Alaska 30th Legislature (2017-2018) Status: Enacted Bipartisan · 2 D · 2 R cosponsors

HB 136 — An Act relating to motor vehicle franchises, motor vehicle dealers, motor vehicle manufacturers, and motor vehicle distributors.

Last action — EFFECTIVE DATE(S) OF LAW 9/30/18

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed House
  4. ✓
    Passed Senate
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 20, 2017. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 98% · high confidence
  • Enacted

    Current position in the legislative process.

  • 12 sponsors

    1 primary, 11 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (2 D · 2 R) — cross-party backing.

  • Cleared a recorded vote

    Passed 2 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

Bill Text

What changed in the latest version

14 added · 14 removed

Plain-language change summary

The latest version of HB 136 has added explicit legislative findings that emphasize the importance of motor vehicle distribution to Alaska's economy and the need for fair competition among dealers. Additionally, the bill contains new provisions that ensure manufacturers must compensate dealers for certain relocation or facility costs upon franchise termination if those changes were required by the manufacturer. These updates aim to protect local dealers and consumers, ensuring they receive fair treatment in maintaining their businesses and services. Overall, these changes are significant as they create clearer expectations for manufacturers while supporting the local automotive market's stability.

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Alaska State Legislature The Alaska State Legislature menu Home Senate Current Members Past Members By Session Alphabetical House Current Members Past Members By Session Alphabetical Bills & Laws Bills All Introduced Actions by Date Awaiting Actions Bills sent to Conf Committee Bills in Committee Governor's Vetoes Passed Legislation Prefile Bill Summary Requestor Summary Statistics Sponsor Summary Subject Summary Laws Constitution Constitutional Convention Files Statutes Executive Orders - Current Executive Orders - Historical Administrative Code Journals Session Laws & Resolves Session Laws & Resolves 2017 Session Laws & Resolves 2018 - Previous Year Session Law - Previous Year Legislative Resolves Tools Statute Information Retrieval System Bill Tracking Management Facility Past Legislatures (Archives) Committees Hearing Schedule Standing Committees Finance Committees Special Committees Joint Committees Conference Committees Other Committees Minutes Publications Get Started Information Offices Legislative Affairs Legislative Agencies Links Legislative Branch Executive Branch Judicial Branch Alaska Delegation Home Bill & Laws Bills Enrolled HB 136 Detail FullText txt Enrolled HB 136:
"An Act relating to motor vehicle franchises, motor vehicle dealers, motor vehicle manufacturers, and motor vehicle distributors." CS FOR HOUSE BILL NO.
Relating to motor vehicle franchises, motor vehicle dealers, motor vehicle manufacturers, and motor vehicle distributors.
136(TRA) 01 "An Act relating to motor vehicle franchises, motor vehicle dealers, motor vehicle 02 manufacturers, and motor vehicle distributors." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
00Enrolled HB 136 01 Relating to motor vehicle franchises, motor vehicle dealers, motor vehicle manufacturers, and 02 motor vehicle distributors.
04 * Section 1.
03 _______________ 04 * Section 1.
and 29 (6) the lesser of the fair market value or the depreciated value, all 30 manufacturer required computers, printers, and other electronic hardware, and 31 electronic software, except, if the new motor vehicle dealer leases the computers, printers, or other electronic hardware, or electronic software, the manufacturer 02 shall pay the new motor vehicle dealer the amount of money that is required for 03 the new motor vehicle dealer to terminate the lease under the lease agreement.
and 29 (6) the lesser of the fair market value or the depreciated value, all 30 manufacturer required computers, printers, and other electronic hardware, and 31 electronic software, except that, if the new motor vehicle dealer leases the computers, printers, or other electronic hardware, or electronic software, the 02 manufacturer shall pay the new motor vehicle dealer the amount of money that is 03 required for the new motor vehicle dealer to terminate the lease under the lease 04 agreement.
04 * Sec.
05 * Sec.
05 (b) This section does not relieve a new motor vehicle dealer of the obligation 06 to mitigate 07 (1) damages under a lease, prevent a manufacturer from occupying and 08 using the new motor vehicle dealer's facilities while paying rent, or preclude a 09 manufacturer from negotiating a lease termination, sublease, or new lease;
06 (b) This section does not relieve a new motor vehicle dealer of the obligation 07 to mitigate 08 (1) damages under a lease, prevent a manufacturer from occupying and 09 using the new motor vehicle dealer's facilities while paying rent, or preclude a 10 manufacturer from negotiating a lease termination, sublease, or new lease;
or 10 (2) the costs of the relocation, substantial alteration, and 11 remodeling of the new motor vehicle dealer's facilities for which payments are 12 required under (f) of this section.
or 11 (2) the costs of the relocation, substantial alteration, and 12 remodeling of the new motor vehicle dealer's facilities for which payments are 13 required under (f) of this section.
13 * Sec.
14 * Sec.
14 (f) In addition to the payment required under AS 45.25.140 and (a) of this 15 section, upon termination of a franchise agreement by the manufacturer under this 16 chapter, the manufacturer shall, at the request and option of the new motor vehicle 17 dealer, pay the new motor vehicle dealer the new motor vehicle dealer's cost for a 18 relocation, substantial alteration, or remodeling of the new motor vehicle dealer's 19 facilities to the extent used for the manufacturer's franchise, if 20 (1) the manufacturer required the relocation, substantial alteration, or 21 remodeling of the new motor vehicle dealer's facilities for a continuation or renewal of 22 the franchise agreement;
15 (f) In addition to the payment required under AS 45.25.140 and (a) of this 16 section, upon termination of a franchise agreement by the manufacturer under this 17 chapter, the manufacturer shall, at the request and option of the new motor vehicle 18 dealer, pay the new motor vehicle dealer the new motor vehicle dealer's cost for a 19 relocation, substantial alteration, or remodeling of the new motor vehicle dealer's 20 facilities to the extent used for the manufacturer's franchise, if 21 (1) the manufacturer required the relocation, substantial alteration, or 22 remodeling of the new motor vehicle dealer's facilities for a continuation or renewal of 23 the franchise agreement;
