SCS CSHB 177(L&C): "An Act relating to marine products and motorized recreational products; amending Rule 3, Alaska Rules of Civil Procedure; and providing for an effective date."

00 SENATE CS FOR CS FOR HOUSE BILL NO. 177(L&C) 01 "An Act relating to marine products and motorized recreational products; amending 02 Rule 3, Alaska Rules of Civil Procedure; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 45.25.990(12) is amended to read: 05 (12) "motor vehicle" means a motor vehicle that is required to be 06 registered under AS 28.10, but does not include a motor home, a recreational vehicle, 07 or a motorcycle; in this paragraph, 08 (A) "all-terrain vehicle" has the meaning given in 09 AS 45.27.390; 10 (B) "recreational vehicle" includes an all-terrain vehicle 11 and a snow machine; 12 (C) "snow machine" has the meaning given in 13 AS 45.27.390; 14 * Sec. 2. AS 45 is amended by adding a new chapter to read:

01 Chapter 27. Marine Products and Motorized Recreational Products. 02 Article 1. Agreement Practices of Product Manufacturers. 03 Sec. 45.27.010. Consent to transfer of agreement. A manufacturer may not 04 unreasonably withhold consent to the sale or other transfer of a dealership agreement 05 by an authorized dealer to a transferee if the transferee 06 (1) meets the criteria generally applied by the manufacturer when 07 approving new authorized dealers; and 08 (2) agrees to be bound by all the terms and conditions of the standard 09 form of the dealership agreement. 10 Sec. 45.27.020. Cancellation or nonrenewal of agreement. (a) A 11 manufacturer may not cancel or decline to renew a dealership agreement with an 12 authorized dealer unless 13 (1) the manufacturer has 14 (A) satisfied the notice requirements of this chapter; and 15 (B) shown that there is good cause for the cancellation or 16 nonrenewal of the dealership agreement, and, if the reasons underlying the 17 good cause can be corrected by the authorized dealer, the authorized dealer has 18 failed for 60 days after delivery of the notice required by AS 45.27.030 to 19 make the corrections; the circumstances identified under AS 45.27.030(a)(2), 20 for which a 15-day notice of cancellation or nonrenewal is required, do not 21 qualify as reasons for which correction is allowed under this paragraph; or 22 (2) the authorized dealer has engaged in fraud 23 (A) against consumers or the manufacturer; or 24 (B) in the operation of the authorized dealer's dealership. 25 (b) Under (a)(1)(B) of this section, an authorized dealer may not prevent a 26 cancellation or nonrenewal of a dealership agreement more than two times by making 27 corrections. 28 (c) Notwithstanding (a)(1) of this section, a manufacturer may not cancel or 29 decline to renew a dealership agreement with an authorized dealer because of the 30 death or incapacity of an owner if the owner is not listed in the agreement as one on 31 whose expertise and abilities the manufacturer relied in the granting of the agreement.

01 (d) In this section, "good cause" includes circumstances in which the 02 authorized dealer fails to comply with or observe a material provision of the dealership 03 agreement with the authorized dealer. For the purpose of determining good cause 04 under this subsection, reasonable sales and service performance criteria and capital 05 and facility requirements may be considered material provisions only if the criteria or 06 requirements were communicated in writing to the authorized dealer within a 07 reasonable period of not less than six months before the effective date of the 08 cancellation or nonrenewal, to afford the authorized dealer a reasonable opportunity to 09 comply with the criteria or requirements. 10 Sec. 45.27.030. Notice of cancellation or nonrenewal. (a) A manufacturer 11 shall furnish a notice of cancellation or nonrenewal of a dealership agreement with an 12 authorized dealer to an authorized dealer at least 13 (1) 90 days before the effective date of a cancellation or nonrenewal, 14 except as provided under (2) of this subsection; 15 (2) 15 days before the effective date of a cancellation or nonrenewal 16 when the authorized dealer 17 (A) is insolvent or is the subject of a bankruptcy or receivership 18 proceeding; 19 (B) is convicted of a felony involving moral turpitude or fraud 20 under the law of this state, another state, the federal government, a territory of 21 the United States, or the District of Columbia; 22 (C) has violated a term of the dealership agreement with the 23 manufacturer, the violation of which the manufacturer and the authorized 24 dealer have agreed in the dealership agreement constitutes a basis for 25 cancellation or nonrenewal. 26 (b) Notice required under (a) of this section must be in writing, shall be sent 27 by certified mail or personally delivered to the authorized dealer, and must contain 28 (1) a statement of intention to cancel or not renew the dealership 29 agreement; 30 (2) a statement of the reasons for the cancellation or nonrenewal; and 31 (3) the date on which the cancellation or nonrenewal takes effect.

