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Dealers, safety advocates oppose easing ATV service-center requirement; sponsor pulls bill for rewrite
Summary
Senate Bill 94, which would remove a statutory requirement that new all-terrain-vehicle (ATV) dealers maintain an on-site service center, drew extended opposition from franchised dealers, consumer-safety speakers and former motor vehicle regulators; sponsor Senator Dodson pulled the bill to make changes.
Senate Bill 94, presented by Senator Dodson, would have amended the motor-vehicle code to exempt new ATV and low-speed-vehicle dealers from an existing requirement that they maintain a dedicated service center and parts area at their licensed dealership location.
"This would add an exception to the motor vehicle statute ... that says that an ATV dealer or new low speed vehicle dealer is not required to have a dedicated service center," Dodson said in committee. He described the change as a free-market measure intended to increase consumer choice and allow more retailers to sell ATVs.
Franchised power-sports dealers and former motor-vehicle regulators warned lawmakers that removing the on-site service requirement could leave consumers without reliable warranty repairs and post-sale support. Mike Johnson of Mac Johnson Powersports in Russellville and Hot Springs said manufacturers supply special tools, parts and diagnostic programs to franchise dealers and that "the warranty is valid" only at authorized dealers. "If someone brought in a brand that he didn't sell, he can't do warranty work," Johnson said.
Other dealers and industry representatives told the committee that many buyers finance expensive units and depend on local warranty and repair services; they said a shift toward big-box retail or lower-cost imported brands could result in customers who cannot find authorized warranty service when problems arise. Former Motor Vehicle Commission director Sandy Stroop emphasized the franchise, licensing and titling processes that link warranty registration and recall notifications to dealer records.
Committee members asked for clarification on licensing, warranty coverage and geographic availability of authorized service centers. Senator Flowers and others raised public-safety concerns about inexperienced repair shops and the need to ensure recalls and safety notices reach consumers.
After more than three hours of testimony and questions, sponsor Dodson asked to "pull it down today, take a look at it a little bit longer, and then we can bring it back" so he could work with committee members and stakeholders. The committee agreed without objection and the bill was withdrawn from further consideration at that hearing so the sponsor could revise the proposal.
Speakers who opposed the bill included franchised dealers and representatives from power-sports shops across Arkansas who cited training, manufacturer diagnostic tools and warranty-registration practices as reasons to keep the existing service-center requirement.