and 23 (2) the relocation, substantial alteration, or remodeling of the new 24 motor vehicle dealer's facilities was completed within three years before the 25 termination or is in process when the new motor vehicle dealer receives the notice of 26 termination.
and 24 (2) the relocation, substantial alteration, or remodeling of the new 25 motor vehicle dealer's facilities was completed within three years before the 26 termination or is in process when the new motor vehicle dealer receives the notice of 27 termination.
27 * Sec.
28 * Sec.
28 Sec.
29 Sec.
Prevention of or refusal to honor transfer of new motor 29 vehicle dealership ownership.
Prevention of or refusal to honor transfer of new motor 30 vehicle dealership ownership.
(a) A manufacturer may not unreasonably prevent or 30 refuse to honor the transfer of ownership of a new motor vehicle dealership to a buyer 31 who is capable of being licensed as a new motor vehicle dealer in this state and who meets the standards established by the manufacturer, if the standards are reasonable 02 and applied uniformly.
(a) A manufacturer may not unreasonably prevent or 31 refuse to honor the transfer of ownership of a new motor vehicle dealership to a buyer who is capable of being licensed as a new motor vehicle dealer in this state and who 02 meets the standards established by the manufacturer, if the standards are reasonable 03 and applied uniformly.
03 (b) Within 30 days after receipt of a written request from a new motor vehicle 04 dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer 05 may request, and the new motor vehicle dealer shall promptly provide, supplementary 06 information that is reasonably necessary for the manufacturer to determine whether the 07 manufacturer will approve the request for the transfer.
04 (b) Within 30 days after receipt of a written request from a new motor vehicle 05 dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer 06 may request, and the new motor vehicle dealer shall promptly provide, supplementary 07 information that is reasonably necessary for the manufacturer to determine whether the 08 manufacturer will approve the request for the transfer.
If a manufacturer refuses to 08 approve the transfer, the manufacturer shall give written notice to the new motor 09 vehicle dealer of the refusal.
If a manufacturer refuses to 09 approve the transfer, the manufacturer shall give written notice to the new motor 10 vehicle dealer of the refusal.
The manufacturer shall give the notice to the new motor 10 vehicle dealer within 75 days after the date the manufacturer has received both the 11 written transfer request and supplementary information requested under this 12 subsection.
The manufacturer shall give the notice to the new motor 11 vehicle dealer within 75 days after the date the manufacturer has received both the 12 written transfer request and supplementary information requested under this 13 subsection.
The notice must state the specific grounds for the refusal to approve the 13 transfer.
The notice must state the specific grounds for the refusal to approve the 14 transfer.
The manufacturer shall give the notice under this subsection by personal 14 service or certified mail with return receipt requested.
The manufacturer shall give the notice under this subsection by personal 15 service or certified mail with return receipt requested.
If the manufacturer does not 15 give the notice within the time allowed under this subsection and does not exercise a 16 right of first refusal under (c) of this section, the request shall be considered approved.
If the manufacturer does not 16 give the notice within the time allowed under this subsection and does not exercise a 17 right of first refusal under (c) of this section, the request shall be considered approved.
17 (c) A manufacturer or distributor may exercise a contractual right of first 18 refusal with respect to the proposed sale or other transfer of the interest of the dealer in 19 a new motor vehicle dealership if 20 (1) the sale or other transfer is to a person who is not a family member 21 of an owner of the dealership, a managerial employee of the dealership owning 15 22 percent or more of the dealership, or a corporation, partnership, or other legal entity 23 owned by the existing owners of the dealership;
18 (c) A manufacturer or distributor may exercise a contractual right of first 19 refusal with respect to the proposed sale or other transfer of the interest of the dealer in 20 a new motor vehicle dealership if 21 (1) the sale or other transfer is to a person who is not a family member 22 of an owner of the dealership, a managerial employee of the dealership owning 15 23 percent or more of the dealership, or a corporation, partnership, or other legal entity 24 owned by the existing owners of the dealership;
in this paragraph, "family member" 24 means 25 (A) the spouse of an owner of the dealership;
in this paragraph, "family member" 25 means 26 (A) the spouse of an owner of the dealership;
26 (B) the child, stepchild, grandchild, brother, sister, or parent of 27 an owner of the dealership;
27 (B) the child, stepchild, grandchild, brother, sister, or parent of 28 an owner of the dealership;
or 28 (C) a spouse of a person identified in (B) of this paragraph;
or 29 (C) a spouse of a person identified in (B) of this paragraph;
29 (2) the manufacturer or distributor notifies the new motor vehicle 30 dealer in writing of the intent to exercise the right of first refusal;
30 (2) the manufacturer or distributor notifies the new motor vehicle 31 dealer in writing of the intent to exercise the right of first refusal;
within 30 days after 31 receipt of a written request from a new motor vehicle dealer for transfer of the ownership of a new motor vehicle dealership, a manufacturer or distributor may 02 request, and the new motor vehicle dealer shall promptly provide, related information 03 generally used by a manufacturer or distributor to conduct its review of a proposed 04 intent to exercise the right of first refusal and supplementary information that is 05 reasonably necessary for the manufacturer or distributor to determine whether the 06 manufacturer or distributor will exercise the right of first refusal;
within 30 days after receipt of a written request from a new motor vehicle dealer for transfer of the 02 ownership of a new motor vehicle dealership, a manufacturer or distributor may 03 request, and the new motor vehicle dealer shall promptly provide, related information 04 generally used by a manufacturer or distributor to conduct its review of a proposed 05 intent to exercise the right of first refusal and supplementary information that is 06 reasonably necessary for the manufacturer or distributor to determine whether the 07 manufacturer or distributor will exercise the right of first refusal;
