00 HOUSE BILL NO. 303 01 "An Act relating to marine products and motorized recreational products; and 02 providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04  * Section 1. AS 45.25 is amended by adding a new section to read: 05 Sec. 45.25.920. Conflicting provisions. If a provision of this chapter conflicts 06 with a provision in AS 45.27, the provision in AS 45.27 governs. 07  * Sec. 2. AS 45 is amended by adding a new chapter to read: 08 Chapter 27. Marine Products and Motorized Recreational Products.  09 Article 1. Agreement Practices of Product Manufacturers and Distributors.  10 Sec. 45.27.010. Formation of agreement. A manufacturer or distributor may 11 not coerce or attempt to coerce an authorized dealer to enter into an agreement with 12 the manufacturer or distributor. 13 Sec. 45.27.020. Cancellation or nonrenewal of agreement. (a) A 14 manufacturer or distributor may not threaten to cancel an agreement with an 01 authorized dealer without just cause. 02 (b) A manufacturer or distributor may not, without just cause and 120 days' 03 advance written notice, cancel or refuse to renew an agreement with an authorized 04 dealer unless the cancellation or refusal to renew arises out of 05 (1) failure of the authorized dealer to meet the financial requirements 06 of the agreement; or 07 (2) fraudulent activity of the authorized dealer that results in the 08 authorized dealer's being convicted of a crime, including being convicted by a plea of 09 guilty or no contest. 10 Sec. 45.27.030. Consent to transfer of agreement. (a) A manufacturer or 11 distributor may not unreasonably withhold consent to the sale or other transfer of an 12 agreement by an authorized dealer to a transferee if the transferee 13 (1) meets the criteria generally applied by the manufacturer or 14 distributor when approving new authorized dealers; and 15 (2) agrees to be bound by all the terms and conditions of the standard 16 form of the agreement. 17 (b) A manufacturer or distributor shall respond in writing to an authorized 18 dealer's written request for consent under (a) of this section within 30 days after of 19 receiving the authorized dealer's written request. The request must be on a form, if 20 any, that is generally used by the manufacturer or distributor for the purpose and that 21 contains the information required by the manufacturer or distributor. 22 (c) If a manufacturer or distributor fails to respond to an authorized dealer as 23 required by (b) of this section, the manufacturer or distributor is considered to have 24 consented to the request. 25 Sec. 45.27.040. Change in existing agreement. Except as provided by 26 AS 45.25.110, a manufacturer or distributor may not change an agreement with an 27 authorized dealer unless the manufacturer or distributor gives notice by mail to the 28 authorized dealer at least 90 days before the change. 29 Article 2. Area of Responsibility.  30 Sec. 45.27.100. Determination of area of responsibility. (a) Unless the 31 authorized dealer's agreement establishes a smaller area of responsibility, an 01 authorized dealer's area of responsibility may be a geographical area designated by zip 02 code, municipality, or mileage radius in the authorized dealer's agreement with a 03 manufacturer or distributor and may be established by the uniform procedures adopted 04 under (c) of this section. 05 (b) If the authorized dealer and the manufacturer or distributor have not 06 established an area of responsibility under (c) of this section, or if the area of 07 responsibility established by the manufacturer or distributor is rejected by the 08 authorized dealer, the area of responsibility is a 09 (1) 12-mile radius from the authorized dealer if the authorized dealer is 10 located in a municipality containing 4,000 persons or more; or 11 (2) 30-mile radius from the authorized dealer if the authorized dealer is 12 located in a municipality containing fewer than 4,000 persons. 13 (c) The manufacturer or distributor shall adopt uniform procedures to establish 14 an area of responsibility. The uniform procedures must include market research 15 information from identified credible industry sources that project sales of the brand of 16 the products under the agreement between the authorized dealer and the manufacturer 17 or distributor. 18 Sec. 45.27.110. Changing area of responsibility. Before changing an area of 19 responsibility, the manufacturer or distributor shall give the authorized dealer at least 20 90 days' written notice by mail before the change. This section does not apply to an 21 authorized dealer who relocates or opens additional facilities within two miles of the 22 authorized dealer's existing facilities unless the relocation would infringe on another 23 authorized dealer's area of responsibility. 