Legislature(2023 - 2024)

2024-05-06 House Journal

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2024-05-06                     House Journal                      Page 2704
HB 233                                                                                                                        
The following was read the second time:                                                                                         

2024-05-06                     House Journal                      Page 2705
    HOUSE BILL NO. 233                                                                                                          
    "An Act relating to rates and time allowances for motor vehicle                                                             
    warranty work."                                                                                                             
                                                                                                                                
with the:                                                  Journal Page                                                         
                                                                                                                                
 L&C RPT 2DP 4NR 2396                                                                                                           
 FN1: ZERO(GOV/COMBINED) 2396                                                                                                   
 TRA RPT CS(TRA) NEW TITLE 2DP 4NR 1AM 2680                                                                                     
 FN1: ZERO(GOV/COMBINED) 2680                                                                                                   
                                                                                                                                
Representative Saddler moved and asked unanimous consent that the                                                               
following committee substitute be adopted in lieu of the original bill:                                                         
                                                                                                                                
    CS FOR HOUSE BILL NO. 233(TRA)                                                                                              
    "An Act relating to rates and time allowances for motor vehicle                                                             
    warranty work; and relating to unfair practices by manufacturers."                                                          
                                                                                                                                
Representative Eastman objected.                                                                                                
                                                                                                                                
The question being:  "Shall the House adopt CSHB 233(TRA)?" The                                                                 
roll was taken with the following result:                                                                                       
                                                                                                                                
HB 233                                                                                                                          
Second Reading                                                                                                                  
Adopt Transportation CS                                                                                                         
                                                                                                                                
YEAS:  37   NAYS:  1   EXCUSED:  0   ABSENT:  2                                                                               
                                                                                                                                
Yeas:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Dibert, Edgmon, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                              
Himschoot, C.Johnson, Josephson, McCabe, McKay, Mears, Mina,                                                                    
Ortiz, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw, Stapp,                                                                
Story, Stutes, Sumner, Tilton, Tomaszewski, Vance, Wright                                                                       
                                                                                                                                
Nays:  Eastman                                                                                                                  
                                                                                                                                
Absent:  D.Johnson, McCormick                                                                                                   
                                                                                                                                
And so, CSHB 233(TRA) was adopted.                                                                                              
                                                                                                                                
                                                                                                                                

2024-05-06                     House Journal                      Page 2706
Amendment No. 1 was offered  by Representative Eastman:                                                                          
                                                                                                                                
Page 2, line 7, following "hours":                                                                                              
    Insert "and fractions of an hour"                                                                                           
                                                                                                                                
Representative Eastman moved and asked unanimous consent that                                                                   
Amendment No. 1 be adopted.                                                                                                     
                                                                                                                                
There was objection.                                                                                                            
                                                                                                                                
The question being:  "Shall Amendment No. 1 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 233(TRA)                                                                                                                   
Second Reading                                                                                                                  
Amendment No. 1                                                                                                                 
                                                                                                                                
YEAS:  27   NAYS:  12   EXCUSED:  0   ABSENT:  1                                                                              
                                                                                                                                
Yeas:  Armstrong, Coulombe, Dibert, Eastman, Edgmon, Fields,                                                                    
Foster, Galvin, Gray, Groh, Hannan, Himschoot, C.Johnson, McKay,                                                                
Mears, Mina, Ortiz, Rauscher, Saddler, Schrage, Shaw, Stapp, Story,                                                             
Stutes, Tilton, Tomaszewski, Wright                                                                                             
                                                                                                                                
Nays:  Allard, Baker, Carpenter, Carrick, Cronk, Josephson, McCabe,                                                             
McCormick, Prax, Ruffridge, Sumner, Vance                                                                                       
                                                                                                                                
Absent:  D.Johnson                                                                                                              
                                                                                                                                
And so, Amendment No. 1 was adopted.                                                                                            
                                                                                                                                
Amendment No. 2 was offered  by Representative Sumner:                                                                           
                                                                                                                                