if the manufacturer 07 or distributor decides to exercise the right of first refusal, the manufacturer or 08 distributor shall give written notice to the new motor vehicle dealer of the decision 09 within 75 days after receiving the completed transfer request, related information, and 10 requested supplementary information;
if the manufacturer 08 or distributor decides to exercise the right of first refusal, the manufacturer or 09 distributor shall give written notice to the new motor vehicle dealer of the decision 10 within 75 days after receiving the completed transfer request, related information, and 11 requested supplementary information;
the manufacturer or distributor shall give the 11 notice under this subsection by personal service or certified mail with return receipt 12 requested;
the manufacturer or distributor shall give the 12 notice under this paragraph by personal service or certified mail with return receipt 13 requested;
if the manufacturer or distributor fails to notify the dealer within the 75-day 13 period that the manufacturer or distributor will exercise the right of first refusal, the 14 manufacturer or distributor may not exercise the right of first refusal;
if the manufacturer or distributor fails to notify the dealer within the 75-day 14 period that the manufacturer or distributor will exercise the right of first refusal, the 15 manufacturer or distributor may not exercise the right of first refusal;
15 (3) the exercise of the right of first refusal provides to the new motor 16 vehicle dealer the same compensation as, or greater compensation than, the new motor 17 vehicle dealer had negotiated to receive from the proposed buyer or other transferee;
16 (3) the exercise of the right of first refusal provides to the new motor 17 vehicle dealer the same compensation as, or greater compensation than, the new motor 18 vehicle dealer had negotiated to receive from the proposed buyer or other transferee;
18 and 19 (4) the manufacturer or distributor agrees to pay the reasonable 20 expenses, including reasonable attorney and accountant fees that do not exceed the 21 usual, customary, and reasonable fees charged for similar work done in the state for 22 other clients, incurred before the manufacturer or distributor exercised its right of first 23 refusal by the proposed buyer or transferee to negotiate and implement the terms of 24 the contract for the sale or transfer.
19 and 20 (4) the manufacturer or distributor agrees to pay the reasonable 21 expenses, including reasonable attorney and accountant fees that do not exceed the 22 usual, customary, and reasonable fees charged for similar work done in the state for 23 other clients, incurred before the manufacturer or distributor exercised its right of first 24 refusal by the proposed buyer or transferee to negotiate and implement the terms of 25 the contract for the sale or transfer.
25 * Sec.
26 * Sec.
26 (d) When determining whether good cause exists for establishing or relocating 27 an additional new motor vehicle dealer for the same line make, the superior court shall 28 consider the existing circumstances, including 29 (1) whether the establishment of an additional franchise or relocation 30 of the existing new motor vehicle dealer appears to be warranted by economic and 31 marketing conditions, including anticipated future changes;
27 (d) When determining whether good cause exists for establishing or relocating 28 an additional new motor vehicle dealer for the same line make, the superior court shall 29 consider the existing circumstances, including 30 (1) whether the establishment of an additional franchise or relocation 31 of the existing new motor vehicle dealer appears to be warranted by economic and marketing conditions, including anticipated future changes;
(2) the retail sales and service business transacted by the protesting 02 new motor vehicle dealer and other new motor vehicle dealers of the same line make 03 with a place of business in the relevant market area to be served by the additional 04 franchise or proposed new location of an existing new motor vehicle dealer during the 05 three-year period immediately preceding the notice;
02 (2) the retail sales and service business transacted by the protesting 03 new motor vehicle dealer and other new motor vehicle dealers of the same line make 04 with a place of business in the relevant market area to be served by the additional 05 franchise or proposed new location of an existing new motor vehicle dealer during the 06 three-year period immediately preceding the notice;
06 (3) the investment necessarily made and obligations incurred by the 07 protesting new motor vehicle dealer to perform the protesting new motor vehicle 08 dealer's obligations under existing franchise agreements;
07 (3) the investment necessarily made and obligations incurred by the 08 protesting new motor vehicle dealer to perform the protesting new motor vehicle 09 dealer's obligations under existing franchise agreements;
09 (4) the permanency of the investment of the protesting new motor 10 vehicle dealer;
10 (4) the permanency of the investment of the protesting new motor 11 vehicle dealer;
[AND] 11 (5) whether it is beneficial or injurious to the public welfare for an 12 additional franchise to be established or for the existing new motor vehicle dealer to 13 be relocated;
[AND] 12 (5) whether it is beneficial or injurious to the public welfare for an 13 additional franchise to be established or for the existing new motor vehicle dealer to 14 be relocated;
14 (6) whether the manufacturer has denied the manufacturer's 15 existing new motor vehicle dealer of the same line make the opportunity for 16 reasonable growth, market expansion, or relocation;
15 (6) whether the manufacturer has denied the manufacturer's 16 existing new motor vehicle dealer of the same line make the opportunity for 17 reasonable growth, market expansion, or relocation;
and 17 (7) whether the proposed relocation is farther away from the 18 protesting new motor vehicle dealer.
and 18 (7) whether the proposed relocation is farther away from the 19 protesting new motor vehicle dealer.
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19 * Sec.
20 * Sec.
20 (f) Under this section, a manufacturer has the burden of proving that good 21 cause exists for permitting the proposed establishment or relocation of a new motor 22 vehicle dealer that the manufacturer has proposed, and the new motor vehicle dealer 23 has the burden of proving that good cause exists for permitting the proposed 24 establishment or relocation of a new motor vehicle dealer that the new motor vehicle 25 dealer has proposed.
