Guest Editorial: Oklahoma Bill Would Limit Repair Labor and Storage Rates

Independent automotive repairers in Oklahoma are up in arms about a harmful bill – Senate Bill (SB) 1853 – introduced in their state’s legislature that was written by State Senator Lonnie Paxton (R-23^rd district). Repairers across the country should be concerned as well.

Repair facilities suffer significant opportunity costs when vehicles sit untouched on their premises. These vehicles usurp valuable space that could be allocated towards taking in new repair jobs. Many repairers have first-hand experience dealing with an insurance company that consistently prolongs its claims decisions – sometimes for months – or mishandles payments following a completed repair.

While storage fees don’t enable repair businesses to recuperate the entire financial loss, they do help mitigate a problem inflicted upon them by a third party. Charging storage fees is more than fair, especially as a greater proportion of vehicle repairs are electric vehicles, which require more space than traditional vehicles for safe storage.

If enacted into law, SB 1853 would undermine this reasonable system. Repairers would not be allowed to charge storage fees for vehicles that a shop has finished repairing. Total loss vehicles would only be allowed to accrue storage fees from the point at which the customer or insurer determines the vehicle to be a total loss.

The bill would also cap the daily fee for storing vehicles indoor at:

• $39/day for vehicles less than 20 ft. long
• $47/day for vehicles 20-30 ft. long
•  $55/day for vehicles over 30 ft. long and under 8 ft. wide
• $70/day for vehicles over 30 ft. long and over 8 ft. wide

It would cap the daily fee for storing vehicles outdoor at:

• $24/day for vehicles less than 20 ft. long
• $32/day for vehicles 20-30 ft. long
• $39/day for vehicles over 30 ft. long and under 8 ft. wide
• $55/day for vehicles over 30 ft. long and over 8 ft. wide

These limits would force repairers to charge storage fees at a rate well below the fair market. Labor Rate Hero estimates the average cost of daily storage within a 25 mile radius of Tulsa is $101 and $119 within a 25 mile radius of Oklahoma City.

SB 1853 would also limit billable labor for vehicle disassembly to four hours and at a rate of no more than $60/hour. Repairers committed to proper restoration preach avoiding a one size fits all approach. Many disassemblies can be completed in less than four hours, but sometimes circumstances require more than 4 hours. This legislation would prevent repair plans from being tailored to each unique vehicle.

The 4 hours at $60/hour labor restrictions would also apply to administrative tasks. The bill includes many activities within its definition of “administrative charges,” including parts identification, pre-repair diagnostic scanning, creating a repair plan, and more. The Automotive Service Association (ASA) is especially concerned by the prospective of limits imposed on time spent on repair plans. In 2023, ASA’s Collision Operations Committee released a policy position that insurers should compensate repairers for the full labor expended for the repairer’s time spent researching OEM repair procedures because adhering to OEM repair procedures is critical to a repaired vehicle’s safety and functionality, and yet these procedures change frequently.

History demonstrates that elected officials are responsive to the concerns of the repair industry when enough stakeholders communicate their concerns. ASA has created an action page that allows residents of Oklahoma to easily send an email to their state senator and state representative that urges them to oppose SB 1853.

History also demonstrates that bills enacted in one state often become a template or inspiration for enacting similar bills in other states. ASA encourages those who do not reside in Oklahoma to share the action with repairers they know who do reside in Oklahoma to help prevent bills like SB 1853 from appearing in their own state’s legislature. They can also register for ASA’s Taking the Hill grassroots advocacy network to receive alerts on federal and state government activities that could impact their ability to run their repair facility.