or distributor;                                                       
21 (4) [(3)]  fair market value, signs, equipment, and furnishings that bear                                           
22 the manufacturer's [A] trademark or trade name, that have not been altered or                                       
23 damaged, and that were required by the manufacturer or distributor within five years                                    
24       preceding the notice of termination;                                                                              
25 (5)  [AND (4)] the new motor vehicle dealer's net acquisition cost,                                                 
26 special tools that have not been altered or materially damaged and that were                                        
27 purchased from the manufacturer or distributor within three years preceding the date                                    
28       of the termination; and                                                                                       
29 (6)  the lesser of the fair market value or the depreciated value, all                                              
30 manufacturer required computers, printers, and other electronic hardware, and                                       
31 electronic software, except, if the new motor vehicle dealer leases the computers,                                  
01       printers, or other electronic hardware, or electronic software, the manufacturer                              
02       shall pay the new motor vehicle dealer the amount of money that is required for                               
03       the new motor vehicle dealer to terminate the lease under the lease agreement.                              
04    * Sec. 6. AS 45.25.150(b) is amended to read:                                                                      
05            (b)  This section does not relieve a new motor vehicle dealer of the obligation                              
06       to mitigate                                                                                                       
07                 (1)  damages under a lease, prevent a manufacturer from occupying and                               
08       using the new motor vehicle dealer's facilities while paying rent, or preclude a                                  
09       manufacturer from negotiating a lease termination, sublease, or new lease; or                                 
10 (2)  the costs of the relocation, substantial alteration, and                                                       
11 remodeling of the new motor vehicle dealer's facilities for which payments are                                      
12       required under (f) of this section.                                                                           
13    * Sec. 7. AS 45.25.150 is amended by adding a new subsection to read:                                              
14 (f)  In addition to the payment required under AS 45.25.140 and (a) of this                                             
15 section, upon termination of a franchise agreement by the manufacturer under this                                       
16 chapter, the manufacturer shall, at the request and option of the new motor vehicle                                     
17 dealer, pay the new motor vehicle dealer the new motor vehicle dealer's cost for a                                      
18 relocation, substantial alteration, or remodeling of the new motor vehicle dealer's                                     
19       facilities to the extent used for the manufacturer's franchise, if                                                
20 (1)  the manufacturer required the relocation, substantial alteration, or                                               
21 remodeling of the new motor vehicle dealer's facilities for a continuation or renewal of                                
22       the franchise agreement; and                                                                                      
23 (2)  the relocation, substantial alteration, or remodeling of the new                                                   
24 motor vehicle dealer's facilities was completed within three years before the                                           
25 termination or is in process when the new motor vehicle dealer receives the notice of                                   
26       termination.                                                                                                      
27    * Sec. 8. AS 45.25.160 is repealed and reenacted to read:                                                          
28 Sec. 45.25.160. Prevention of or refusal to honor transfer of new motor                                               
29 vehicle dealership ownership. (a) A manufacturer may not unreasonably prevent or                                      
30 refuse to honor the transfer of ownership of a new motor vehicle dealership to a buyer                                  
31 who is capable of being licensed as a new motor vehicle dealer in this state and who                                    
01 meets the standards established by the manufacturer, if the standards are reasonable                                    
02       and applied uniformly.                                                                                            
03 (b)  Within 30 days after receipt of a written request from a new motor vehicle                                         
04 dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer                                  
05 may request, and the new motor vehicle dealer shall promptly provide, supplementary                                     
06 information that is reasonably necessary for the manufacturer to determine whether the                                  
07 manufacturer will approve the request for the transfer. If a manufacturer refuses to                                    
08 approve the transfer, the manufacturer shall give written notice to the new motor                                       
09 vehicle dealer of the refusal. The manufacturer shall give the notice to the new motor                                  
10 vehicle dealer within 75 days after the date the manufacturer has received both the                                     
11 written transfer request and supplementary information requested under this                                             
12 subsection. The notice must state the specific grounds for the refusal to approve the                                   
13 transfer. The manufacturer shall give the notice under this subsection by personal                                      
14 service or certified mail with return receipt requested. If the manufacturer does not                                   
15 give the notice within the time allowed under this subsection and does not exercise a                                   
16       right of first refusal under (c) of this section, the request shall be considered approved.                       