21 (f) Under this section, a manufacturer has the burden of proving that good 22 cause exists for permitting the proposed establishment or relocation of a new motor 23 vehicle dealer that the manufacturer has proposed, and the new motor vehicle dealer 24 has the burden of proving that good cause exists for permitting the proposed 25 establishment or relocation of a new motor vehicle dealer that the new motor vehicle 26 dealer has proposed.
26 * Sec.
27 * Sec.
27 Sec.
28 Sec.
In a controversy between a manufacturer and a 28 new motor vehicle dealer under AS 45.25.010 - 45.25.310 [AS 45.25.010 - 45.25.320], 29 neither the manufacturer nor the new motor vehicle dealer is required to submit the 30 controversy to arbitration.
In a controversy between a manufacturer and a 29 new motor vehicle dealer under AS 45.25.010 - 45.25.310 [AS 45.25.010 - 45.25.320], 30 neither the manufacturer nor the new motor vehicle dealer is required to submit the 31 controversy to arbitration.
If both the manufacturer and the new motor vehicle dealer 31 agree to submit a controversy under AS 45.25.010 - 45.25.310 [AS 45.25.010 - 45.25.320] to arbitration, the arbitration shall be conducted under AS 09.43.010 - 02 09.43.180 (Uniform Arbitration Act) or AS 09.43.300 - 09.43.595 (Revised Uniform 03 Arbitration Act), as applicable, the manufacturer and the new motor vehicle dealer 04 shall each select one arbitrator, and both the manufacturer and the new motor vehicle 05 dealer shall select the third arbitrator.
If both the manufacturer and the new motor vehicle dealer agree to submit a controversy under AS 45.25.010 - 45.25.310 [AS 45.25.010 - 02 45.25.320] to arbitration, the arbitration shall be conducted under AS 09.43.010 - 03 09.43.180 (Uniform Arbitration Act) or AS 09.43.300 - 09.43.595 (Revised Uniform 04 Arbitration Act), as applicable, the manufacturer and the new motor vehicle dealer 05 shall each select one arbitrator, and both the manufacturer and the new motor vehicle 06 dealer shall select the third arbitrator.
06 * Sec.
07 * Sec.
07 Sec.
08 Sec.
(a) A manufacturer shall 08 pay a new motor vehicle dealer for all warranty work.
(a) A manufacturer shall 09 pay a new motor vehicle dealer for all warranty work.
The manufacturer may not deny 09 a claim for warranty work to resolve a condition discovered and properly repaired by 10 the dealer during the course of a separate repair, if the dealer provides the required 11 documentation demonstrating the need for the repair.
The manufacturer may not deny 10 a claim for warranty work to resolve a condition discovered and properly repaired by 11 the dealer during the course of a separate repair, if the dealer provides the required 12 documentation demonstrating the need for the repair.
A manufacturer shall pay the 12 new motor vehicle dealer for the approved warranty repairs in accordance with the 13 schedule of compensation that applies to the repairs when the new motor vehicle 14 dealer makes the repairs.
A manufacturer shall pay the 13 new motor vehicle dealer for the approved warranty repairs in accordance with the 14 schedule of compensation that applies to the repairs when the new motor vehicle 15 dealer makes the repairs.
15 (b) A new motor vehicle dealer shall submit a claim for warranty work to the 16 manufacturer within 90 days after the new motor vehicle dealer completes the work on 17 the new motor vehicle.
16 (b) A new motor vehicle dealer shall submit a claim for warranty work to the 17 manufacturer within 90 days after the new motor vehicle dealer completes the work on 18 the new motor vehicle.
The new motor vehicle dealer shall submit the claim in the 18 manner that the manufacturer requires.
The new motor vehicle dealer shall submit the claim in the 19 manner that the manufacturer requires.
19 (c) Within 30 days after the manufacturer receives a claim from a new motor 20 vehicle dealer under (b) of this section, the manufacturer shall approve or disapprove 21 the claim in writing or electronically.
20 (c) Within 30 days after the manufacturer receives a claim from a new motor 21 vehicle dealer under (b) of this section, the manufacturer shall approve or disapprove 22 the claim in writing or electronically.
If a manufacturer does not disapprove a claim as 22 required by this subsection, the claim is considered approved.
If a manufacturer does not disapprove a claim as 23 required by this subsection, the claim is considered approved.
The manufacturer shall 23 pay the claim within 30 days after the approval of the claim.
The manufacturer shall 24 pay the claim within 30 days after the approval of the claim.
24 (d) If a manufacturer disapproves a claim that the new motor vehicle dealer 25 submits under (b) of this section, a manufacturer shall notify the new motor vehicle 26 dealer in writing or electronically and shall state the reasons for disapproving the 27 claim.
25 (d) If a manufacturer disapproves a claim that the new motor vehicle dealer 26 submits under (b) of this section, a manufacturer shall notify the new motor vehicle 27 dealer in writing or electronically and shall state the reasons for disapproving the 28 claim.
A new motor vehicle dealer may correct and resubmit the claim within 30 days 28 after the new motor vehicle dealer receives the written or electronic notice that the 29 manufacturer disapproved the claim.
A new motor vehicle dealer may correct and resubmit the claim within 30 days 29 after the new motor vehicle dealer receives the written or electronic notice that the 30 manufacturer disapproved the claim.
30 (e) A manufacturer may not initiate or conduct an audit to determine the 31 validity of paid claims for new motor vehicle dealer warranty work unless the manufacturer initiates the audit within one year after the payment of the claim.
31 (e) A manufacturer may not initiate or conduct an audit to determine the validity of paid claims for new motor vehicle dealer warranty work unless the 02 manufacturer initiates the audit within one year after the payment of the claim.
The 02 manufacturer may not perform more than one audit in a calendar year to determine the 03 validity of paid claims for new motor vehicle dealer warranty work.
The 03 manufacturer may not perform more than one audit in a calendar year to determine the 04 validity of paid claims for new motor vehicle dealer warranty work.
04 (f) A manufacturer may not initiate or conduct an audit to determine the 05 validity of paid incentive claims unless the manufacturer initiates the audit within one 06 year after the payment of the claim or the conclusion of the incentive program, 07 whichever event occurs later.
