HCS CSSB 105(JUD): "An Act relating to motor vehicle dealers and to agents for motor vehicle buyers; and providing for an effective date."
00HOUSE CS FOR CS FOR SENATE BILL NO. 105(JUD) 01 "An Act relating to motor vehicle dealers and to agents for motor vehicle 02 buyers; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 08.66 is amended by adding a new section to read: 05 Sec. 08.66.015. SALE OF MOTOR VEHICLE. (a) A person who does 06 business as a dealer in the state may not offer to sell or sell a motor vehicle as a new 07 or current model motor vehicle unless the motor vehicle retains the manufacturer's 08 certificate of origin. 09 (b) A person who does business as a dealer in the state may not offer to sell 10 or sell a motor vehicle as a new or current model motor vehicle having a 11 manufacturer's warranty unless 12 (1) the dealer has a current sales and service agreement with the 13 manufacturer and the agreement requires the dealer, upon demand of the motor vehicle 14 buyer, to perform or arrange for, within a reasonable distance of the dealer's place of
01 business in the state, the repair and replacement work required of the manufacturer 02 under the warranty; or 03 (2) the dealer offers to give the buyer a rebate to cover the repair and 04 replacement work that the dealer cannot perform or arrange for within a reasonable 05 distance of the dealer's place of business. 06 * Sec. 2. AS 08.66.030 is amended to read: 07 Sec. 08.66.030. FORM OF APPLICATION. The Department of Public Safety 08 shall prescribe and furnish the form of application for dealer registration. The 09 application must contain 10 (1) the name under which the business is conducted; 11 (2) the location of business; 12 (3) the name and address of all persons having an interest in the 13 business [,] and, in the case of a corporation, the application shall contain the name 14 and address of the two principal officers; 15 (4) the name and make of all vehicles handled; 16 (5) whether or not used vehicles are handled; 17 (6) a statement that the applicant is a bona fide dealer in motor 18 vehicles, trailers, or semi-trailers with an established business at the location given; 19 (7) if the applicant sells a motor vehicle as a new or current model 20 motor vehicle having a manufacturer's warranty, the name of the manufacturer 21 of the motor vehicle and the date and duration of the applicant's sales and service 22 agreement with the manufacturer; 23 (8) other information the Department of Public Safety requires to 24 administer AS 08.66.010 - 08.66.090 [THIS CHAPTER]. 25 * Sec. 3. AS 08.66.080 is amended to read: 26 Sec. 08.66.080. PENALTIES. A dealer who fails to register and file a bond 27 as required by AS 08.66.010 - 08.66.090 [THIS CHAPTER] shall pay a penalty of 28 $100. A dealer who knowingly [WILFULLY] violates a provision of AS 08.66.010 - 29 08.66.090 [THIS CHAPTER] is guilty of a class B misdemeanor [, AND UPON 30 CONVICTION IS PUNISHABLE BY A FINE OF NOT MORE THAN $300]. 31 * Sec. 4. AS 08.66.090 is amended to read:
01 Sec. 08.66.090. DEALER DEFINED. In AS 08.66.010 - 08.66.090, [THIS 02 CHAPTER] "dealer" means a person, or an agent, broker, or salesman of a person who 03 is engaged in buying, selling, or dealing in new or used motor vehicles, trailers, or 04 semi-trailers in the state, but does not include a buyer's agent when acting in the 05 capacity of a buyer's agent. In this section, "buyer's agent" has the meaning 06 given in AS 08.66.350. 07 * Sec. 5. AS 08.66 is amended by adding new sections to read: 08 ARTICLE 2. BUYERS' AGENTS. 09 Sec. 08.66.200. REGISTRATION OF BUYER'S AGENT. A person may not 10 do business in the state by negotiating on behalf of a buyer the purchase of a motor 11 vehicle from a motor vehicle dealer unless the person is registered with the Department 12 of Public Safety. 13 Sec. 08.66.210. APPLICATION, BOND, AND FEE. (a) In order to register 14 under AS 08.66.200, a person shall file with the department an application, a bond 15 required by AS 08.66.240, and an application fee established by the department by 16 regulation. 17 (b) The department shall prescribe and furnish the form of application for the 18 registration. The application must contain 19 (1) the name under which the business is conducted; 20 (2) the address of the main office of the business; 21 (3) the name and address of all persons having an interest in the 22 business, and in the case of a corporation the application shall contain the name and 23 address of the two principal officers; and 24 (4) other information the department requires. 25 Sec. 08.66.220. DEPARTMENT APPROVAL. The department shall approve 26 an application for registration under AS 08.66.210 if the application contains the 27 information required by AS 08.66.210 and the bond complies with AS 08.66.240. 28 Sec. 08.66.230. RENEWAL OF REGISTRATION. A buyer's agent shall 29 renew the registration required by AS 08.66.200 every two years by filing with the 30 department a request for renewal, the bond required by AS 08.66.240, and a renewal 31 fee established by the department by regulation.
