To Amend The Requirement For New All-terrain Vehicle Dealers And New Low Speed Vehicle Dealers To Maintain Service And Parts Storage Areas.
Summary
SB94 amends Arkansas law governing licensing requirements for new motor vehicle dealers, but only as applied to new all-terrain vehicle dealers and new low speed vehicle dealers. Under current law, a new motor vehicle dealer generally must maintain adequate space for display, repair and service work, and storage of parts and accessories, and must perform repair and warranty services at the licensed location. The bill creates an exception for ATV and low-speed vehicle dealers, allowing them to operate without a dedicated service and parts area inside the dealership and without performing repair and warranty work on-site.
Instead, these dealers must either provide service for the vehicles they sell or give the purchaser the name of a nearby service provider within 40 miles that will service the vehicle. They must also provide a warranty or manufacturer’s warranty, coordinate with a warranty service provider within 40 miles, and disclose service-provider information to both the Arkansas Motor Vehicle Commission and the purchaser. The commission is directed to adopt rules to implement the changes, and the act applies to both current licensees and future applicants.
Impact
The bill narrows the facility and service obligations in Arkansas Code § 23-112-302(e) for a specific subset of dealers: new all-terrain vehicle dealers and new low speed vehicle dealers. It does not eliminate service or warranty responsibilities, but it shifts them away from an on-site dealership requirement and toward disclosure, coordination, and off-site service arrangements. The Arkansas Motor Vehicle Commission must promulgate rules, and existing licensed dealers as well as applicants are subject to the new framework.
Sentiment
The recorded votes suggest the bill had meaningful but not overwhelming support. It passed the Senate 20-9 on third reading and the House 75-12 on third reading, indicating a clear majority in favor while also drawing a notable minority of opposition. With no committee transcripts available, the available record suggests the measure was generally accepted as a regulatory easing for a narrow class of dealers rather than a broadly controversial overhaul.
Contention
The main point of contention is the relaxation of physical facility requirements for ATV and low-speed vehicle dealers. Supporters likely viewed the change as reducing unnecessary overhead for smaller or specialized dealers and aligning the law with how these vehicles are actually serviced. Opponents may have been concerned that removing the dedicated service-and-parts-area requirement could weaken consumer convenience, after-sale support, or warranty access, even though the bill preserves service and disclosure obligations through nearby providers and commission oversight.