Page 3, following line 26:                                                                                                      
  Insert a new bill section to read:                                                                                            
   "* Sec. 6. AS 45.45.300 is amended by adding a new subsection to                                                           
read:                                                                                                                           
     "(b) The Department of Commerce Community and                                                                              
    Economic Development shall establish regulations for an                                                                     
    independent shop to make necessary repairs to conform a new                                                                 
    motor vehicle to the warranty.""                                                                                            
                                                                                                                                
Representative Sumner moved and asked unanimous consent that                                                                    
Amendment No. 2 be adopted.                                                                                                     

2024-05-06                     House Journal                      Page 2707
Representative Cronk objected.                                                                                                  
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 233(TRA) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  20   NAYS:  19   EXCUSED:  0   ABSENT:  1                                                                              
                                                                                                                                
Yeas:  Armstrong, Dibert, Edgmon, Fields, Foster, Galvin, Gray,                                                                 
Groh, Hannan, Himschoot, C.Johnson, McCormick, Mears, Mina,                                                                     
Ortiz, Prax, Schrage, Story, Stutes, Sumner                                                                                     
                                                                                                                                
Nays:  Allard, Baker, Carpenter, Carrick, Coulombe, Cronk, Eastman,                                                             
Josephson, McCabe, McKay, Rauscher, Ruffridge, Saddler, Shaw,                                                                   
Stapp, Tilton, Tomaszewski, Vance, Wright                                                                                       
                                                                                                                                
Absent:  D.Johnson                                                                                                              
                                                                                                                                
And so, Amendment No. 2 was adopted.                                                                                            
                                                                                                                                
Representative Tomaszewski moved and asked unanimous consent to                                                                 
rescind previous action in adopting Amendment No. 2.                                                                            
                                                                                                                                
There was objection.                                                                                                            
                                                                                                                                
The question being:  "Shall the House rescind previous action in                                                                
adopting Amendment No. 2?" The roll was taken with the following                                                                
result:                                                                                                                         
                                                                                                                                
CSHB 233(TRA) am                                                                                                                
Second Reading                                                                                                                  
Rescind Previous Action in adopting Amendment No. 2                                                                             
                                                                                                                                
YEAS:  25   NAYS:  14   EXCUSED:  0   ABSENT:  1                                                                              
                                                                                                                                
Yeas:  Allard, Baker, Carpenter, Carrick, Coulombe, Cronk, Eastman,                                                             
C.Johnson, D.Johnson, Josephson, McCabe, McCormick, McKay,                                                                      
Prax, Rauscher, Ruffridge, Saddler, Shaw, Stapp, Story, Stutes, Tilton,                                                         
Tomaszewski, Vance, Wright                                                                                                      
                                                                                                                                
Nays:  Armstrong, Dibert, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                           
Himschoot, Mears, Mina, Ortiz, Schrage, Sumner                                                                                  

2024-05-06                     House Journal                      Page 2708
                                                                                                                                
Absent:  Edgmon                                                                                                                 
                                                                                                                                
And so, the motion passed.                                                                                                      
                                                                                                                                
Amendment No. 2 was before the House (page 2706).                                                                               
                                                                                                                                
The question being:  "Shall Amendment No. 2 be adopted?" The roll                                                               
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 233(TRA) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 2                                                                                                                 
                                                                                                                                
YEAS:  18   NAYS:  22   EXCUSED:  0   ABSENT:  0                                                                              
                                                                                                                                
Yeas:  Armstrong, Dibert, Edgmon, Fields, Foster, Galvin, Gray,                                                                 
Groh, Hannan, Himschoot, C.Johnson, McCormick, Mears, Mina,                                                                     
Ortiz, Schrage, Stutes, Sumner                                                                                                  
                                                                                                                                
Nays:  Allard, Baker, Carpenter, Carrick, Coulombe, Cronk, Eastman,                                                             
D.Johnson, Josephson, McCabe, McKay, Prax, Rauscher, Ruffridge,                                                                 
Saddler, Shaw, Stapp, Story, Tilton, Tomaszewski, Vance, Wright                                                                 
                                                                                                                                
And so, Amendment No. 2 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 3 was offered  by Representative Gray:                                                                             
                                                                                                                                
Page 2, line 3:                                                                                                                 
    Delete "a new subsection"                                                                                                   
    Insert "new subsections"                                                                                                    
                                                                                                                                