24 Sec. 45.27.120. Adding authorized dealer to area of responsibility. (a) A 25 manufacturer or distributor may not enter into an agreement that would add an 26 authorized dealer within the existing authorized dealer's area of responsibility without 27 giving at least 90 days' written notice by mail to all potentially affected authorized 28 dealers in the area of responsibility. 29 (b) The notice under (a) of this section must include 30 (1) a determination that the community or territory can support an 31 additional authorized dealer; 01 (2) a calculation of the financial effect on the new authorized dealer 02 and the existing authorized dealers who may be affected; and 03 (3) a determination of whether the existing authorized dealers of the 04 same line of product makes, models, or classifications in the authorized dealer's area 05 of responsibility are providing adequate representation, competition, and convenient 06 consumer care for the same line of product makes, models, and classifications located 07 in that area of responsibility. 08 (c) The potentially affected authorized dealers shall have at least 60 days to 09 provide additional information and comments to the manufacturer or distributor before 10 the manufacturer or distributor makes a final decision. 11 Article 3. General Product Provisions.  12 Sec. 45.27.200. Sale or shipment before agreement. A manufacturer or 13 distributor may not sell or ship a product to an authorized dealer before the authorized 14 dealer signs an agreement that complies with this chapter. 15 Sec. 45.27.210. Involuntary order or delivery. A manufacturer or distributor 16 may not coerce or attempt to coerce an authorized dealer to order or accept delivery of 17 a 18 (1) product or another item that the authorized dealer has not 19 voluntarily ordered; or 20 (2) product with a special feature, appliance, accessory, or equipment 21 that is not included in the manufacturer's or distributor's advertised list for the product. 22 Sec. 45.27.220. Refusal to deliver or ship. A manufacturer or distributor may 23 not, without just cause, refuse to deliver or ship, within 60 days after the authorized 24 dealer's order has been received, to an authorized dealer a product that the 25 manufacturer or distributor has publicly advertised is available for immediate delivery. 26 Sec. 45.27.230. Sale after termination or nonrenewal. After an effective 27 termination or nonrenewal of an agreement, a manufacturer or distributor shall 28 continue, for at least 24 months, to sell the authorized dealer parts for products sold by 29 the authorized dealer before the termination or nonrenewal. 30 Sec. 45.27.240. Delivery of products in reasonable quantities. A 31 manufacturer or distributor may not delay, refuse, or fail to deliver products in 01 reasonable quantities to an authorized dealer unless the delay, refusal, or failure is 02 caused by an act beyond the control of the manufacturer, the distributor, or a person 03 related to the manufacturer or distributor. 04 Sec. 45.27.250. Selection of delivery method. Unless otherwise provided by 05 the agreement, a manufacturer or distributor may not refuse to allow an authorized 06 dealer to select the method and carrier for the delivery of products to the authorized 07 dealer by the manufacturer or distributor. 08 Sec. 45.27.260. Product damage responsibility. (a) A manufacturer or 09 distributor is solely responsible for damage to a product that occurs before the 10 manufacturer or distributor delivers the product to a carrier. 11 (b) An authorized dealer is not responsible for damage to a new product that 12 occurs while the product is in the possession of the carrier unless the authorized dealer 13 selects the method of transportation and the carrier. 14 (c) An authorized dealer is solely responsible for damage to a new product 15 that occurs after the authorized dealer accepts the product from the carrier and before 16 delivery to the ultimate purchaser unless the damage results from a latent or hidden 17 defect or is not reasonably observable at the time the authorized dealer accepts the 18 product. An authorized dealer accepts a product when the authorized dealer signs a 19 delivery receipt for the product. 