17 (c)  A manufacturer or distributor may exercise a contractual right of first                                            
18 refusal with respect to the proposed sale or other transfer of the interest of the dealer in                            
19       a new motor vehicle dealership if                                                                                 
20 (1)  the sale or other transfer is to a person who is not a family member                                               
21 of an owner of the dealership, a managerial employee of the dealership owning 15                                        
22 percent or more of the dealership, or a corporation, partnership, or other legal entity                                 
23 owned by the existing owners of the dealership; in this paragraph, "family member"                                      
24       means                                                                                                             
25                      (A)  the spouse of an owner of the dealership;                                                     
26 (B)  the child, stepchild, grandchild, brother, sister, or parent of                                                    
27            an owner of the dealership; or                                                                               
28                      (C)  a spouse of a person identified in (B) of this paragraph;                                     
29 (2)  the manufacturer or distributor notifies the new motor vehicle                                                     
30 dealer in writing of the intent to exercise the right of first refusal; within 30 days after                            
31 receipt of a written request from a new motor vehicle dealer for transfer of the                                        
01 ownership of a new motor vehicle dealership, a manufacturer or distributor may                                          
02 request, and the new motor vehicle dealer shall promptly provide, related information                                   
03 generally used by a manufacturer or distributor to conduct its review of a proposed                                     
04 intent to exercise the right of first refusal and supplementary information that is                                     
05 reasonably necessary for the manufacturer or distributor to determine whether the                                       
06 manufacturer or distributor will exercise the right of first refusal; if the manufacturer                               
07 or distributor decides to exercise the right of first refusal, the manufacturer or                                      
08 distributor shall give written notice to the new motor vehicle dealer of the decision                                   
09 within 75 days after receiving the completed transfer request, related information, and                                 
10 requested supplementary information; the manufacturer or distributor shall give the                                     
11 notice under this subsection by personal service or certified mail with return receipt                                  
12 requested; if the manufacturer or distributor fails to notify the dealer within the 75-day                              
13 period that the manufacturer or distributor will exercise the right of first refusal, the                               
14       manufacturer or distributor may not exercise the right of first refusal;                                          
15 (3)  the exercise of the right of first refusal provides to the new motor                                               
16 vehicle dealer the same compensation as, or greater compensation than, the new motor                                    
17 vehicle dealer had negotiated to receive from the proposed buyer or other transferee;                                   
18       and                                                                                                               
19 (4)  the manufacturer or distributor agrees to pay the reasonable                                                       
20 expenses, including reasonable attorney and accountant fees that do not exceed the                                      
21 usual, customary, and reasonable fees charged for similar work done in the state for                                    
22 other clients, incurred before the manufacturer or distributor exercised its right of first                             
23 refusal by the proposed buyer or transferee to negotiate and implement the terms of                                     
24       the contract for the sale or transfer.                                                                            
25    * Sec. 9. AS 45.25.180(d) is amended to read:                                                                      
26 (d)  When determining whether good cause exists for establishing or relocating                                          
27 an additional new motor vehicle dealer for the same line make, the superior court shall                                 
28       consider the existing circumstances, including                                                                    
29 (1)  whether the establishment of an additional franchise or relocation                                                 
30 of the existing new motor vehicle dealer appears to be warranted by economic and                                        
31       marketing conditions, including anticipated future changes;                                                       
01 (2)  the retail sales and service business transacted by the protesting                                                 
02 new motor vehicle dealer and other new motor vehicle dealers of the same line make                                      
03 with a place of business in the relevant market area to be served by the additional                                     
04 franchise or proposed new location of an existing new motor vehicle dealer during the                                   
05       three-year period immediately preceding the notice;                                                               
06 (3)  the investment necessarily made and obligations incurred by the                                                    