Page 2, following line 3:                                                                                                       
    Insert a new subsection to read:                                                                                            
         "(j)  If a new motor vehicle dealer receives profits for                                                               
    performing warranty work as a result of the requirements of (c) of                                                          
    this section that are higher than the profits the new motor vehicle                                                         
    dealer receives for performing similar nonwarranty service work,                                                            
    the new motor vehicle dealer shall use those additional profits to                                                          
    increase the wages of the mechanics employed by the new motor                                                               
    vehicle dealer."                                                                                                            
                                                                                                                                
Reletter the following subsection accordingly.                                                                                  

2024-05-06                     House Journal                      Page 2709
Representative Gray moved and asked unanimous consent that                                                                      
Amendment No. 3 be adopted.                                                                                                     
                                                                                                                                
Representative Saddler objected.                                                                                                
                                                                                                                                
The question being:  "Shall Amendment No. 3 be adopted?"  The roll                                                              
was taken with the following result:                                                                                            
                                                                                                                                
CSHB 233(TRA) am                                                                                                                
Second Reading                                                                                                                  
Amendment No. 3                                                                                                                 
                                                                                                                                
YEAS:  9   NAYS:  31   EXCUSED:  0   ABSENT:  0                                                                               
                                                                                                                                
Yeas:  Carrick, Dibert, Fields, Galvin, Gray, Groh, Hannan,                                                                     
Himschoot, Ortiz                                                                                                                
                                                                                                                                
Nays:  Allard, Armstrong, Baker, Carpenter, Coulombe, Cronk,                                                                    
Eastman, Edgmon, Foster, C.Johnson, D.Johnson, Josephson,                                                                       
McCabe, McCormick, McKay, Mears, Mina, Prax, Rauscher,                                                                          
Ruffridge, Saddler, Schrage, Shaw, Stapp, Story, Stutes, Sumner,                                                                
Tilton, Tomaszewski, Vance, Wright                                                                                              
                                                                                                                                
And so, Amendment No. 3 was not adopted.                                                                                        
                                                                                                                                
Amendment No. 4 was offered  by Representative Sumner:                                                                           
                                                                                                                                
Page 1, line 1 (title amendment):                                                                                               
    Delete "and"                                                                                                              
                                                                                                                                
Page 1, line 2, following "manufacturers":                                                                                    
    Insert "; and relating to repairs to new motor vehicles under                                                             
warranty performed by shops"                                                                                                  
                                                                                                                                
Page 3, following line 26:                                                                                                      
    Insert new bill sections to read:                                                                                           
"* Sec. 6. AS 45.45.300 is amended to read:                                                                                   
         Sec. 45.45.300. Repairs required. If a new motor vehicle                                                             
    does not conform to an express warranty that is applicable to it                                                            
    and the owner of the vehicle reports the defect or condition to the                                                         
    manufacturer of the vehicle or to the manufacturer's or                                                                     
    distributor's dealer during the term of the warranty, the owner                                                         