20 (d) An authorized dealer may refuse to accept a damaged product from a 21 manufacturer or distributor by giving written notice to the manufacturer or distributor 22 within 10 business days after the product is delivered to the authorized dealer. If an 23 authorized dealer refuses to accept the damaged product, the manufacturer or 24 distributor shall, within 10 days after receiving the notice from the authorized dealer, 25 credit the authorized dealer's account for the product cost that the manufacturer or 26 distributor charged to the authorized dealer and any freight and interest charged to the 27 authorized dealer for the product. 28 Article 4. Product Repurchase Requirements.  29 Sec. 45.27.300. Manufacturer or distributor mandatory repurchase. (a) If 30 an authorized dealer discontinues engaging in the business of being an authorized 31 dealer and gives 30 days' advance written notice of the discontinuance to the 01 manufacturer or distributor by mail, the manufacturer or distributor shall, at a 02 minimum, repurchase from the authorized dealer's inventory 03 (1) each new and unused product of the manufacturer that is 04 (A) a current model of the product; or 05 (B) a model of the product from the previous two years; and 06 (2) each product part that 07 (A) was purchased from the manufacturer or distributor; 08 (B) is listed in the manufacturers' parts price books in the past 09 two years; and 10 (C) has not been damaged or substantially altered to the 11 prejudice of the manufacturer or distributor while in the possession of the 12 authorized dealer. 13 (b) If an authorized dealer discontinues selling a particular product and gives 14 30 days' advance written notice of the discontinuance to the manufacturer or 15 distributor by mail, the manufacturer or distributor shall, at a minimum, repurchase 16 from the authorized dealer's inventory 17 (1) each new and unused discontinued product of the manufacturer that 18 is 19 (A) the current model of the discontinued product; or 20 (B) a model of the discontinued product from the previous two 21 years; and 22 (2) each discontinued product part that 23 (A) was purchased from the manufacturer or distributor; 24 (B) is listed in the manufacturers' parts price books in the past 25 two years; and 26 (C) has not been damaged or substantially altered to the 27 prejudice of the manufacturer or distributor while in the possession of the 28 authorized dealer. 29 Sec. 45.27.310. Timing of repurchase. A manufacturer or distributor shall 30 make the repurchase required by AS 45.27.300 within 30 days after the authorized 31 dealer submits to the manufacturer or distributor by mail the authorized dealer's final 01 inventory of all the products and product parts identified under AS 45.27.300 that 02 apply to the authorized dealer's discontinuance of the manufacturer's products. 03 Sec. 45.27.320. Optional retention. If an authorized dealer discontinues 04 engaging in the business of being an authorized dealer or discontinues selling a 05 particular make of product, the authorized dealer may, at the sole option of the 06 authorized dealer, retain some of the discontinued products and product parts to allow 07 for customer service, special orders, presold products, or another valid situation, as 08 determined in the sole discretion of the authorized dealer. 09 Sec. 45.27.330. Failure to repurchase. If a manufacturer or distributor fails, 10 without just cause, to make the repurchase required by AS 45.27.300, the 11 manufacturer or distributor shall pay the authorized dealer interest at the rate of 1.5 12 percent a month or fraction of a month on the inventory value of the products and 13 product parts that the manufacturer or distributor fails to repurchase. The interest 14 begins on the 31st day after the manufacturer or distributor receives the final inventory 15 under AS 45.27.310 and continues until the manufacturer or distributor completes the 16 required repurchase. 17 Sec. 45.27.340. Landed cost. (a) The amount of a repurchase required by 18 AS 45.27.300 shall be based on the authorized dealer's landed cost at the authorized 19 dealer's facility. 20 (b) An authorized dealer's landed cost shall be adjusted for any quarterly or 21 annual purchase rebates and credits given to the authorized dealer on the products and 22 product parts being repurchased. 23 Sec. 45.27.350. Carrier selection and costs. A manufacturer or distributor of 24 a product may select the method and carrier to transport a product repurchased under 25 AS 45.27.300 - 45.27.340, but is responsible for any transportation or storage costs for 26 the repurchased product. 27 Article 5. Product Warranties.  