01 (c) In this section, "mail" means registered or certified mail, return receipt 02 requested. 03 Sec. 45.27.040. Threat of cancellation or nonrenewal. (a) A manufacturer or 04 manufacturer's representative may not coerce or attempt to coerce an authorized dealer 05 to enter into a dealership agreement with the manufacturer or a subsidiary of the 06 manufacturer, or to perform any other act unfair to the authorized dealer, by 07 threatening to terminate a dealership agreement between the manufacturer or 08 subsidiary of the manufacturer and the authorized dealer. 09 (b) This section does not prohibit a voluntary agreement between a 10 manufacturer and an authorized dealer to settle legitimate disputes. 11 (c) In this section, "manufacturer's representative" means an employee or 12 agent of a manufacturer who engages in the business of contacting a manufacturer's 13 authorized dealer for the purpose of making or promoting the sale of the 14 manufacturer's products or product parts. 15 Sec. 45.27.050. Repurchase obligations on cancellation or nonrenewal. (a) 16 On the cancellation or nonrenewal of a dealership agreement by a manufacturer 17 without satisfying the requirements under AS 45.27.020, the manufacturer shall 18 repurchase from the authorized dealer's inventory 19 (1) each new and unused product of the manufacturer that is a current 20 product model, or the product model from the previous year; and 21 (2) each product part that 22 (A) was purchased from the manufacturer by the authorized 23 dealer; 24 (B) is listed in the manufacturer's parts price books in the 25 previous two years; and 26 (C) has not been damaged or substantially altered to the 27 prejudice of the manufacturer while in the possession of the authorized dealer. 28 (b) Within 90 days after the effective date of the cancellation or nonrenewal, 29 the authorized dealer shall return the property required by (a) of this section to be 30 repurchased to the manufacturer at the manufacturer's expense. The manufacturer shall 31 pay the compensation for the property within 60 days after the tender of inventory and

01 other items if the authorized dealer has clear title to the property and is in a position to 02 convey that title to the manufacturer. If the property is subject to a security interest, 03 the manufacturer may make the payments jointly to the authorized dealer and the 04 holder of the security interest, and the manufacturer may offset the payment. 05 (c) The amount of a repurchase required by (a) of this section must be based 06 on the authorized dealer's landed cost, subject to adjustments to landed costs for 07 quarterly or annual purchase rebates and credits given to the authorized dealer on the 08 products or product parts. 09 Article 2. Product Warranties. 10 Sec. 45.27.100. Warranty provided. A manufacturer shall provide, through 11 the authorized dealer, to the product's ultimate purchaser from an authorized dealer the 12 manufacturer's standard warranty, if any, that is in effect at the time of delivery of the 13 product to the authorized dealer. 14 Sec. 45.27.110. Nonconforming products. (a) A manufacturer of a 15 nonconforming product shall, during the original warranty period, pay an authorized 16 dealer to complete factory-recommended warranty repairs, solutions, and procedures 17 to cure factory warranty problems with a nonconforming product. The manufacturer 18 shall make the payment in accordance with the standard warranty service claim 19 procedures and methods of the industry and with AS 45.27.100 - 45.27.220. 20 (b) If a part that is necessary to repair a nonconforming product of a 21 nonconformity that is covered under a manufacturer's warranty is not in an authorized 22 dealer's inventory when the nonconforming product is brought to the authorized dealer 23 for repair, the manufacturer of the product shall provide the authorized dealer with the 24 part. The manufacturer shall provide the part as soon as possible and may not charge 25 for freight or handling. This subsection applies to a manufacturer whose products are 26 sold in the state through an authorized dealer. 27 (c) The manufacturer of a nonconforming product shall pay the cost for 28 transporting a replacement for the nonconforming product from the manufacturer to 29 the authorized dealer who sold the nonconforming product to the ultimate purchaser or 30 the authorized dealer who is located nearest to the ultimate purchaser, whichever of 31 the two authorized dealers the ultimate consumer chooses. The manufacturer is not