2024-05-06                     House Journal                      Page 2710
    may choose to have the necessary repairs made to conform the                                                            
    vehicle to the warranty performed by                                                                                    
             (1)  the manufacturer, distributor, or dealer [,] or a                                                     
    repairing agent; or                                                                                                     
             (2)  a shop that has received a schedule of                                                                    
    compensation from the manufacturer or distributor [SHALL                                                                
    MAKE THE NECESSARY REPAIRS TO CONFORM THE                                                                                   
    VEHICLE TO THE EXPRESS WARRANTY].                                                                                           
   * Sec. 7. AS 45.45.300 is amended by adding new subsections to                                                             
read:                                                                                                                           
         (b)  If a manufacturer receives a report from an owner under                                                           
    (a) of this section and the owner chooses to have repairs                                                                   
    performed under (a)(1) of this section, the manufacturer,                                                                   
    distributor, dealer, or repairing agent shall make the necessary                                                            
    repairs to conform the vehicle to the express warranty.                                                                     
         (c)  If a manufacturer is sent a report from an owner under (a)                                                        
    of this section and the owner chooses to have repairs performed                                                             
    under (a)(2) of this section, a shop may perform the necessary                                                              
    repairs to conform the vehicle to the express warranty.                                                                     
   * Sec. 8. AS 45.45.305 is amended to read:                                                                                 
         Sec. 45.45.305. Replacement or refund. If, during the term                                                       
    of the express warranty or within one year from the date of                                                                 
    delivery of the motor vehicle to the original owner, whichever                                                              
    period terminates first, the person performing repairs under                                                            
    AS 45.45.300 [MANUFACTURER, DISTRIBUTOR, DEALER,                                                                        
    OR REPAIRING AGENT] is unable to conform the motor vehicle                                                                  
    to an applicable express warranty after a reasonable number of                                                              
    attempts, the manufacturer or distributor shall accept the return of                                                        
    the nonconforming motor vehicle, and, at the owner's option, shall                                                          
    replace the nonconforming vehicle with a new, comparable                                                                    
    vehicle or shall refund the full purchase price to the owner less a                                                         
    reasonable allowance for the use of the motor vehicle from the                                                              
    time it was delivered to the original owner. A refund under this                                                            
    section shall be made to a lienholder of record, if any, and the                                                            
    owner, as their interests may appear.                                                                                       
   * Sec. 9. AS 45.45.310 is amended to read:                                                                                 
         Sec. 45.45.310. Notice by owner. In order to claim a refund                                                          
    or replacement under AS 45.45.305, the owner shall give written                                                             
    notice by certified mail to the manufacturer and the person                                                             
    performing repairs under AS 45.45.300 [ITS DEALER OR                                                                    

2024-05-06                     House Journal                      Page 2711
    REPAIRING AGENT] at any time before 60 days have elapsed                                                                    
    after the expiration of the express warranty or the one-year period                                                         
    after the date of delivery of the motor vehicle to the original                                                             
    owner, whichever period terminates first, (1) stating that the                                                              
    vehicle has a nonconformity; (2) providing a reasonable                                                                     
    description of the nonconformity; (3) stating that [THE                                                                     
    MANUFACTURER, DISTRIBUTOR, DEALER, OR                                                                                       
    REPAIRING AGENT HAS MADE] a reasonable number of                                                                            
    attempts to conform the vehicle have been made and identifying                                                          
    who made those attempts under AS 45.45.305(a); and (4)                                                                  
    stating that the owner demands a refund or replacement vehicle to                                                           
    be delivered on the 60th day after the mailing of the written                                                               
    notice. Within 30 days after receiving the notice required by this                                                          
    section, the manufacturer may make a final attempt to conform the                                                       
    vehicle before a refund or replacement is made under                                                                        
    AS 45.45.305.                                                                                                               
   * Sec. 10. AS 45.45.315 is amended to read:                                                                                
         Sec. 45.45.315. Exceptions. An owner may not receive a                                                               
    refund or replacement under AS 45.45.300 - 45.45.360 if the                                                                 
    manufacturer or distributor shows that the nonconformity                                                                    
    complained of                                                                                                               
             (1)  does not substantially impair either the use or the                                                           
    market value of the motor vehicle; or                                                                                       
             (2)  is the result of                                                                                              
                 (A)  alteration of the motor vehicle by the owner or a                                                         
         person other than a person permitted to make the alteration                                                        
         under AS 45.45.300 [DEALER OR REPAIRING AGENT                                                                      
         THAT IS NOT AUTHORIZED BY THE                                                                                          
         MANUFACTURER OR DISTRIBUTOR]; or                                                                                       
                 (B)  abuse or neglect by the owner or a person other                                                           
         than a person permitted to perform repairs on the motor                                                            
         vehicle under AS 45.45.300 [THE DEALER OR                                                                          
         REPAIRING AGENT].                                                                                                      
   * Sec. 11. AS 45.45.320 is amended to read:                                                                                
         Sec. 45.45.320. Presumption. A presumption that a                                                                    
    reasonable number of attempts have been made to conform a                                                                   
    motor vehicle under an applicable express warranty is established                                                           
    if [:]                                                                                                                      
             (1)  the same nonconformity has been subject to repair                                                             
    three or more times under AS 45.45.300 [BY THE                                                                          