05 (f) A manufacturer may not initiate or conduct an audit to determine the 06 validity of paid incentive claims unless the manufacturer initiates the audit within one 07 year after the payment of the claim or the conclusion of the incentive program, 08 whichever event occurs later.
The manufacturer may not perform more than one audit 08 in a calendar year to determine the validity of paid incentive claims.
The manufacturer may not perform more than one audit 09 in a calendar year to determine the validity of paid incentive claims.
09 (g) Notwithstanding the limitations under (e) and (f) of this section, if a 10 manufacturer reasonably suspects fraud, the manufacturer may audit a dealer for 11 fraudulent claims during any period in which an action for fraud may be commenced 12 under applicable state law.
10 (g) Notwithstanding the limitations under (e) and (f) of this section, if a 11 manufacturer reasonably suspects fraud, the manufacturer may audit a dealer for 12 fraudulent claims during any period in which an action for fraud may be commenced 13 under applicable state law.
13 Sec.
14 Sec.
(a) A manufacturer shall 14 provide each of its new motor vehicle dealers with the schedule of compensation that 15 the manufacturer shall pay to the new motor vehicle dealer for warranty work that the 16 manufacturer requires the new motor vehicle dealer to perform for the manufacturer's 17 products.
(a) A manufacturer shall 15 provide each of its new motor vehicle dealers with the schedule of compensation that 16 the manufacturer shall pay to the new motor vehicle dealer for warranty work that the 17 manufacturer requires the new motor vehicle dealer to perform for the manufacturer's 18 products.
18 (b) The schedule of compensation must include compensation for parts and 19 labor and must comply with this section.
19 (b) The schedule of compensation must include compensation for parts and 20 labor and must comply with this section.
The compensation for parts must include the 20 average retail percentage markup that the new motor vehicle dealer charges.
The compensation for parts must include the 21 average retail percentage markup that the new motor vehicle dealer charges.
21 (c) Unless otherwise agreed to by the manufacturer and the new motor vehicle 22 dealer, the rates in the schedule of compensation may not be less than the rates that the 23 new motor vehicle dealer charges retail customers for similar nonwarranty service 24 work.
22 (c) Unless otherwise agreed to by the manufacturer and the new motor vehicle 23 dealer, the rates in the schedule of compensation may not be less than the rates that the 24 new motor vehicle dealer charges retail customers for similar nonwarranty service 25 work.
25 (d) To establish the retail percentage markup, the new motor vehicle dealer 26 shall submit to the manufacturer 100 sequential chronologically issued retail service 27 repair orders paid by customers for warranty-like repairs, or 90 consecutive days of 28 retail service repair orders paid by customers for warranty-like repairs, whichever 29 number of retail service repair orders is less.
26 (d) To establish the retail percentage markup, the new motor vehicle dealer 27 shall submit to the manufacturer 100 sequential chronologically issued retail service 28 repair orders paid by customers for warranty-like repairs, or 90 consecutive days of 29 retail service repair orders paid by customers for warranty-like repairs, whichever 30 number of retail service repair orders is less.
The retail service repair orders that the 30 new motor vehicle dealer submits must cover retail repairs that the new motor vehicle 31 dealer made less than 180 days before the new motor vehicle dealer submits them to the manufacturer.
The retail service repair orders that the 31 new motor vehicle dealer submits must cover retail repairs that the new motor vehicle dealer made less than 180 days before the new motor vehicle dealer submits them to 02 the manufacturer.
02 (e) A manufacturer may not require a new motor vehicle dealer to establish 03 the retail percentage markup by a method other than the method required by (d) of this 04 section.
03 (e) A manufacturer may not require a new motor vehicle dealer to establish 04 the retail percentage markup by a method other than the method required by (d) of this 05 section.
When establishing the retail percentage markup, a manufacturer may not 05 require the new motor vehicle dealer to provide information that is unduly 06 burdensome or time consuming to provide, including part-by-part or transaction-by- 07 transaction calculations.
When establishing the retail percentage markup, a manufacturer may not 06 require the new motor vehicle dealer to provide information that is unduly 07 burdensome or time consuming to provide, including part-by-part or transaction-by- 08 transaction calculations.
08 (f) A manufacturer may not include in the calculation of the rates in the 09 schedule of compensation 10 (1) repairs for manufacturer special events, manufacturer specials, or 11 manufacturer promotional discounts;
09 (f) A manufacturer may not include in the calculation of the rates in the 10 schedule of compensation 11 (1) repairs for manufacturer special events, manufacturer specials, or 12 manufacturer promotional discounts;
12 (2) parts sold at wholesale;
13 (2) parts sold at wholesale;
13 (3) routine maintenance not covered under warranty, including the 14 replacement of fluids, filters, and belts, unless the new motor vehicle dealer provides 15 the routine maintenance in the course of making a repair;
14 (3) routine maintenance not covered under warranty, including the 15 replacement of fluids, filters, and belts, unless the new motor vehicle dealer provides 16 the routine maintenance in the course of making a repair;
16 (4) nuts, bolts, fasteners, and similar items that do not have an 17 individual part number;
17 (4) nuts, bolts, fasteners, and similar items that do not have an 18 individual part number;
18 (5) tires, batteries, and light bulbs;
19 (5) tires, batteries, and light bulbs;
19 (6) vehicle reconditioning;
20 (6) vehicle reconditioning;
and 20 (7) repair orders for motor vehicle body repairs if an insurer pays for 21 the repairs.
and 21 (7) repair orders for motor vehicle body repairs if an insurer pays for 22 the repairs.
22 (g) The retail percentage markup calculated under (d) of this section may not 23 take effect more than 30 days after the manufacturer approves the dealer's proposed 24 rate, or after the manufacturer is considered to have approved the dealer's proposed 25 rate under this section.