01 required to pay the transportation cost from the authorized dealer to the ultimate 02 purchaser or from the ultimate purchaser to the authorized dealer. 03 (d) In this section, "nonconforming product" means a product that has a 04 nonconformity. 05 Sec. 45.27.120. Authorized dealer warranty representations. An authorized 06 dealer may not make a representation about the warranty that is not made by the 07 manufacturer in the warranty. An authorized dealer shall deliver the manuals on the 08 operation and maintenance of a product to an ultimate purchaser and make the 09 manufacturer's warranty known to the ultimate purchaser, including all disclaimers 10 and limitations. 11 Sec. 45.27.130. Warranty service and claims. (a) An authorized dealer shall 12 provide warranty service in accordance with the manufacturer's applicable warranty on 13 all of the manufacturer's products sold by the authorized dealer. 14 (b) An authorized dealer shall make all claims for warranty reimbursement in 15 the manner established by the manufacturer. 16 Sec. 45.27.140. Warranty restrictions. A manufacturer may not, by 17 dealership agreement, by restrictions on reimbursement, or by another method, restrict 18 the nature or extent of product parts provided or labor performed by an authorized 19 dealer if the restriction impairs the authorized dealer's ability to satisfy a warranty 20 created by the manufacturer in accordance with generally accepted standards. 21 Sec. 45.27.150. Basis for reimbursements. (a) A manufacturer shall use the 22 criteria established in this section to reimburse an authorized dealer for all approved 23 warranty service work performed by the authorized dealer. 24 (b) If the technician performing the warranty service work meets the 25 certification standards in the dealership agreement, a manufacturer shall pay to a 26 servicing authorized dealer warranty work labor rates that 27 (1) are not less than the highest of the following: 28 (A) the rate the authorized dealer customarily charges to a 29 customer for nonwarranty service work; 30 (B) the manufacturer's printed flat rate; or 31 (C) the rate established by a flat rate manual for dealers, if the

01 manual is produced for dealers by a nationally respected industry consultant; 02 and 03 (2) include time for clean-up, preparation, diagnosis, disassembly, 04 repair, assembly, testing, and final cleaning as needed to provide a quality result and 05 customer satisfaction. 06 (c) In addition to the payment under (b) of this section, the manufacturer shall 07 reimburse an authorized dealer a minimum of one hour at the authorized dealer's shop 08 standard labor rate for the administration of each warranty claim. 09 (d) A manufacturer shall reimburse the authorized dealer for product parts in 10 the authorized dealer's inventory at the current manufacturer's full suggested retail 11 price. 12 Sec. 45.27.160. Timely reimbursement for claims. A manufacturer shall pay 13 a properly submitted warranty claim of an authorized dealer within 30 days after 14 receiving the claim from an authorized dealer. Unless a manufacturer issues a written 15 notice of disapproval under AS 45.27.170 within the 30 days, if a manufacturer fails to 16 pay a claim within 30 days after receipt, the failure is considered an acceptance of the 17 claim as submitted, and the manufacturer shall pay the authorized dealer interest at the 18 rate of 1.5 percent a month on the claim. 19 Sec. 45.27.170. Warranty claim disapproval. If a manufacturer does not 20 approve a claim submitted under AS 45.27.160, the manufacturer shall issue a written 21 notice of disapproval to the authorized dealer within 30 days after the manufacturer 22 receives the claim. The notice must contain the specific reasons for the disapproval. 23 Sec. 45.27.180. Repairs required. If a product does not conform to a warranty 24 that is applicable to it and the ultimate purchaser of the product reports the 25 nonconformity to the manufacturer of the product or to the manufacturer's authorized 26 dealer during the term of the warranty, the manufacturer or authorized dealer shall 27 make the necessary repairs to conform the product to the warranty. 28 Sec. 45.27.190. Replacement or refund. (a) If, during the term of a warranty 29 or within one year after the date of the delivery of the product to the ultimate 30 purchaser, whichever period of time terminates first, the manufacturer or authorized 31 dealer is unable to conform a product to an applicable warranty after a reasonable