07 protesting new motor vehicle dealer to perform the protesting new motor vehicle                                         
08       dealer's obligations under existing franchise agreements;                                                         
09 (4)  the permanency of the investment of the protesting new motor                                                       
10       vehicle dealer; [AND]                                                                                             
11 (5)  whether it is beneficial or injurious to the public welfare for an                                                 
12 additional franchise to be established or for the existing new motor vehicle dealer to                                  
13       be relocated;                                                                                                 
14 (6)  whether the manufacturer has denied the manufacturer's                                                         
15 existing new motor vehicle dealer of the same line make the opportunity for                                         
16       reasonable growth, market expansion, or relocation; and                                                       
17 (7)  whether the proposed relocation is farther away from the                                                       
18       protesting new motor vehicle dealer.                                                                        
19    * Sec. 10. AS 45.25.180 is amended by adding a new subsection to read:                                             
20 (f)  Under this section, a manufacturer has the burden of proving that good                                             
21 cause exists for permitting the proposed establishment or relocation of a new motor                                     
22 vehicle dealer that the manufacturer has proposed, and the new motor vehicle dealer                                     
23 has the burden of proving that good cause exists for permitting the proposed                                            
24 establishment or relocation of a new motor vehicle dealer that the new motor vehicle                                    
25       dealer has proposed.                                                                                              
26    * Sec. 11. AS 45.25.190 is amended to read:                                                                        
27 Sec. 45.25.190. Arbitration. In a controversy between a manufacturer and a                                            
28 new motor vehicle dealer under AS 45.25.010 - 45.25.310 [AS 45.25.010 - 45.25.320],                                 
29 neither the manufacturer nor the new motor vehicle dealer is required to submit the                                     
30 controversy to arbitration. If both the manufacturer and the new motor vehicle dealer                                   
31 agree to submit a controversy under AS 45.25.010 - 45.25.310 [AS 45.25.010 -                                        
01 45.25.320] to arbitration, the arbitration shall be conducted under AS 09.43.010 -                                      
02 09.43.180 (Uniform Arbitration Act) or AS 09.43.300 - 09.43.595 (Revised Uniform                                        
03 Arbitration Act), as applicable, the manufacturer and the new motor vehicle dealer                                      
04 shall each select one arbitrator, and both the manufacturer and the new motor vehicle                                   
05       dealer shall select the third arbitrator.                                                                         
06    * Sec. 12. AS 45.25 is amended by adding new sections to article 2 to read:                                        
07 Sec. 45.25.200. Payment and approval of claims. (a) A manufacturer shall                                            
08 pay a new motor vehicle dealer for all warranty work. The manufacturer may not deny                                     
09 a claim for warranty work to resolve a condition discovered and properly repaired by                                    
10 the dealer during the course of a separate repair, if the dealer provides the required                                  
11 documentation demonstrating the need for the repair. A manufacturer shall pay the                                       
12 new motor vehicle dealer for the approved warranty repairs in accordance with the                                       
13 schedule of compensation that applies to the repairs when the new motor vehicle                                         
14       dealer makes the repairs.                                                                                         
15 (b)  A new motor vehicle dealer shall submit a claim for warranty work to the                                           
16 manufacturer within 90 days after the new motor vehicle dealer completes the work on                                    
17 the new motor vehicle. The new motor vehicle dealer shall submit the claim in the                                       
18       manner that the manufacturer requires.                                                                            
19 (c)  Within 30 days after the manufacturer receives a claim from a new motor                                            
20 vehicle dealer under (b) of this section, the manufacturer shall approve or disapprove                                  
21 the claim in writing or electronically. If a manufacturer does not disapprove a claim as                                
22 required by this subsection, the claim is considered approved. The manufacturer shall                                   
23       pay the claim within 30 days after the approval of the claim.                                                     
24 (d)  If a manufacturer disapproves a claim that the new motor vehicle dealer                                            
25 submits under (b) of this section, a manufacturer shall notify the new motor vehicle                                    
26 dealer in writing or electronically and shall state the reasons for disapproving the                                    
27 claim. A new motor vehicle dealer may correct and resubmit the claim within 30 days                                     
28 after the new motor vehicle dealer receives the written or electronic notice that the                                   