23 (g) The retail percentage markup calculated under (d) of this section may not 24 take effect more than 30 days after the manufacturer approves the dealer's proposed 25 rate, or after the manufacturer is considered to have approved the dealer's proposed 26 rate under this section.
If a manufacturer does not disapprove the dealer's proposed 26 rate within 30 days after the new motor vehicle dealer submits the rate application, 27 then the dealer's proposed rate shall be considered approved.
If a manufacturer does not disapprove the dealer's proposed 27 rate within 30 days after the new motor vehicle dealer submits the rate application, 28 then the dealer's proposed rate shall be considered approved.
28 (h) A manufacturer may disapprove a rate proposed by the new motor vehicle 29 dealer under this section if the manufacturer demonstrates that the proposed rate is 30 materially miscalculated or unreasonable compared to other similarly situated new 31 motor vehicle dealers in this state.
29 (h) A manufacturer may disapprove a rate proposed by the new motor vehicle 30 dealer under this section if the manufacturer demonstrates that the proposed rate is 31 materially miscalculated or unreasonable compared to other similarly situated new motor vehicle dealers in this state.
(i) A new motor vehicle dealer may not receive more than one rate increase 02 under this section in a calendar year.
02 (i) A new motor vehicle dealer may not receive more than one rate increase 03 under this section in a calendar year.
03 Sec.
04 Sec.
(a) 04 Except as provided in (b) of this section, if a new motor vehicle needs repairs that are 05 covered under a manufacturer's warranty, and if the new motor vehicle is located in a 06 remote location, the manufacturer shall make reasonable efforts to arrange for the new 07 motor vehicle to be repaired in the remote location.
(a) 05 Except as provided in (b) of this section, if a new motor vehicle needs repairs that are 06 covered under a manufacturer's warranty, and if the new motor vehicle is located in a 07 remote location, the manufacturer shall make reasonable efforts to arrange for the new 08 motor vehicle to be repaired in the remote location.
08 (b) If a manufacturer determines that repairs cannot reasonably be made in a 09 remote location within the manufacturer's guidelines, the manufacturer may arrange, at 10 no cost to the owner of the new motor vehicle, to ship the new motor vehicle to a 11 repair facility outside of the remote location and to return the new motor vehicle to the 12 remote location after the repairs are completed.
09 (b) If a manufacturer determines that repairs cannot reasonably be made in a 10 remote location within the manufacturer's guidelines, the manufacturer may arrange, at 11 no cost to the owner of the new motor vehicle, to ship the new motor vehicle to a 12 repair facility outside of the remote location and to return the new motor vehicle to the 13 remote location after the repairs are completed.
13 (c) A manufacturer may direct a new motor vehicle dealer of the manufacturer 14 to refer customers of the new motor vehicle dealer to the manufacturer if the new 15 motor vehicles of the customers are located in remote locations and need repairs.
14 (c) A manufacturer may direct a new motor vehicle dealer of the manufacturer 15 to refer customers of the new motor vehicle dealer to the manufacturer if the new 16 motor vehicles of the customers are located in remote locations and need repairs.
16 (d) This section does not prohibit a manufacturer from allowing a new motor 17 vehicle dealer to subcontract warranty work for a specific new motor vehicle that is 18 located in a remote location.
17 (d) This section does not prohibit a manufacturer from allowing a new motor 18 vehicle dealer to subcontract warranty work for a specific new motor vehicle that is 19 located in a remote location.
If the manufacturer allows the new motor vehicle dealer 19 to subcontract the warranty work, the manufacturer shall compensate the new motor 20 vehicle dealer for the subcontracted warranty work paid for by the new motor vehicle 21 dealer.
If the manufacturer allows the new motor vehicle dealer 20 to subcontract the warranty work, the manufacturer shall compensate the new motor 21 vehicle dealer for the subcontracted warranty work paid for by the new motor vehicle 22 dealer.
22 (e) In this section, "remote location" means a location that is not accessible by 23 road or that is more than 100 road miles from a new motor vehicle dealer that is 24 authorized to perform warranty work on new motor vehicles.
23 (e) In this section, "remote location" means a location that is not accessible by 24 road or that is more than 100 road miles from a new motor vehicle dealer that is 25 authorized to perform warranty work on new motor vehicles.
25 Sec.
26 Sec.
A manufacturer 26 and a distributor shall provide in writing the following information to their new motor 27 vehicle dealers about new motor vehicles and other products received from the 28 manufacturer or distributor:
A manufacturer 27 and a distributor shall provide in writing the following information to their new motor 28 vehicle dealers about new motor vehicles and other products received from the 29 manufacturer or distributor:
29 (1) the specific obligations of the new motor vehicle dealer to prepare 30 and service new motor vehicles and products before delivery of the new motor 31 vehicles and products to buyers;
30 (1) the specific obligations of the new motor vehicle dealer to prepare 31 and service new motor vehicles and products before delivery of the new motor vehicles and products to buyers;
(2) the compensation that the manufacturer or distributor will pay the 02 dealer for performing the preparation and service obligations described in (1) of this 03 section;
02 (2) the compensation that the manufacturer or distributor will pay the 03 dealer for performing the preparation and service obligations described in (1) of this 04 section;
and 04 (3) the amount of time that the manufacturer or distributor will allow 05 the new motor vehicle dealer for performing the preparation and service obligations 06 described in (1) of this section.
and 05 (3) the amount of time that the manufacturer or distributor will allow 06 the new motor vehicle dealer for performing the preparation and service obligations 07 described in (1) of this section.
07 * Sec.
08 * Sec.
08 Sec.
09 Sec.
A manufacturer may not 09 (1) require, coerce, or attempt to coerce a new motor vehicle dealer to 10 change the location of the new motor vehicle dealership or to make any substantial 11 alterations to the new motor vehicle dealership premises or facilities if the alterations 12 would be unreasonable or if there is not expected to be a sufficient supply of new 13 motor vehicles to justify the change of location or the alterations because of market 14 and economic conditions;
