00                              HOUSE BILL NO. 39                                                                          
01 "An Act limiting 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 fees                           
08       or costs in addition to the advertised or negotiated price, except for                                        
09                 (1)  fees actually paid to a state agency for licensing, registration, or                           
10       title transfers;                                                                                              
11                 (2)  charges for optional equipment, for substantial additions to the                               
12       motor vehicle, for warranties, for services, and for style, design, or color features                         
13       [, UNLESS THE FEES OR COSTS ARE INCLUDED IN THE ADVERTISED                                                        
14       PRICE].                                                                                                           
01            (b)  In this section, "dealer fees or costs" includes dealer preparation fees,                               
02       document preparation fees, surcharges, charges, and other dealer-imposed fees and                             
03       costs.                                                                                                            
04    * Sec. 2. AS 45.25.610(c) is amended to read:                                                                      
05            (c)  If a motor vehicle dealer arranges financing for a buyer, the motor vehicle                             
06       dealer may deliver the motor vehicle to the buyer before final approval by the                                    
07       financing entity if                                                                                               
08                 (1)  the buyer and seller sign an agreement separate from the motor                                     
09       vehicle installment contract on an 8 1/2 x 11 inch sheet of paper that clearly and                                
10       conspicuously informs the buyer that final financing arrangements have not yet been                               
11       approved and that clearly sets out the amount that will be financed, the annual                                   
12       percentage rate of the finance charge, the amount of the finance charge, the number                               
13       and frequency of payments, and the amount of each payment;                                                        
14                 (2)  the separate agreement in (1) of this subsection clearly and                                   
15       conspicuously informs the buyer that accepting delivery of the vehicle before final                               
16       financing approval obligates the buyer to terms of the motor vehicle sales contract if                            
17       the terms on the separate agreement are identical to the terms finally approved by the                            
18       financing entity; [AND]                                                                                           
19                 (3)  the motor vehicle dealer complies with the disclosure                                          
20       requirements of (f) of this section; and                                                                      
21                 (4)  the separate agreement in (1) of this subsection provides that the                         
22       separate agreement, the motor vehicle sales contract, and any and all other conditions                            
23       of the purchase will be void if any of the terms contained in the separate agreement are                          
24       changed by either the motor vehicle dealer or the financing institution as a condition                            
25       of sale or final financing approval.                                                                              
26    * Sec. 3. AS 45.25.610 is amended by adding a new subsection to read:                                              
27            (f)  In addition to the other requirements of this section, if a motor vehicle                               
28       dealer arranges financing for a proposed buyer or offers financing to a proposed buyer,                           
29       the dealer shall disclose in writing and before the sale is finalized                                             
30                 (1)  whether the interest rate quoted to the proposed buyer is different                                
31       than the interest rate charged to the dealer; and                                                                 
01                 (2)  that the interest rate quoted to the buyer may not be the lowest                                   
02       interest rate available.