CSHB 233(TRA) am: "An Act relating to rates and time allowances for motor vehicle warranty work; and relating to unfair practices by manufacturers."
00 CS FOR HOUSE BILL NO. 233(TRA) am 01 "An Act relating to rates and time allowances for motor vehicle warranty work; and 02 relating to unfair practices by manufacturers." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.25.210(b) is amended to read: 05 (b) The schedule of compensation must include compensation for parts and 06 labor and must comply with this section. The compensation for parts must include the 07 average retail percentage markup that the new motor vehicle dealer charges. The 08 compensation for labor must include the rates and time allowances for warranty 09 work. 10 * Sec. 2. AS 45.25.210(c) is amended to read: 11 (c) Unless otherwise agreed to by the manufacturer and the new motor vehicle 12 dealer, [THE RATES IN] the schedule of compensation may not contain 13 (1) rates [MAY NOT BE] less than the rates that the new motor 14 vehicle dealer charges retail customers for similar nonwarranty service work; and
01 (2) time allowances less than time allowances provided in 02 independent labor time guides. 03 * Sec. 3. AS 45.25.210 is amended by adding a new subsection to read: 04 (j) In this section, 05 (1) "rate" means the dollar amount that a manufacturer pays a new 06 motor vehicle dealer for one hour of labor; 07 (2) "time allowance" means the maximum number of hours and 08 fractions of an hour of labor that may be billed for a particular job. 09 * Sec. 4. AS 45.25.300 is amended to read: 10 Sec. 45.25.300. Unfair practices. A manufacturer may not 11 (1) require, coerce, or attempt to coerce a new motor vehicle dealer to 12 change the location of the new motor vehicle dealership or to make any substantial 13 alterations to the new motor vehicle dealership premises or facilities if the alterations 14 would be unreasonable or if there is not expected to be a sufficient supply of new 15 motor vehicles to justify the change of location or the alterations because of market 16 and economic conditions; this paragraph does not apply to alterations that are 17 necessary to comply with health or safety laws; in this paragraph, "substantial 18 alterations" does not include erecting signs subject to the manufacturer's intellectual 19 property rights, doing interior painting that is necessary to keep a new motor vehicle 20 dealer facility in an attractive condition, or performing routine maintenance; 21 (2) require a new motor vehicle dealer to purchase or include in 22 inventory a predetermined number or percentage of certified pre-owned motor 23 vehicles or lease return motor vehicles; 24 (3) except because of reasons beyond the manufacturer's control, 25 refuse or fail to deliver or offer for sale in reasonable quantities to a new motor vehicle 26 dealer holding a franchise for a line make of new motor vehicles sold or distributed by 27 the manufacturer a new motor vehicle, part, or accessory, if the new motor vehicle, 28 part, or accessory is being delivered to other new motor vehicle dealers; this paragraph 29 does not apply to limited edition or limited release vehicle parts or accessories; 30 (4) require a new motor vehicle dealer to purchase unreasonable 31 advertising displays or other materials or an unreasonable number of signs;
01 (5) require a new motor vehicle dealer to order or accept delivery of a 02 new motor vehicle, part, accessory, piece of equipment, promotional material, display 03 device, display decoration, or other item that is not otherwise required by law and that 04 the new motor vehicle dealer does not voluntarily order; this paragraph does not apply 05 to safety and emissions recall campaign parts or to a motor vehicle feature, part, 06 accessory, or other component required by federal law, the law of this state, or local 07 law; 08 (6) coerce, attempt to coerce, or require a new motor vehicle dealer to 09 (A) join, contribute money to, or affiliate with an advertising 10 association; or 11 (B) participate monetarily in an advertising campaign; [OR] 12 (7) increase the price of a new motor vehicle that the new motor 13 vehicle dealer has ordered from the manufacturer and for which there exists at the time 14 of the order a bona fide sale to a retail or fleet purchaser if the dealer submitted the 15 order to the manufacturer before the manufacturer provided the new motor vehicle 16 dealer with an official written price increase notification; or 17 (8) recover the manufacturer's costs for compensating a new 18 motor vehicle dealer for warranty work by reducing the amount due to or 19 imposing a separate charge, surcharge, administrative fee, or other similar cost 20 on the new motor vehicle dealer; this paragraph does not prohibit a 21 manufacturer from increasing the price of a new motor vehicle or changing a 22 schedule of compensation in the ordinary course of business. 23 * Sec. 5. AS 45.25.990(18) is amended to read: 24 (18) "schedule of compensation" means a schedule of compensation 25 established under AS 45.25.210 that includes parts, rates for labor, and time 26 allowances for labor;