28 Sec. 45.27.400. Warranty provided. A manufacturer shall provide, through 29 the authorized dealer, to the product's ultimate purchaser from an authorized dealer the 30 manufacturer's standard written warranty, if any, that is in effect at the time of delivery 31 of the product to the authorized dealer. 01 Sec. 45.27.410. Defective products. (a) A manufacturer or distributor of a 02 defective product shall, during the original warranty period, pay, in accordance with 03 the standard warranty service claim procedures and methods of the industry and with 04 AS 45.27.400 - 45.27.500, an authorized dealer to complete factory-recommended 05 warranty repairs, solutions, and procedures to cure factory warranty problems with a 06 defective product. 07 (b) Except as provided by (c) of this section, a manufacturer or distributor 08 shall, within 30 days after an authorized dealer's request, provide the authorized dealer 09 with the original factory parts required to cure the defective product. 10 (c) If a manufacturer or distributor is unable to supply the authorized dealer 11 with adequate needed warranty service parts for a defective product within the 30 days 12 established by (b) of this section or by an agreed upon reasonable alternative time, the 13 authorized dealer may, at the authorized dealer's option, 14 (1) return the defective product, and the manufacturer or distributor 15 shall provide an identical product that is not defective; or 16 (2) receive full credit for the authorized dealer's landed cost of the 17 product, if the authorized dealer is the original selling authorized dealer. 18 (d) In this section, "defective product" means a product that is defective in 19 design, assembly, engineering, or manufacturing. 20 Sec. 45.27.420. Authorized dealer warranty representations. An authorized 21 dealer may not make a representation about the warranty that is not made by the 22 manufacturer in the written warranty. An authorized dealer shall deliver the manuals 23 on the operation and maintenance of a product to an ultimate purchaser and make the 24 manufacturer's warranty known to the ultimate purchaser, including all disclaimers 25 and limitations. 26 Sec. 45.27.430. Timely warranty service and claims. (a) An authorized 27 dealer shall provide timely warranty service in accordance with the manufacturer's 28 applicable warranty on all of the manufacturer's and distributor's products sold by the 29 authorized dealer. 30 (b) An authorized dealer shall make all claims for warranty reimbursement in 31 the manner established by the manufacturer. 01 Sec. 45.27.440. Basis for reimbursements. (a) A manufacturer or distributor 02 shall use the bases established in this section to reimburse an authorized dealer for all 03 approved warranty service work performed by the authorized dealer. 04 (b) A manufacturer or distributor shall pay to a servicing authorized dealer 05 warranty work labor rates that 06 (1) are at least the same as the authorized dealer customarily charges to 07 a customer for nonwarranty service work; and 08 (2) include time for clean-up, preparation, diagnosis, disassembly, 09 repair, assembly, testing, and final cleaning as needed to provide a quality result and 10 customer satisfaction. 11 (c) In addition to the payment under (b) of this section, the manufacturer or 12 distributor shall reimburse an authorized dealer a minimum of one hour at the 13 authorized dealer's shop standard labor rate for the administration of each warranty 14 claim. 15 (d) A manufacturer or distributor shall reimburse the authorized dealer for 16 product parts at the current manufacturer's full suggested retail price and shall ship 17 each part to the authorized dealer without cost for freight or handling. If a 18 manufacturer's full suggested retail price does not exist, the reimbursement shall be 19 calculated at 1.5 times the authorized dealer's landed cost. 20 Sec. 45.27.450. Shipping costs for returned items. (a) A manufacturer or 21 distributor shall pay for any costs incurred by the authorized dealer, plus 25 percent of 22 the normal authorized dealer's handling fee, for shipping a part replaced under a 23 warranty that the authorized dealer returns for testing, analysis, or inspection at the 24 request of the manufacturer or distributor. 25 (b) A request by the manufacturer, the distributor, or another person involved 26 in a product's warranty service to an authorized dealer to return a product or a product 27 part for analysis, testing, or inspection must be in writing and shall be made within 30 28 days after the filing date of the warranty claim submitted by the authorized dealer. 