2024-05-06                     House Journal                      Page 2712
    MANUFACTURER, DISTRIBUTOR, DEALER, OR                                                                                       
    REPAIRING AGENT] during the term of the express warranty or                                                                 
    the one-year period after delivery of the motor vehicle to the                                                              
    original owner, whichever period terminates first, but the                                                                  
    nonconformity continues to exist; or                                                                                        
             (2)  the vehicle is out of service for repair for a total of 30                                                    
    or more business days during the express warranty term or the                                                               
    one-year period referred to in (1) of this section, whichever period                                                        
    terminates first; any period of time that repairs are not performed                                                         
    for reasons that are beyond the control of the person performing                                                        
    repairs under AS 45.45.300 [MANUFACTURER,                                                                               
    DISTRIBUTOR, DEALER, OR REPAIRING AGENT] is                                                                                 
    excluded from the 30-day time period referred to in this                                                                    
    paragraph.                                                                                                                  
   * Sec. 12. AS 45.45.325 is amended to read:                                                                                
         Sec. 45.45.325. Parts availability. A manufacturer whose                                                             
    vehicles are sold in the state through an authorized dealer shall                                                           
    provide a person performing repairs under AS 45.45.300 [ITS                                                             
    DEALER OR REPAIRING AGENT] with any part necessary to                                                                       
    make a repair of a nonconformity covered under an express                                                                   
    warranty, as soon as possible, without additional charge for freight                                                        
    or handling, if the part is not in the person's [DEALER'S OR                                                            
    AGENT'S] inventory when the nonconforming vehicle is brought                                                                
         to the person [DEALER OR REPAIRING AGENT] for repair.                                                             
   * Sec. 13. AS 45.45.340 is amended to read:                                                                                
         Sec. 45.45.340. Other rights and remedies. The provisions                                                            
    of AS 45.45.300 - 45.45.360 do not limit other rights and                                                                   
    remedies that may be available to the owner of a motor vehicle                                                              
    under other provisions of law. This section does not create a new                                                           
    cause of action against a dealer or repairing agent who sells or                                                            
    against a person who attempts to repair under AS 45.45.300 a                                                        
    motor vehicle found to be nonconforming under AS 45.45.300 -                                                                
    45.45.360.                                                                                                                  
   * Sec. 14. AS 45.45 is amended by adding new sections to read:                                                             
         Sec. 45.45.356. Schedule of compensation for shops. (a) A                                                            
    shop may request a schedule of compensation from a                                                                          
    manufacturer or distributor. Upon receiving a request that                                                                  
    complies with this section, the manufacturer or distributor shall                                                           
    provide the shop with the schedule of compensation that the                                                                 
    manufacturer or distributor will pay to the shop to perform                                                                 

2024-05-06                     House Journal                      Page 2713
    necessary repairs under AS 45.45.300(a)(2).                                                                                 
         (b)  The schedule of compensation must include                                                                         
    compensation for parts and labor. The compensation for parts                                                                
    must include the average retail percentage markup that the shop                                                             
    charges. The compensation for labor must include the rates and                                                              
     time allowances for labor performed under AS 45.45.300(a)(2).                                                             
         (c)  Unless otherwise agreed to by the manufacturer or                                                                 
    distributor and the shop, the schedule of compensation may not                                                              
    contain                                                                                                                     
             (1)  rates less than the rates that the shop charges retail                                                        
    customers for similar nonwarranty service work; and                                                                         
             (2) time allowances less than time allowances provided in                                                          
    independent labor time guides.                                                                                              
         (d)  To establish the retail percentage markup, the shop shall                                                         
    submit to the manufacturer or distributor 100 sequential                                                                    
    chronologically issued retail service repair orders paid by                                                                 
    customers for warranty-like repairs or 90 consecutive days of                                                               
    retail service repair orders paid by customers for warranty-like                                                            
    repairs, whichever number of retail service repair orders is fewer.                                                         
    The retail service repair orders that the shop submits must cover                                                           
    retail repairs that the shop made less than 180 days before the                                                             
    shop submits the orders to the manufacturer or distributor.                                                                 
         (e)  A manufacturer or distributor may not require a shop to                                                           
    establish the retail percentage markup by a method other than the                                                           
    method required by (d) of this section. When establishing the                                                               
    retail percentage markup, the manufacturer or distributor may not                                                           
    require the shop to provide information that is unduly burdensome                                                           
    or time consuming to provide, including part-by-part or                                                                     
    transaction-by-transaction calculations.                                                                                    
         (f)  A manufacturer or distributor may not include in the                                                              
    calculation of the rates in the schedule of compensation                                                                    
             (1)  repairs for manufacturer or distributor special events,                                                       
    specials, or promotional discounts;                                                                                         
             (2)  parts sold at wholesale;                                                                                      
             (3)  routine maintenance not covered under warranty,                                                               
    including the replacement of fluids, filters, and belts, unless the                                                         
    shop provides the routine maintenance in the course of making a                                                             
    repair;                                                                                                                     
             (4)  nuts, bolts, fasteners, and similar items that do not                                                         
    have an individual part number;                                                                                             