01 number of attempts, the manufacturer shall accept the return of the nonconforming 02 product, and, at the ultimate purchaser's option, shall replace the nonconforming 03 product with a new comparable product or refund the full purchase price to the owner 04 after deducting a reasonable amount of money for the ultimate purchaser's use of the 05 product from the date the product was delivered to the ultimate purchaser. 06 (b) The reasonable amount of money deducted under (a) of this section may 07 not exceed an amount that is equal to the sum of 08 (1) the amount of money that reflects the depreciation in value of the 09 product for the period during which the product was available for use by the ultimate 10 purchaser, as calculated by a straight line depreciation method over seven years; and 11 (2) an amount of money that is equal to the depreciation in value of the 12 product that was caused by 13 (A) neglect or abuse by the ultimate purchaser; or 14 (B) body damage that was not caused by the nonconformity. 15 (c) The manufacturer shall make the refund required by this section 16 (1) to the lienholder of record for the product, if any, to the extent of 17 the lienholder's interest, and, if there is a balance after satisfying the lienholder's 18 interest, to the ultimate purchaser; or 19 (2) entirely to the ultimate purchaser, if there is no lienholder of record 20 for the product. 21 (d) In this section, 22 (1) "costs" include original registration fees, transportation fees, 23 authorized dealer's preparation fees, and the cost of options installed by the authorized 24 dealer; 25 (2) "full purchase price" means the total price paid for a product by the 26 ultimate purchaser, including any costs added to the retail price. 27 Sec. 45.27.200. Notice by ultimate purchaser. (a) To claim a refund or 28 replacement under AS 45.27.190, an ultimate purchaser shall give written notice by 29 certified mail to the manufacturer and its authorized dealer before 60 days have 30 elapsed after the termination of whichever of the following periods of time terminates 31 first:

01 (1) the term of the warranty; or 02 (2) one year after the date of delivery of the product to the ultimate 03 purchaser. 04 (b) The notice required by (a) of this section must 05 (1) state that the product has a nonconformity; 06 (2) provide a reasonable description of the nonconformity; 07 (3) state that the manufacturer or authorized dealer has made a 08 reasonable number of attempts to conform the product to the warranty; and 09 (4) state that the owner demands that a refund or a replacement of the 10 product be delivered on or before the 60th day after the mailing date of the written 11 notice. 12 (c) Within 30 days after receiving the notice required by this section, the 13 manufacturer may make a final attempt to conform the product before the 14 manufacturer is required to make a refund or replacement under AS 45.27.190. 15 Sec. 45.27.210. Exceptions. An ultimate purchaser may not receive a refund 16 for or replacement of a product under AS 45.27.190 - 45.27.220 if the manufacturer 17 shows that the problem or condition because of which the ultimate purchaser is 18 claiming a refund or a replacement 19 (1) is not a nonconformity; or 20 (2) is a nonconformity that resulted from 21 (A) alteration of the product by the ultimate purchaser, or by a 22 person who is not the authorized dealer or otherwise authorized by the 23 manufacturer or distributor to make the alteration; or 24 (B) abuse or neglect by the ultimate purchaser or another 25 person other than the authorized dealer. 26 Sec. 45.27.220. Presumption. A rebuttable presumption that a reasonable 27 number of attempts have been made to conform a product to an applicable warranty is 28 established if 29 (1) the nonconformity continues to exist even though the same 30 nonconformity has been subject to repair three or more times by the manufacturer or 31 authorized dealer during the term of the warranty or the one-year period after the date

