The Oklahoma Senate has sent a bill to the governor to cap storage fees for total loss vehicles. 

SB641 caps the storage fees at $39 for gas vehicles and $125 a day for electric vehicles (EVs) that have sustained damage to the battery pack. On the 11th day, the storage rate can increase to $75 a day and $200 for EVs, according to the bill. 

Oklahoma Sen. Lonnie Paxton (R-23), an Oklahoma Farm Bureau insurance agent, introduced the bill in February. He attempted to pass (SB1853 and SB1741) similar bills last year. 

He reminded the Senate that they’ve already heard the bill, which was stuffed with new language immediately before the vote earlier this year. 

On Monday, he said the bill was the same but with a few minor amendments. 

“The only thing that changed was the continued negotiations to increase the storage rate for those cars that are electric cars to allow for a little more space in the shop in case they have problems, such as catching on fire,” Paxton said. 

The amended version of the bill passed the House earlier this month with a 58-32 vote. It raised the rate for EV storage rate from $78 to $125. 

There was no debate on the Senate floor prior to the bill passing 33-13.

Mark Tedford (R-69), the House bill sponsor, told the House earlier this month that everybody is getting something from the bill. 

He received pushback from some representatives. 

Chris Sneed (R-14) said that he was told there are 910 shops in the state, but only four bad actors, three of which are out of business. 

Sneed asked Tedford, “Would you agree that maybe we don’t need to continue with the bill since they are out of business?”  

Tedford responded that he has been unable to verify that there were only four bad actors. He said in a review of invoices, he found various shops charging high rates for storage. 

“The narrative I got from the body shops is that they were charging excessive rates to incentivize the carriers to get the car off their lots quicker,” Tedford said. “I think this practice is more widespread than just four body shops.” 

Sneed responded, “Maybe we should come back and run a bill that would encourage the insurance companies to pick up their vehicles quicker next year.” 

Andy Fugate (D-94) said some shops may be using the market to force insurance companies to move quicker. 

Tedford responded that any slowness in a claim is separate from the storage rate and that the storage rate only causes a dispute that further disrupts the process. 

Fugate asked, “If the insurance company has a dysfunction, why should this body enable it to continue with that dysfunction? It seems like a market with a high price. For instance, it might force that insurance company to clean house and get additional services to handle the capacity issues.”

Collision repair shops have argued it is impossible to set standard pricing for storage because the cost for storing a vehicle is determined by multiple variables, including the cost of the property the shop sits on and the security measures used to store the vehicle, such as lighting, cameras, and fencing. Using property to store vehicles also results in the loss of bringing in new ones to repair, which can result in lost revenue. This lost revenue could vary depending on the certification level of technicians and the type of vehicles repaired.

Many of these arguments have been raised during multiple hearings held by the California Bureau of Automotive Repair (BAR) as it works to set regulations on storage fees in the state.

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Oklahoma Sen. Lonnie Paxton (R-23) speaks on the floor of the Senate May 19/screenshot