2024-05-06                     House Journal                      Page 2714
             (5)  tires, batteries, and light bulbs;                                                                            
             (6)  vehicle reconditioning; and                                                                                   
             (7)  repair orders for motor vehicle body repairs if an                                                            
    insurer pays for the repairs.                                                                                               
         (g)  The retail percentage markup calculated under (d) of this                                                         
    section may not take effect more than 30 days after the                                                                     
    manufacturer or distributor approves the shop's proposed rate, or                                                           
    after the manufacturer or distributor is considered to have                                                                 
    approved the shop's proposed rate under this section. If the                                                                
    manufacturer or distributor does not disapprove the shop's                                                                  
    proposed rate within 30 days after the shop submits the rate                                                                
    application, then the shop's proposed rate shall be considered                                                              
    approved.                                                                                                                   
         (h)  A manufacturer or distributor may disapprove a rate                                                               
    proposed by a shop under this section if the manufacturer or                                                                
    distributor demonstrates that the proposed rate is materially                                                               
    miscalculated or unreasonable compared to other similarly                                                                   
    situated shops, dealers, or repairing agents in this state.                                                                 
         (i)  A shop may not receive more than one rate increase under                                                          
    this section in a calendar year.                                                                                            
         (j)  In this section,                                                                                                  
             (1) "rate" means the dollar amount that a manufacturer                                                             
    pays a shop for one hour of labor;                                                                                          
             (2) "time allowance" has the meaning given in                                                                      
    AS 45.25.210(j).                                                                                                            
         Sec. 45.45.358. Payment and approval of claims from                                                                  
    shops. (a) A manufacturer or distributor shall pay a shop for                                                             
    approved repairs performed under AS 45.45.300(a)(2) in                                                                      
    accordance with the schedule of compensation that applies to the                                                            
    repairs when the shop makes the repairs.                                                                                    
         (b)  A shop shall submit a claim for a repair performed under                                                          
    AS 45.45.300(a)(2) to the manufacturer or distributor within 90                                                             
    days after the shop completes the work on the new motor vehicle.                                                            
    The shop shall submit the claim in the manner that the                                                                      
    manufacturer or distributor requires.                                                                                       
         (c)  Within 30 days after the manufacturer or distributor                                                              
    receives a claim from a shop under (b) of this section, the                                                                 
    manufacturer or distributor shall approve or disapprove the claim                                                           
    and notify the shop of the reasons for disapproving the claim in                                                            
    writing or electronically. The shop may correct and resubmit the                                                            

