ANCHORAGE – Today, Gov. Mike Dunleavy signed legislation sponsored by Rep. Matt Claman (D-Anchorage) that strengthens Alaska’s requirements for the licensing of motor vehicle dealers.
House Bill 36 modernizes the statute and incorporates reasonable standards for obtaining a motor vehicle dealer’s license without creating barriers to entry into the field or restricting competition.
The bill updates the surety bond requirement – which had not been changed in 20 years – to $100,000 to stay in line with the current economics of the automobile industry.
HB 36 also makes three other important changes: 1) requiring that dealers carry comprehensive liability insurance, 2) limiting ownership by people who have been convicted of felonies related to fraud or embezzlement within five years of the application date, and 3) requiring dealers with employees to confirm they are aware of Alaska’s workers’ compensation coverage requirements.
Representative Claman said, “Purchasing a car may be one of the largest investments a consumer makes in their lifetime, so we need to ensure that reasonable standards for becoming a dealer are in place as well as financial protections should the sale not work out.”
