Enrolled HB 36: Relating to an application for a license to operate as a dealer in motor vehicles; relating to the duties of a motor vehicle dealer; and requiring a dealer in motor vehicles to maintain liability and property insurance.

00Enrolled HB 36 01 Relating to an application for a license to operate as a dealer in motor vehicles; relating to the 02 duties of a motor vehicle dealer; and requiring a dealer in motor vehicles to maintain liability 03 and property insurance. 04 _______________ 05 * Section 1. AS 08.66.030 is amended to read: 06 Sec. 08.66.030. Form of application. The department shall prescribe and 07 furnish the form of application for dealer registration under AS 08.66.010. The 08 application must contain 09 (1) the name under which the business is conducted; 10 (2) the location and telephone number of the business; 11 (3) the name and address of all persons having an interest in the 12 business and, in the case of a corporation, the application shall contain the name and 13 address of the two principal officers; 14 (4) the name and make of all vehicles handled;

01 (5) a statement of whether or not used vehicles are handled; 02 (6) a statement that the applicant is a bona fide dealer in motor 03 vehicles with an established business at the location given; 04 (7) a statement that no person holding a five percent or greater 05 interest in the business has, during the five-year period immediately preceding 06 the date of the application, been convicted of a felony if the felony involved fraud, 07 embezzlement, or misappropriation of property; 08 (8) a statement that the applicant has reviewed the workers' 09 compensation insurance requirements of AS 23.30 and will maintain applicable 10 workers' compensation insurance as required under AS 23.30; 11 (9) a copy of a certificate of insurance documenting that the 12 applicant maintains the insurance coverage required under AS 08.66.085; 13 (10) if the applicant sells a motor vehicle as a new or current model 14 motor vehicle having a manufacturer's warranty, the name of the manufacturer of the 15 motor vehicle and the date and duration of the applicant's sales and service agreement 16 with the manufacturer; and 17 (11) [(8)] other information the department requires to administer this 18 chapter. 19 * Sec. 2. AS 08.66.040 is amended to read: 20 Sec. 08.66.040. Filing application for registration; identification of dealer. 21 The application shall be filed with the department. Upon receipt of the application, the 22 department shall examine it and may make an investigation of the information in it. If 23 the department is satisfied that the dealer is entitled to registration, and the fees have 24 been paid and a bond filed, the department shall assign a distinctive registration 25 number to the dealer and file the dealer's application and index it alphabetically and 26 numerically. A dealer is registered when the department assigns a registration number. 27 A dealer shall inform each person who purchases a vehicle from the dealer that 28 the dealer is registered under this chapter and provide the dealer's registration 29 number. 30 * Sec. 3. AS 08.66.060(a) is amended to read: 31 (a) An applicant for a dealer registration under AS 08.66.010 shall file with

01 the application and shall maintain in force while registered a bond in favor of the state 02 that is executed by a surety approved by the commissioner. The amount of the bond 03 shall be $100,000 [$50,000], except that the amount of a bond for a dealer who sells 04 only motorcycles shall be $25,000. The bond must be conditioned on the dealer's 05 (1) doing business in compliance with this chapter and the other laws 06 of this state; and 07 (2) not committing fraud or making fraudulent representations in the 08 course of doing business as a dealer. 09 * Sec. 4. AS 08.66 is amended by adding a new section to read: 10 Sec. 08.66.085. Insurance requirements. A dealer in motor vehicles shall 11 maintain liability insurance for bodily injury and property damage on an auto dealer's 12 form.