2024-05-06                     House Journal                      Page 2715
    claim within 30 days after the shop receives the written or                                                                 
    electronic notice that the manufacturer or distributor disapproved                                                          
    the claim. If a manufacturer or distributor does not disapprove a                                                           
    claim as required by this subsection, the claim is considered                                                               
    approved. The manufacturer or distributor shall pay the claim                                                               
    within 30 days after the approval of the claim.                                                                             
         (d)  Notwithstanding the reporting requirement of                                                                      
    AS 45.45.300, a manufacturer or distributor may not deny a claim                                                            
    for a repair performed under AS 45.45.300(a)(2) that was                                                                    
    discovered and properly repaired by the shop during the course of                                                           
    a separate repair if the shop                                                                                               
             (1)  has already received a schedule of compensation                                                               
    from the manufacturer or distributor; and                                                                                   
             (2)  provides to the manufacturer or distributor the                                                               
     required documentation demonstrating the need for the repair.                                                             
         (e)  A manufacturer or distributor may initiate or conduct an                                                          
    audit to determine the validity of paid claims for repairs                                                                  
    performed under AS 45.45.300(a)(2) only if the manufacturer or                                                              
    distributor initiates the audit within one year after the payment of                                                        
    the claim. The manufacturer or distributor may audit a shop                                                                 
    performing repairs under AS 45.45.300(a)(2) once in a calendar                                                              
    year to determine the validity of claims paid to the shop.                                                                  
         (f)  Notwithstanding the limitations under (e) of this section, if                                                     
    a manufacturer or distributor reasonably suspects fraud, the                                                                
    manufacturer or distributor may audit a shop for fraudulent claims                                                          
    during any period in which an action for fraud may be commenced                                                             
    under applicable state law.                                                                                                 
         (g)  In this section, "fraud" has the meaning given in                                                                 
    AS 45.25.990.                                                                                                               
   * Sec. 15. AS 45.45.360 is amended by adding new paragraphs to                                                             
read:                                                                                                                           
             (13)  "schedule of compensation" means a schedule                                                                  
    established under AS 45.45.356 that includes parts, rates for labor,                                                        
    and time allowances for labor;                                                                                              
             (14)  "shop" has the meaning given in AS 45.45.240, but                                                            
    does not include a dealer or repairing agent when performing                                                                
    warranty repairs in the state on a motor vehicle under a franchise                                                          
    agreement with or under the specific authority of a manufacturer                                                            
    or dealer.                                                                                                                  
   * Sec. 16. The uncodified law of the State of Alaska is amended by                                                         

2024-05-06                     House Journal                      Page 2716
adding a new section to read:                                                                                                   
    APPLICABILITY. This Act applies to an express warranty for a                                                                
new motor vehicle provided on or after the effective date of this Act."                                                         
                                                                                                                                
Representative Sumner moved and asked unanimous consent that                                                                    
Amendment No. 4 be adopted.                                                                                                     
                                                                                                                                
Representative Stapp objected.                                                                                                  
                                                                                                                                
Representative Sumner moved and asked unanimous consent to                                                                      
withdraw Amendment No. 4.  There being no objection, it was so                                                                  
ordered.                                                                                                                        
                                                                                                                                
Representative Saddler moved and asked unanimous consent that                                                                   
CSHB 233(TRA) am be considered engrossed, advanced to third                                                                     
reading, and placed on final passage.  There being no objection, it was                                                         
so ordered.                                                                                                                     
                                                                                                                                
CSHB 233(TRA) am was read the third time.                                                                                       
                                                                                                                                
The question being:  "Shall CSHB 233(TRA) am pass the House?"                                                                   
The roll was taken with the following result:                                                                                   
                                                                                                                                
CSHB 233(TRA) am                                                                                                                
Third Reading                                                                                                                   
Final Passage                                                                                                                   
                                                                                                                                
YEAS:  35   NAYS:  2   EXCUSED:  0   ABSENT:  3                                                                               
                                                                                                                                
Yeas:  Allard, Armstrong, Baker, Carpenter, Carrick, Coulombe,                                                                  
Cronk, Dibert, Fields, Foster, Galvin, Gray, Groh, Hannan,                                                                      
Himschoot, C.Johnson, Josephson, McCabe, McCormick, McKay,                                                                      
Mears, Mina, Prax, Rauscher, Ruffridge, Saddler, Schrage, Shaw,                                                                 
Stapp, Story, Stutes, Tilton, Tomaszewski, Vance, Wright                                                                        
                                                                                                                                
Nays:  Eastman, Sumner                                                                                                          
                                                                                                                                
Absent:  Edgmon, D.Johnson, Ortiz                                                                                               
                                                                                                                                
And so, CSHB 233(TRA) am passed the House and was referred to                                                                   
the Chief Clerk for engrossment.