A manufacturer may not 10 (1) require, coerce, or attempt to coerce a new motor vehicle dealer to 11 change the location of the new motor vehicle dealership or to make any substantial 12 alterations to the new motor vehicle dealership premises or facilities if the alterations 13 would be unreasonable or if there is not expected to be a sufficient supply of new 14 motor vehicles to justify the change of location or the alterations because of market 15 and economic conditions;
this paragraph does not apply to alterations that are 15 necessary to comply with health or safety laws;
this paragraph does not apply to alterations that are 16 necessary to comply with health or safety laws;
in this paragraph, "substantial 16 alterations" does not include erecting signs subject to the manufacturer's intellectual 17 property rights, doing interior painting that is necessary to keep a new motor vehicle 18 dealer facility in an attractive condition, or performing routine maintenance;
in this paragraph, "substantial 17 alterations" does not include erecting signs subject to the manufacturer's intellectual 18 property rights, doing interior painting that is necessary to keep a new motor vehicle 19 dealer facility in an attractive condition, or performing routine maintenance;
19 (2) require a new motor vehicle dealer to purchase or include in 20 inventory a predetermined number or percentage of certified pre-owned motor 21 vehicles or lease return motor vehicles;
20 (2) require a new motor vehicle dealer to purchase or include in 21 inventory a predetermined number or percentage of certified pre-owned motor 22 vehicles or lease return motor vehicles;
22 (3) except because of reasons beyond the manufacturer's control, 23 refuse or fail to deliver or offer for sale in reasonable quantities to a new motor vehicle 24 dealer holding a franchise for a line make of new motor vehicles sold or distributed by 25 the manufacturer a new motor vehicle, part, or accessory, if the new motor vehicle, 26 part, or accessory is being delivered to other new motor vehicle dealers;
23 (3) except because of reasons beyond the manufacturer's control, 24 refuse or fail to deliver or offer for sale in reasonable quantities to a new motor vehicle 25 dealer holding a franchise for a line make of new motor vehicles sold or distributed by 26 the manufacturer a new motor vehicle, part, or accessory, if the new motor vehicle, 27 part, or accessory is being delivered to other new motor vehicle dealers;
this paragraph 27 does not apply to limited edition or limited release vehicle parts or accessories;
this paragraph 28 does not apply to limited edition or limited release vehicle parts or accessories;
28 (4) require a new motor vehicle dealer to purchase unreasonable 29 advertising displays or other materials or an unreasonable number of signs;
29 (4) require a new motor vehicle dealer to purchase unreasonable 30 advertising displays or other materials or an unreasonable number of signs;
30 (5) require a new motor vehicle dealer to order or accept delivery of a 31 new motor vehicle, part, accessory, piece of equipment, promotional material, display device, display decoration, or other item that is not otherwise required by law and that 02 the new motor vehicle dealer does not voluntarily order;
31 (5) require a new motor vehicle dealer to order or accept delivery of a new motor vehicle, part, accessory, piece of equipment, promotional material, display 02 device, display decoration, or other item that is not otherwise required by law and that 03 the new motor vehicle dealer does not voluntarily order;
this paragraph does not apply 03 to safety and emissions recall campaign parts or to a motor vehicle feature, part, 04 accessory, or other component required by federal law, the law of this state, or local 05 law;
this paragraph does not apply 04 to safety and emissions recall campaign parts or to a motor vehicle feature, part, 05 accessory, or other component required by federal law, the law of this state, or local 06 law;
06 (6) coerce, attempt to coerce, or require a new motor vehicle dealer to 07 (A) join, contribute money to, or affiliate with an advertising 08 association;
07 (6) coerce, attempt to coerce, or require a new motor vehicle dealer to 08 (A) join, contribute money to, or affiliate with an advertising 09 association;
or 09 (B) participate monetarily in an advertising campaign;
or 10 (B) participate monetarily in an advertising campaign;
or 10 (7) increase the price of a new motor vehicle that the new motor 11 vehicle dealer has ordered from the manufacturer and for which there exists at the time 12 of the order a bona fide sale to a retail or fleet purchaser if the dealer submitted the 13 order to the manufacturer before the manufacturer provided the new motor vehicle 14 dealer with an official written price increase notification.
or 11 (7) increase the price of a new motor vehicle that the new motor 12 vehicle dealer has ordered from the manufacturer and for which there exists at the time 13 of the order a bona fide sale to a retail or fleet purchaser if the dealer submitted the 14 order to the manufacturer before the manufacturer provided the new motor vehicle 15 dealer with an official written price increase notification.
15 * Sec.
16 * Sec.
16 (19) "terminate" includes 17 (A) canceling or not renewing;
17 (19) "terminate" includes 18 (A) canceling or not renewing;
18 (B) a manufacturer discontinuing the sale and distribution of a 19 new motor vehicle line make covered by a franchise;
19 (B) a manufacturer discontinuing the sale and distribution of a 20 new motor vehicle line make covered by a franchise;
20 * Sec.
21 * Sec.
21 (22) "schedule of compensation" means a schedule of compensation 22 established under AS 45.25.210;
22 (22) "schedule of compensation" means a schedule of compensation 23 established under AS 45.25.210;
23 (23) "warranty work" 24 (A) means repairs that are covered under a manufacturer's 25 warranty or a recall;
24 (23) "warranty work" 25 (A) means repairs that are covered under a manufacturer's 26 warranty or a recall;
26 (B) means work that the manufacturer in good will directs be 27 performed and reimbursed by the manufacturer but that is not covered by the 28 manufacturer's warranty or a recall;
27 (B) means work that the manufacturer in good will directs be 28 performed and reimbursed by the manufacturer but that is not covered by the 29 manufacturer's warranty or a recall;
29 (C) does not mean work under a separate service contract.
30 (C) does not mean work under a separate service contract.
30 * Sec.
31 * Sec.
View plain text versions (3)