29 Sec. 45.27.460. Timely reimbursement for claims. A manufacturer or 30 distributor shall pay a properly submitted warranty claim within 30 days after 31 receiving the claim from an authorized dealer. If a manufacturer or distributor fails to 01 pay a claim within 30 days after receipt, the failure is considered an acceptance of the 02 claim as submitted, and the manufacturer or distributor shall pay the authorized dealer 03 interest at the rate of 1.5 percent a month on the claim. 04 Sec. 45.27.470. Boat package warranties and branding. (a) A manufacturer 05 or distributor of a marine product may enter into a warranty service agreement with a 06 marine authorized dealer of a boat package without violating the area of responsibility 07 of another authorized dealer who has an agreement to sell the brand of marine motor 08 that is part of the boat package. However, the warranty service agreement may not be 09 construed to permit the marine authorized dealer to sell the marine motor separately 10 from the boat package, and the marine authorized dealer may not hold itself out to be 11 an authorized dealer in the full line of marine engines. 12 (b) The boat package brand shall be determined by the brand of the boat. 13 Sec. 45.27.480. Performance of warranty service work. An authorized 14 dealer shall use a factory-certified or factory-trained technician to perform warranty 15 service work if factory certification or training is readily available. 16 Sec. 45.27.490. Warranty restrictions. A manufacturer may not, by 17 agreement, by restrictions on reimbursement, or by another method, restrict the nature 18 or extent of product parts provided or labor performed by an authorized dealer if the 19 restriction impairs the authorized dealer's ability to satisfy a warranty created by the 20 manufacturer in accordance with generally accepted standards. 21 Sec. 45.27.500. Warranty claim disapproval. If a manufacturer or distributor 22 disapproves a claim, the manufacturer or distributor shall issue a written notice of 23 disapproval to the authorized dealer within 30 days. The notice must contain the 24 specific reasons for the disapproval. 25 Article 6. Miscellaneous Business Practices.  26 Sec. 45.27.600. Liability resulting from audit. (a) An authorized dealer is not 27 liable to a manufacturer or distributor for money that an audit of the authorized 28 dealer's financial records determines to be owed to the manufacturer or distributor, or 29 to a wholesaler, distributor branch, or factory branch, if the money is a result of 30 transactions that occurred more than two years before the beginning of the audit, 31 unless the money is owed as a result of a fraudulent practice of the authorized dealer. 01 (b) An authorized dealer is not liable to a manufacture or distributor for 02 money if an audit shows that the authorized dealer failed to retain product parts for 03 more than three months. 04 Sec. 45.27.610. Competition with authorized dealer. A manufacturer or 05 distributor may not compete with an authorized dealer who is operating under an 06 agreement with a manufacturer or distributor in the same line, brand, model, or make 07 of product. 08 Sec. 45.27.620. Content of factory recall notices. A manufacturer or 09 distributor shall include in a written factory recall notice to ultimate purchasers and 10 authorized dealers the date by which the manufacturer or distributor expects that 11 necessary parts and equipment will be available to the authorized dealer for the 12 correction of the defect that is the subject of the recall. 13 Sec. 45.27.630. Advertising. A manufacturer or distributor may not use false 14 or misleading advertising in connection with an agreement with an authorized dealer 15 or in the operation of the manufacturer's or distributor's sale of products. 16 Sec. 45.27.640. Required posting. An authorized dealer shall post a notice of 17 the authorized dealer's retail labor rate in a place conspicuous to service customers. If 18 the authorized dealer uses a factory-certified or factory-trained technician to perform 19 warranty service work, the notice must also contain a statement that warranty service 20 work completed by the authorized dealer is performed by a factory-certified or 21 factory-trained technician. 22 Article 7. Miscellaneous Provisions.  23 Sec. 45.27.800. Unenforceable provisions. If a provision in an agreement 24 violates this chapter, the provision is not enforceable. 25 Sec. 45.27.810. Manufacturer and distributor liability. (a) A manufacturer 26 and a distributor shall indemnify and hold harmless an authorized dealer for damages, 27 including fines, suffered by the authorized dealer as a result of the manufacturer's or 28 distributor's violation of this chapter. 