01 Sec. 08.66.240. BOND. (a) An applicant for registration under AS 08.66.210 02 or for renewal of a registration under AS 08.66.230 shall file with the application or 03 request for renewal, and shall maintain in force while registered, a $10,000 bond that 04 is in favor of the state and that is executed by an authorized corporate surety approved 05 by the department. 06 (b) Instead of the corporate surety bond required by (a) of this section, the 07 department may, in the department's sole discretion, accept a bond in the same amount 08 with at least two individual sureties. A surety shall provide as security real property 09 that has a fair market value that is equal to two times the amount of the bond. The 10 department shall investigate as necessary the actual financial responsibility of the 11 individual sureties. 12 (c) The bond required by this section is conditioned on the applicant 13 complying with AS 08.66.200 - 08.66.350 and not committing fraud or making 14 fraudulent representations in the course of doing business as a buyer's agent. 15 (d) A surety may cancel the bond after giving the department 30 days' advance 16 written notice. Cancellation does not relieve a surety of liability arising on the bond 17 from a purchase negotiated by the bonded buyer's agent before cancellation or a 18 liability that accrues against the bond before cancellation. The department shall retain 19 the cancelled bond on file. 20 Sec. 08.66.250. ACTION ON BOND. If a person suffers loss or damage by 21 reason of a buyer's agent, or a person doing business as a buyer's agent, violating 22 AS 08.66.200 - 08.66.350 or committing fraud or making fraudulent representations 23 in the course of doing business as a buyer's agent, the person may bring an action 24 against the buyer's agent and the surety upon the bond. The aggregate liability of the 25 surety may not exceed the amount of the bond. 26 Sec. 08.66.260. BUYER'S AGENT CONTRACT REQUIRED. (a) Before a 27 buyer's agent negotiates on behalf of a buyer the purchase of a motor vehicle from a 28 motor vehicle dealer, the buyer's agent must have a written contract with the buyer. 29 (b) The contract required by (a) of this section must include a description of 30 the specific services to be provided by the buyer's agent, the date when the buyer's 31 agent will provide the services, and a description of the fees that the buyer's agent will
01 charge, including any fee that the buyer is to pay before the motor vehicle is delivered 02 to the buyer. 03 Sec. 08.66.270. PURCHASE AGREEMENT. A buyer's agent shall arrange 04 for the buyer's purchase agreement with the dealer to provide all warranty information, 05 including the warranty expiration date, mileage limitations, and other restrictions. The 06 warranty information must be specific to the motor vehicle being purchased. 07 Sec. 08.66.280. FEES OF BUYER'S AGENT. (a) A buyer's agent may not 08 collect a fee from a buyer before the agent and the buyer enter into the contract 09 required by AS 08.66.260. 10 (b) A buyer's agent may not calculate the fee of the buyer's agent as a 11 percentage of the motor vehicle purchase price or of the savings achieved by the agent 12 for the buyer on the purchase of the motor vehicle. 13 (c) Until the motor vehicle is delivered to the buyer, a buyer's agent shall hold 14 in trust in a bank account a fee that the agent receives before the buyer receives the 15 motor vehicle. 16 Sec. 08.66.290. OWNERSHIP INTEREST PROHIBITED. A buyer's agent 17 may not own an interest in the motor vehicle that is the subject of the purchase that 18 the agent is negotiating for the buyer. 19 Sec. 08.66.300. CERTAIN COMPENSATION PROHIBITED. A buyer's 20 agent may not accept a rebate, kickback, commission, or other form of compensation 21 from a financial institution, motor vehicle dealer, or other person, except the buyer, on 22 a motor vehicle purchase that the agent negotiates for a buyer. 23 Sec. 08.66.310. DUAL AGENCY PROHIBITED. When representing a buyer, 24 a buyer's agent may not act as an agent for the motor vehicle dealer. 25 Sec. 08.66.320. RECORDS OF BUYER'S AGENT. A buyer's agent shall 26 maintain complete records of each motor vehicle purchase the agent negotiates, 27 including the purchase arrangements and monetary transactions. The records must 28 include 29 (1) copies of advertisements, brochures, and pamphlets issued, used, or 30 distributed by the buyer's agent during the sales transaction; 31 (2) the original contract between the buyer's agent and the buyer;
01 (3) copies of any purchase orders issued by the buyer's agent; 02 (4) evidence of the delivery of the motor vehicle to the buyer; 03 (5) a copy of the purchase agreement between the buyer and the motor 04 vehicle dealer; and 05 (6) a copy of any service agreement between the manufacturer and the 06 motor vehicle dealer. 07 Sec. 08.66.330. PENALTY. A person who knowingly violates AS 08.66.200 -08.66.350 is guilty of a class B 08 misdemeanor. 09 Sec. 08.66.350. DEFINITIONS. In AS 08.66.200 - 08.66.350, 10 (1) "buyer's agent" means a person who does business in the state by 11 negotiating on behalf of a buyer the purchase of a motor vehicle from a motor vehicle 12 dealer; 13 (2) "department" means the Department of Public Safety; 14 (3) "motor vehicle dealer" means a person who is engaged in the 15 business of buying, selling, or dealing in new or used motor vehicles and maintains an 16 inventory of motor vehicles for sale. 17 * Sec. 6. AS 45.50.471(b) is amended by adding new paragraphs to read: 18 (33) violating AS 08.66.010 - 08.66.090 (motor vehicle dealers); 19 (34) violating AS 08.66.200 - 08.66.350 (motor vehicle buyers' agents). 20 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).