29       manufacturer disapproved the claim.                                                                               
30 (e)  A manufacturer may not initiate or conduct an audit to determine the                                               
31 validity of paid claims for new motor vehicle dealer warranty work unless the                                           
01 manufacturer initiates the audit within one year after the payment of the claim. The                                    
02 manufacturer may not perform more than one audit in a calendar year to determine the                                    
03       validity of paid claims for new motor vehicle dealer warranty work.                                               
04 (f)  A manufacturer may not initiate or conduct an audit to determine the                                               
05 validity of paid incentive claims unless the manufacturer initiates the audit within one                                
06 year after the payment of the claim or the conclusion of the incentive program,                                         
07 whichever event occurs later. The manufacturer may not perform more than one audit                                      
08       in a calendar year to determine the validity of paid incentive claims.                                            
09 (g)  Notwithstanding the limitations under (e) and (f) of this section, if a                                            
10 manufacturer reasonably suspects fraud, the manufacturer may audit a dealer for                                         
11 fraudulent claims during any period in which an action for fraud may be commenced                                       
12       under applicable state law.                                                                                       
13 Sec. 45.25.210. Rates for warranty and other work. (a) A manufacturer shall                                         
14 provide each of its new motor vehicle dealers with the schedule of compensation that                                    
15 the manufacturer shall pay to the new motor vehicle dealer for warranty work that the                                   
16 manufacturer requires the new motor vehicle dealer to perform for the manufacturer's                                    
17       products.                                                                                                         
18 (b)  The schedule of compensation must include compensation for parts and                                               
19 labor and must comply with this section. The compensation for parts must include the                                    
20       average retail percentage markup that the new motor vehicle dealer charges.                                       
21 (c)  Unless otherwise agreed to by the manufacturer and the new motor vehicle                                           
22 dealer, the rates in the schedule of compensation may not be less than the rates that the                               
23 new motor vehicle dealer charges retail customers for similar nonwarranty service                                       
24       work.                                                                                                             
25 (d)  To establish the retail percentage markup, the new motor vehicle dealer                                            
26 shall submit to the manufacturer 100 sequential chronologically issued retail service                                   
27 repair orders paid by customers for warranty-like repairs, or 90 consecutive days of                                    
28 retail service repair orders paid by customers for warranty-like repairs, whichever                                     
29 number of retail service repair orders is less. The retail service repair orders that the                               
30 new motor vehicle dealer submits must cover retail repairs that the new motor vehicle                                   
31 dealer made less than 180 days before the new motor vehicle dealer submits them to                                      
01       the manufacturer.                                                                                                 
02 (e)  A manufacturer may not require a new motor vehicle dealer to establish                                             
03 the retail percentage markup by a method other than the method required by (d) of this                                  
04 section. When establishing the retail percentage markup, a manufacturer may not                                         
05 require the new motor vehicle dealer to provide information that is unduly                                              
06 burdensome or time consuming to provide, including part-by-part or transaction-by-                                      
07       transaction calculations.                                                                                         
08            (f)  A manufacturer may not include in the calculation of the rates in the                                   
09       schedule of compensation                                                                                          
10 (1)  repairs for manufacturer special events, manufacturer specials, or                                                 
11       manufacturer promotional discounts;                                                                               
12                 (2)  parts sold at wholesale;                                                                           
13 (3)  routine maintenance not covered under warranty, including the                                                      
14 replacement of fluids, filters, and belts, unless the new motor vehicle dealer provides                                 
15       the routine maintenance in the course of making a repair;                                                         
16 (4)  nuts, bolts, fasteners, and similar items that do not have an                                                      
17       individual part number;                                                                                           
18                 (5)  tires, batteries, and light bulbs;                                                                 