29 (b) Notwithstanding the terms of an agreement with an authorized dealer, a 30 manufacturer and a distributor shall indemnify and hold harmless an authorized dealer 31 for damages arising out of complaints, claims, or lawsuits, to the extent that the 01 damages arise out of alleged acts of the manufacturer and distributor, that 02 (1) relate to the authorized dealer's sale or other handling of the 03 manufacturer's or distributor's product; 04 (2) are beyond the control of the authorized dealer; and 05 (3) are based on strict liability, negligence, misrepresentation, express 06 warranty, implied warranty, or rescission. 07 (c) In this section, "damages" includes court costs and reasonable attorney fees 08 of the authorized dealer. 09 Sec. 45.27.820. Civil penalty. Notwithstanding AS 45.50.551, a person who 10 violates this chapter is liable to the state for a civil fine of not more than $5,000 for 11 each day the violation continues. 12 Sec. 45.27.830. Criminal penalty. A person who violates this chapter is guilty 13 of a class B misdemeanor. 14 Sec. 45.27.840. Cumulative provisions. The provisions of this chapter are in 15 addition to any other legal or equitable remedy available under law or under an 16 agreement between an authorized dealer and a manufacturer or distributor. 17 Article 8. General Provisions.  18 Sec. 45.27.900. Exemptions. The following persons are exempt from this 19 chapter: 20 (1) an authorized dealer located outside this state; 21 (2) a receiver, a trustee, an administrator, an executor, a guardian, and 22 other persons appointed by or acting under a court order; 23 (3) a public officer in the course of performing the public officer's 24 duties; 25 (4) a person who holds a security interest in a motor vehicle as part of 26 the sale of the motor vehicle to another person; 27 (5) an insurance company; 28 (6) an auctioneer and an auction house handling an estate auction, a 29 bankruptcy auction, a farm equipment auction, or a government auction, if the 30 auctioneer and auction house are not engaged in the auction of used products as the 31 principal part of their business. 01 Sec. 45.27.990. Definitions. In this chapter, unless the context indicates 02 otherwise, 03 (1) "agreement" means a franchise, sales, or other product agreement 04 with a manufacturer or distributor; 05 (2) "all-terrain vehicle" means a vehicle with three or more low- 06 pressure, flotation-type tires, as designed by the manufacturer or altered, to be used as 07 an off-road recreational vehicle, and includes a trailer for an all-terrain vehicle; 08 (3) "area of responsibility" means the area of an authorized dealer's 09 principal product sales and service responsibility; 10 (4) "authorized dealer" means a dealer who has entered into an 11 agreement with a manufacturer or distributor of products to sell or service the 12 manufacturer's or distributor's products; 13 (5) "boat" means a marine product that is not equipped with a motor; 14 (6) "boat package" means a boat that is equipped and sold with a motor 15 or another form of motorized propulsion; 16 (7) "distributor" means a person who 17 (A) sells or distributes products to authorized dealers; or 18 (B) maintains distributor representatives, including 19 wholesalers, distributor branches, and distributor sales representatives; 20 (8) "distributor sales representative" means an officer, agent, or 21 employee hired by a distributor to promote the sale of products or to supervise or 22 contact authorized dealers or prospective authorized dealers; 23 (9) "landed cost" means the total cost of a product delivered at a given 24 location, including the initial authorized dealer invoice price and any freight, 25 transportation, flooring expense, interest expense, authorized dealer preparation cost, 26 assembly cost, and reasonable handling cost; 27 (10) "mail" means registered or certified mail, return receipt requested; 28 (11) "manufacturer" means a person who fabricates, manufactures, or 29 assembles products; "manufacturer" includes a manufacturer branch and a 30 manufacturer sales representative, but does not include a person who converts, 31 modifies, or otherwise alters a product fabricated, manufactured, or assembled by 01 another person; 02 (12) "manufacturer sales representative" means an officer, agent, or 03 employee hired by a manufacturer to promote the sale of products or to supervise or 04 contact authorized dealers or prospective authorized dealers; 05 (13) "marine authorized dealer" means