01 of delivery of the product to the ultimate purchaser, whichever period of time 02 terminates first; or 03 (2) the product is out of service for repair for a total of 30 or more days 04 on which the authorized dealer is open for business during the term of the warranty or 05 during the one-year period after the date of delivery of the product to the ultimate 06 purchaser, whichever period of time terminates first; a period of time during which 07 repairs are not performed for reasons that are beyond the control of the manufacturer 08 or authorized dealer is not included in satisfying the 30-day time period. 09 Article 3. Miscellaneous Business Practices. 10 Sec. 45.27.250. Required posting. (a) An authorized dealer shall post a notice 11 of the authorized dealer's retail labor rate in a place conspicuous to service customers. 12 If the authorized dealer uses a factory-certified or factory-trained technician to 13 perform warranty service work, the notice must also contain a statement that warranty 14 service work completed by the authorized dealer is performed by a factory-certified or 15 factory-trained technician. 16 (b) If an authorized dealer's service operations employees receive a 17 commission for the amount of work they perform, the authorized dealer shall post a 18 conspicuous sign that is visible to service customers that the authorized dealer's 19 service operations employees work on commission. 20 Sec. 45.27.260. Written estimates for repairs not covered by warranty. (a) 21 Before beginning repair work on a product for a customer, an authorized dealer shall 22 provide to the customer a written estimate listing the specific parts, labor, and cost of 23 the repairs. 24 (b) If additional repairs are determined to be necessary after the service 25 employees begin repairing the product, the authorized dealer shall contact the 26 customer and receive permission to do additional repairs not covered in the written 27 estimate. 28 (c) An authorized dealer shall post in a conspicuous place for service 29 customers to view all charges for diagnostics, storage, and other incidentals not 30 associated with the actual repair of a product. 31 Sec. 45.27.270. Content of factory recall notices. A manufacturer shall

01 include in a written factory recall notice to ultimate purchasers and authorized dealers 02 the date by which the manufacturer expects that necessary parts and equipment will be 03 available to the authorized dealer for the correction of the defect that is the subject of 04 the recall. 05 Sec. 45.27.280. Resale without disclosure prohibited. A manufacturer may 06 not resell in the state a product returned under AS 45.27.190 unless the manufacturer 07 fully discloses to the prospective buyer before the resale is concluded the reason why 08 the product was returned. 09 Article 4. Miscellaneous Provisions. 10 Sec. 45.27.300. Other rights and remedies. The provisions of this chapter do 11 not limit other rights and remedies that may be available to the owner of a product 12 under other provisions of law. This section does not create a new cause of action 13 against an authorized dealer who sells or attempts to repair a product found to be 14 nonconforming. 15 Sec. 45.27.310. Applicability. The provisions of this chapter apply to a 16 dealership agreement if the dealership agreement is between a manufacturer and an 17 authorized dealer in this state. 18 Sec. 45.27.320. Jurisdiction; venue. (a) This state has jurisdiction over a legal 19 dispute between a manufacturer located in or outside this state and an authorized 20 dealer located in this state, and the dispute is governed by, interpreted, and adjudicated 21 under the law of this state. 22 (b) Venue for court action involving a dispute under (a) of this section is in the 23 judicial district of this state in which the authorized dealer's principal place of business 24 is located. 25 Sec. 45.27.330. Corporate affiliates. (a) A manufacturer may not use a 26 subsidiary corporation, affiliated corporation, partnership, association, or other person 27 to do what the manufacturer is prohibited from doing under this chapter. 28 (b) The provisions of (a) of this section do not limit the right of a person to 29 engage in reasonable and appropriate business practices consistent with an existing 30 trade practice that is not prohibited by this chapter. 31 Sec. 45.27.340. Unenforceable provisions. If a provision in a dealership

01 agreement violates this chapter, the provision is not enforceable. 02 Article 5. General Provisions. 03 Sec. 45.27.390. Definitions. In this chapter, unless the context indicates 04 otherwise, 05 (1) "authorized dealer" means a person who has entered into a 06 dealership agreement with a manufacturer; 07 (2) "boat" means a marine product that is not equipped with a motor; 08 (3) "dealership agreement" means an agreement between a person and 09 a manufacturer of products for the person to engage in the retail sale and warranty 10 repair of the manufacturer's products in the state; 11 (4) "distributor" means a person who is authorized by a manufacturer 12 to engage in the wholesale distribution of the manufacturer's products in the state; 13 (5) "landed cost" means the sum of the price of the product and the 14 transportation cost to the authorized dealer's facility; 15 (6) "manufacturer" means a person who 16 (A) fabricates, manufactures, or assembles products; 17 "manufacturer" includes a manufacturer branch and a manufacturer sales 18 representative, but does not include a person who converts, modifies, or 19 otherwise alters a product fabricated, manufactured, or assembled by another 20 person; or 21 (B) is a distribution entity that is 22 (i) owned or controlled by a person described under (A) 23 of this paragraph; and 24 (ii) separate from a person described under (A) of this 25 paragraph; 26 (7) "marine product" means a new watercraft, boat, or a gasoline motor 27 designed for recreational or commercial use on water; "marine product" includes an 28 outboard gasoline motor or boat with an attached gasoline motor, but does not include 29 a watercraft designed or adapted to be powered only by an occupant's energy; 30 (8) "motorized recreational product" means an all-terrain vehicle, a 31 marine gasoline motor, a boat, a boat package, a marine product, and a snow machine;