19                 (6)  vehicle reconditioning; and                                                                        
20 (7)  repair orders for motor vehicle body repairs if an insurer pays for                                                
21       the repairs.                                                                                                      
22 (g)  The retail percentage markup calculated under (d) of this section may not                                          
23 take effect more than 30 days after the manufacturer approves the dealer's proposed                                     
24 rate, or after the manufacturer is considered to have approved the dealer's proposed                                    
25 rate under this section. If a manufacturer does not disapprove the dealer's proposed                                    
26 rate within 30 days after the new motor vehicle dealer submits the rate application,                                    
27       then the dealer's proposed rate shall be considered approved.                                                     
28 (h)  A manufacturer may disapprove a rate proposed by the new motor vehicle                                             
29 dealer under this section if the manufacturer demonstrates that the proposed rate is                                    
30 materially miscalculated or unreasonable compared to other similarly situated new                                       
31       motor vehicle dealers in this state.                                                                              
01 (i)  A new motor vehicle dealer may not receive more than one rate increase                                             
02       under this section in a calendar year.                                                                            
03 Sec. 45.25.220. Performance and reimbursement of certain repairs. (a)                                                 
04 Except as provided in (b) of this section, if a new motor vehicle needs repairs that are                                
05 covered under a manufacturer's warranty, and if the new motor vehicle is located in a                                   
06 remote location, the manufacturer shall make reasonable efforts to arrange for the new                                  
07       motor vehicle to be repaired in the remote location.                                                              
08 (b)  If a manufacturer determines that repairs cannot reasonably be made in a                                           
09 remote location within the manufacturer's guidelines, the manufacturer may arrange, at                                  
10 no cost to the owner of the new motor vehicle, to ship the new motor vehicle to a                                       
11 repair facility outside of the remote location and to return the new motor vehicle to the                               
12       remote location after the repairs are completed.                                                                  
13 (c)  A manufacturer may direct a new motor vehicle dealer of the manufacturer                                           
14 to refer customers of the new motor vehicle dealer to the manufacturer if the new                                       
15       motor vehicles of the customers are located in remote locations and need repairs.                                 
16 (d)  This section does not prohibit a manufacturer from allowing a new motor                                            
17 vehicle dealer to subcontract warranty work for a specific new motor vehicle that is                                    
18 located in a remote location. If the manufacturer allows the new motor vehicle dealer                                   
19 to subcontract the warranty work, the manufacturer shall compensate the new motor                                       
20 vehicle dealer for the subcontracted warranty work paid for by the new motor vehicle                                    
21       dealer.                                                                                                           
22 (e)  In this section, "remote location" means a location that is not accessible by                                      
23 road or that is more than 100 road miles from a new motor vehicle dealer that is                                        
24       authorized to perform warranty work on new motor vehicles.                                                        
25 Sec. 45.25.230. Preparation and service before delivery. A manufacturer                                               
26 and a distributor shall provide in writing the following information to their new motor                                 
27 vehicle dealers about new motor vehicles and other products received from the                                           
28       manufacturer or distributor:                                                                                      
29 (1)  the specific obligations of the new motor vehicle dealer to prepare                                                
30 and service new motor vehicles and products before delivery of the new motor                                            
31       vehicles and products to buyers;                                                                                  
01                 (2)  the compensation that the manufacturer or distributor will pay the                                 
02       dealer for performing the preparation and service obligations described in (1) of this                            
03       section; and                                                                                                      
04                 (3)  the amount of time that the manufacturer or distributor will allow                                 
05       the new motor vehicle dealer for performing the preparation and service obligations                               
06       described in (1) of this section.                                                                                 
07    * Sec. 13. AS 45.25.300 is repealed and reenacted to read:                                                         
08            Sec. 45.25.300. Unfair practices. A manufacturer may not                                                   