Action History

  1. EFFECTIVE DATE(S) OF LAW 9/30/18

  2. Signed into law 7/2 CHAPTER 50 SLA 18

  3. 1:00 PM 6/25/18 Transmitted to Governor

  4. MANIFEST ERROR(S)

  5. VERSION: CSHB 136(TRA)

  6. RETURN TO (H), TRANSMIT TO GOV NEXT

  7. PASSED Y19 N- A1

  8. BISHOP, MICCICHE, VON IMHOF, KELLY

  9. CROSS SPONSOR(S): MEYER, WILSON, COGHILL, EGAN, GARDNER, MACKINNON, GIESSEL

  10. Read the third time CSHB 136(TRA)

  11. ADVANCED TO THIRD READING UC

  12. Read the second time

  13. RULES TO CALENDAR 4/14/2018

  14. Fiscal Note 2: No fiscal impact (Law)

  15. STA Do Pass: MEYER, WILSON, GIESSEL, COGHILL, EGAN

  16. STA RPT 5DP

  17. STA WAIVED PUBLIC HEARING NOTICE,RULE 23

  18. STA WAIVED PUBLIC HEARING NOTICE,RULE 23

  19. Referred to State Affairs

  20. Read the first time - REFERRALS

  21. VERSION: CSHB 136(TRA)

  22. TRANSMITTED TO (S)

  23. JOSEPHSON, WOOL

  24. Cosponsors added: SULLIVAN-LEONARD, BIRCH, KOPP, KITO, TUCK, STUTES, KAWASAKI,

  25. PASSED ON RECONSIDERATION Y36 N3 E1

  26. RECON TAKEN UP SAME DAY UC

  27. CLAMAN NOTICE OF RECONSIDERATION

  28. PASSED Y36 N3 E1

  29. Read the third time CSHB 136(TRA)

  30. ADVANCED TO THIRD READING UC

  31. TRA CS ADOPTED UC

  32. Read the second time

  33. RULES TO CALENDAR 4/9/2018

  34. Fiscal Note 2: No fiscal impact (Law)

  35. L&C Do Pass: SULLIVAN-LEONARD, STUTES, JOSEPHSON, KNOPP, KITO

  36. L&C RPT CS(TRA) NT 5DP

  37. Cosponsors added: MILLETT

  38. FN1: ZERO(H.TRA/LAW)

  39. TRA Do Pass: SULLIVAN-LEONARD, DRUMMOND, CLAMAN, KOPP, WOOL

  40. TRA RPT CS(TRA) NT 5DP

  41. TRA, L&C

  42. Read the first time - REFERRALS

Sponsors

  • CLAMAN · Primary
  • Andy Josephson · Cosponsor
  • Scott Kawasaki · Cosponsor
  • Kito · Cosponsor
  • Chuck Kopp · Cosponsor
  • Millett · Cosponsor
  • Reinbold · Cosponsor
  • Louise Stutes · Cosponsor
  • Sullivan-Leonard · Cosponsor
  • Tuck · Cosponsor
  • Wool · Cosponsor
  • Birch · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 11 co-sponsors · 53 not signed on · 1 voted No

Sponsors (1)

  • CLAMAN

Co-sponsors (11)

Not signed on (53)

53 members have not signed on to this bill.

Show all 53 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Passed 19 Yea · 0 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 13000
R 3001
D 3000
Total 19001
% of votes cast 95%0%0%5%
How each member voted (20)
Member Party Vote
Begich — Yea
Bishop — Yea
Coghill — Yea
Egan — Yea
Gardner — Yea
Hughes — Yea
Kelly — Yea
MacKinnon — Yea
Meyer — Yea
Micciche — Yea
Shower — Yea
Wilson — Yea
von Imhof — Yea
Bill Wielechowski D Yea
Donald Olson D Yea
Lyman Hoffman D Yea
Bert Stedman R Not Voting
Cathy Giessel R Yea
Gary Stevens R Yea
Mia Costello R Yea

Official roll call →

Passed 36 Yea · 3 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 26201
D 4000
N 1000
R 5100
Total 36301
% of votes cast 90%8%0%3%
How each member voted (40)
Member Party Vote
Birch — Yea
Chenault — Yea
Drummond — Yea
Eastman — Nay
Gara — Yea
Grenn — Yea
Guttenberg — Yea
Johnston — Yea
Kito — Yea
Knopp — Not Voting
Kreiss-Tomkins — Yea
LeDoux — Yea
Lincoln — Yea
Millett — Yea
Neuman — Yea
Ortiz — Yea
Parish — Yea
Pruitt — Yea
Reinbold — Yea
Seaton — Yea
Spohnholz — Yea
Sullivan-Leonard — Yea
Talerico — Yea
Tarr — Yea
Thompson — Yea
Tuck — Yea
Wool — Yea
Zulkosky — Yea
Wilson — Nay
Andy Josephson D Yea
Matt Claman D Yea
Neal Foster D Yea
Scott Kawasaki D Yea
Bryce Edgmon N Yea
Cathy Tilton R Yea
Chuck Kopp R Yea
Dan Saddler R Yea
DeLena Johnson R Yea
George Rauscher R Nay
Louise Stutes R Yea

Official roll call →

Subjects

Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors HB 136?
HB 136 is sponsored by CLAMAN, Andy Josephson (D), Scott Kawasaki (D), Kito, Chuck Kopp (R), Millett, Reinbold, Louise Stutes (R), Sullivan-Leonard, Tuck, Wool, and Birch.
What is the current status of HB 136?
This bill has been enacted into law. Introduced February 20, 2017. Enacted.
Where can I track HB 136?
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