an authorized dealer of marine 06 products; 07 (14) "marine product" means a new watercraft, boat, or motor designed 08 for recreational or commercial use on water and a boat or watercraft trailer; "marine 09 product" includes an outboard motor or boat with an attached motor, but does not 10 include a watercraft designed or adapted to be powered only by an occupant's energy; 11 (15) "motorized recreational product" means an all-terrain vehicle, a 12 marine motor, boat, boat package, marine product, snow machine, and trailer; in this 13 paragraph, "snow machine" means a motorized vehicle with a gross vehicle weight 14 under 1,300 pounds propelled by a track system designed to move a person over snow 15 or ice, and includes a snowmobile; 16 (16) "part" includes an accessory; 17 (17) "product" means a marine product or a motorized recreational 18 product; 19 (18) "trailer" means a single vehicle without motive power that is 20 designed for carrying products wholly on its own structure, that is drawn by a motor 21 vehicle that does not carry part of the weight and load of the trailer on its own wheels, 22 and that has one or more axles, but does not include a semi-trailer, livestock trailer, or 23 dump trailer; 24 (19) "ultimate purchaser" means the first person, other than an 25 authorized dealer purchasing in the authorized dealer's capacity as an authorized 26 dealer, who, in good faith, purchases a new product for a purpose other than resale. 27 Sec. 45.27.995. Short title. This chapter may be cited as the Alaska Marine 28 Product and Motorized Recreational Product Act. 29  * Sec. 3. AS 45.45.770(a) is amended to read: 30 (a) AS 45.45.700 - 45.45.790 do not apply to 31 (1) a distributorship agreement that would be considered a franchise 01 regulated by 15 U.S.C. 2801 - 2841 (Petroleum Marketing Practices Act); 02 (2) a situation regulated by AS 45.50.800 - 45.50.850; 03 (3) a distributorship agreement, including a franchise agreement, for 04 the sale, repair, or servicing of motor vehicles that are required to be registered under 05 AS 28.10; 06 (4) an activity or agreement by a person licensed under AS 04 if the 07 activity or agreement is within the scope of the license or is incidental to the activity 08 or agreement that is within the scope of the license; 09 (5) a distributorship agreement or another contract between a person 10 licensed under AS 04 and a distributor, manufacturer, importer, supplier, or wholesaler 11 of alcoholic beverages who is not located in this state if the subject of the agreement 12 or contract is the distribution of alcoholic beverages to the licensed person by the 13 distributor, manufacturer, importer, supplier, or wholesaler; 14 (6) a distributor, manufacturer, importer, supplier, or wholesaler of 15 alcoholic beverages; 16 (7) a distributorship agreement for the sale or distribution of, or other 17 transaction involving, cigarettes, food, drink, or a component of food or drink; in this 18 paragraph, "cigarette" has the meaning given in AS 43.50.170; [OR] 19 (8) a manufacturer with 50 or fewer employees; or  20 (9) a marine product or motorized recreational product  21 agreement, as regulated under AS 45.27.  22  * Sec. 4. AS 45.50.471(b) is amended by adding a new paragraph to read: 23 (53) violating AS 45.27 (marine products and motorized recreational 24 products). 25  * Sec. 5. AS 45.50.572 is amended by adding a new subsection to read: 26 (m) AS 45.50.562 - 45.50.596 do not apply to action taken by a person to 27 comply with AS 45.27 or to action refrained from by a person to comply with 28 AS 45.27 (Alaska Marine Product and Motorized Recreational Product Act). 29  * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 30 read: 31 APPLICABILITY. This Act does not apply to an agreement that is entered into before 01 the effective date of this Act. In this section, "agreement" has the meaning given in 02 AS 45.27.990, enacted by sec. 2 of this Act.  03  * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 04 read: 05 TRANSITION: SALE OR SHIPMENT BEFORE AGREEMENT. Notwithstanding 06 AS 45.27.200, enacted by sec. 2 of this Act, within 180 days after the effective date of this 07 Act, a manufacturer or distributor may sell or ship a product to an authorized dealer before the 08 authorized dealer signs an agreement that complies with AS 45.27, enacted by this Act. In this 09 section, "agreement," "authorized dealer," "distributor," "manufacturer," and "product" have 10 the meanings given in AS 45.27.990, enacted by sec. 2 of this Act. 11  * Sec. 8. This Act takes effect immediately under AS 01.10.070(c).