09                 (1)  require, coerce, or attempt to coerce a new motor vehicle dealer to                                
10 change the location of the new motor vehicle dealership or to make any substantial                                      
11 alterations to the new motor vehicle dealership premises or facilities if the alterations                               
12 would be unreasonable or if there is not expected to be a sufficient supply of new                                      
13 motor vehicles to justify the change of location or the alterations because of market                                   
14 and economic conditions; this paragraph does not apply to alterations that are                                          
15 necessary to comply with health or safety laws; in this paragraph, "substantial                                         
16 alterations" does not include erecting signs subject to the manufacturer's intellectual                                 
17 property rights, doing interior painting that is necessary to keep a new motor vehicle                                  
18       dealer facility in an attractive condition, or performing routine maintenance;                                    
19 (2)  require a new motor vehicle dealer to purchase or include in                                                       
20 inventory a predetermined number or percentage of certified pre-owned motor                                             
21       vehicles or lease return motor vehicles;                                                                          
22 (3)  except because of reasons beyond the manufacturer's control,                                                       
23 refuse or fail to deliver or offer for sale in reasonable quantities to a new motor vehicle                             
24 dealer holding a franchise for a line make of new motor vehicles sold or distributed by                                 
25 the manufacturer a new motor vehicle, part, or accessory, if the new motor vehicle,                                     
26 part, or accessory is being delivered to other new motor vehicle dealers; this paragraph                                
27       does not apply to limited edition or limited release vehicle parts or accessories;                                
28 (4)  require a new motor vehicle dealer to purchase unreasonable                                                        
29       advertising displays or other materials or an unreasonable number of signs;                                       
30 (5)  require a new motor vehicle dealer to order or accept delivery of a                                                
31 new motor vehicle, part, accessory, piece of equipment, promotional material, display                                   
01 device, display decoration, or other item that is not otherwise required by law and that                                
02 the new motor vehicle dealer does not voluntarily order; this paragraph does not apply                                  
03 to safety and emissions recall campaign parts or to a motor vehicle feature, part,                                      
04 accessory, or other component required by federal law, the law of this state, or local                                  
05       law;                                                                                                              
06                 (6)  coerce, attempt to coerce, or require a new motor vehicle dealer to                                
07                      (A)  join, contribute money to, or affiliate with an advertising                                   
08            association; or                                                                                              
09                      (B)  participate monetarily in an advertising campaign; or                                         
10 (7)  increase the price of a new motor vehicle that the new motor                                                       
11 vehicle dealer has ordered from the manufacturer and for which there exists at the time                                 
12 of the order a bona fide sale to a retail or fleet purchaser if the dealer submitted the                                
13 order to the manufacturer before the manufacturer provided the new motor vehicle                                        
14       dealer with an official written price increase notification.                                                      
15    * Sec. 14. AS 45.25.990(19) is repealed and reenacted to read:                                                     
16                 (19)  "terminate" includes                                                                              
17                      (A)  canceling or not renewing;                                                                    
18 (B)  a manufacturer discontinuing the sale and distribution of a                                                        
19            new motor vehicle line make covered by a franchise;                                                          
20    * Sec. 15. AS 45.25.990 is amended by adding new paragraphs to read:                                               
21 (22)  "schedule of compensation" means a schedule of compensation                                                       
22       established under AS 45.25.210;                                                                                   
23                 (23)  "warranty work"                                                                                   
24 (A)  means repairs that are covered under a manufacturer's                                                              
25            warranty or a recall;                                                                                        
26 (B)  means work that the manufacturer in good will directs be                                                           
27 performed and reimbursed by the manufacturer but that is not covered by the                                             
28            manufacturer's warranty or a recall;                                                                         
29                      (C)  does not mean work under a separate service contract.                                         
30    * Sec. 16. AS 45.25.320 is repealed.