01 in this paragraph, 02 (A) "all-terrain vehicle" means a vehicle with three or more 03 low-pressure, flotation-type tires, as designed by the manufacturer or altered, 04 to be used as an off-road recreational vehicle; 05 (B) "boat package" means a boat that is equipped and sold with 06 a gasoline motor or another form of gasoline motorized propulsion; 07 (C) "snow machine" means a motorized vehicle with a gross 08 vehicle weight under 1,300 pounds propelled by a track system designed to 09 move a person over snow or ice, and includes a snowmobile; 10 (9) "nonconformity" means a defect or condition in a product that is 11 caused by a manufacturer, distributor, or authorized dealer and that 12 (A) substantially decreases the dollar value of a product to the 13 owner when compared to the dollar value of a similar product that does not 14 have the defect or condition; or 15 (B) prevents a product from being operated or used or makes 16 the product unsafe; 17 (10) "part" includes an accessory; 18 (11) "product" means a marine product or a motorized recreational 19 product; 20 (12) "ultimate purchaser" means 21 (A) a purchaser, other than for resale, of a new product, if the 22 new product is not subject to AS 28.10 or AS 28.39; or 23 (B) a person to whom ownership of a new product is 24 transferred under AS 28.10 or AS 28.39; 25 (13) "warranty" means a written warranty provided by the 26 manufacturer of a product. 27 Sec. 45.27.395. Short title. This chapter may be cited as the Alaska Marine 28 Product and Motorized Recreational Product Act. 29 * Sec. 3. AS 45.45.770(a) is amended to read: 30 (a) AS 45.45.700 - 45.45.790 do not apply to 31 (1) a distributorship agreement that would be considered a franchise

01 regulated by 15 U.S.C. 2801 - 2841 (Petroleum Marketing Practices Act); 02 (2) a situation regulated by AS 45.50.800 - 45.50.850; 03 (3) a distributorship agreement, including a franchise agreement, for 04 the sale, repair, or servicing of motor vehicles that are required to be registered under 05 AS 28.10; 06 (4) an activity or agreement by a person licensed under AS 04 if the 07 activity or agreement is within the scope of the license or is incidental to the activity 08 or agreement that is within the scope of the license; 09 (5) a distributorship agreement or another contract between a person 10 licensed under AS 04 and a distributor, manufacturer, importer, supplier, or wholesaler 11 of alcoholic beverages who is not located in this state if the subject of the agreement 12 or contract is the distribution of alcoholic beverages to the licensed person by the 13 distributor, manufacturer, importer, supplier, or wholesaler; 14 (6) a distributor, manufacturer, importer, supplier, or wholesaler of 15 alcoholic beverages; 16 (7) a distributorship agreement for the sale or distribution of, or other 17 transaction involving, cigarettes, food, drink, or a component of food or drink; in this 18 paragraph, "cigarette" has the meaning given in AS 43.50.170; [OR] 19 (8) a manufacturer with 50 or fewer employees; or 20 (9) a marine product or motorized recreational product agreement 21 under AS 45.27. 22 * Sec. 4. AS 45.50.471(b) is amended by adding a new paragraph to read: 23 (56) violating AS 45.27 (marine products and motorized recreational 24 products). 25 * Sec. 5. The uncodified law of the State of Alaska is amended by adding a new section to 26 read: 27 INDIRECT COURT RULE AMENDMENT. The provisions of AS 45.27.320, 28 enacted by sec. 2 of this Act, have the effect of amending Rule 3, Alaska Rules of Civil 29 Procedure, by establishing a specific venue rule that is different from the venue rules in Rule 30 3 for a dispute between a manufacturer and an authorized dealer. 31 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to

01 read: 02 APPLICABILITY. This Act does not apply to a dealership agreement that is entered 03 into before the effective date of this Act. In this section, "dealership agreement" has the 04 meaning given in AS 45.27.390, enacted by sec. 2 of this Act. 05 * Sec. 7. This Act takes effect immediately under AS 01.10.070(c).