Senate approves bill letting ATV and low‑speed vehicle sellers use third‑party service centers within 40 miles

Members of the Arkansas Senate on Wednesday approved Senate Bill 94, changing requirements for new all‑terrain vehicle (ATV) and low‑speed vehicle dealers so they no longer must maintain an on‑site service center at the selling location and may instead coordinate warranty and repair service with a provider within a 40‑mile radius.

Supporters and opponents framed the bill as a balance between consumer choice and dealer responsibility. Senator Kevin Dodson, who introduced the measure on the floor, described it as “a consumer choice bill,” saying it would allow people to purchase an ATV or UTV from outlets that do not have a service bay on the same premises.

The bill’s sponsor on the floor, Senator Tom Dawson, said the change is intended to expand market options and that Arkansas is currently one of two states that prohibit dealers from locating warranty service off‑site. “This bill would require ... that they coordinate with a warranty service provider within 40 miles of the new all‑terrain vehicle dealer,” Dawson said in closing remarks, and he argued that opening the market could spur more local service providers.

Opponents warned that removing the on‑site service requirement could weaken customer service and delay repairs. “When a manufacturer sells their product in Arkansas and franchises locations to sell that product, we have always maintained that those dealers have the ability to service the warranty,” said Senator Jon Payton, who said the bill breaks the dealer‑customer relationship by allowing warranty work to be farmed out to third parties. “I don’t like a bill like this that would put it in the hands of a third party,” Payton said.

Senator Page, speaking against the bill, gave a dealer’s perspective and recounted an example of extended waits for parts at an off‑site authorized service center: “I remember when my dad bought a Craftsman lawnmower … and it broke down. … it’s about a 6 month wait,” Page said, arguing that customers receive better care when warranty service is performed by the same business that sold the product.

Several senators noted compromises adopted during committee work. Senator Pence and others described an agreement raising an originally proposed 30‑mile requirement to 40 miles to account for rural service deserts. Senator Pence said the 40‑mile radius was part of a compromise “brought forth by both parties.” Senator Dawson added that the bill requires a dealer to “provide service ... to the purchaser” by coordinating with a service provider within that radius.

Lawmakers also raised practical concerns about burdens on rural residents. “Wouldn’t it be … putting on our citizens to have them have to drive 40 miles one way?” asked Senator Stubblefield, noting that an 80‑mile round trip could be costly in time and fuel. Dawson acknowledged the tradeoffs, saying the bill is not perfect but that it offers lower prices and increased market access that could make some vehicles more affordable.

After debate and a roll call, the Senate reported the result as 20 ayes, 9 nays, with additional senators recorded as present or not voting; the bill passed and was transmitted to the House. (The roll call and board count as announced on the floor was: “20 aye, 9 nay, and 1 not, 2 present and 1 non‑voting,” as read during the tally.)

The measure’s change applies to licensing and warranty coordination for new ATV and low‑speed vehicle dealers; the bill text specifies coordination with a warranty service provider within 40 miles but does not require that the provider be owned by the selling dealer. The bill does not itself amend warranty terms set by manufacturers; senators noted warranty language remains a contract issue between buyers, dealers and manufacturers.

The bill drew testimony and questions from multiple senators representing both rural and urban districts and will go to the House for further consideration.

Votes at a glance: the Senate announced the bill passed and transmitted it to the House. The floor announcement and roll call are recorded in the Senate journal for Feb. 19, 2025.