Stricken language would be deleted from and underlined language would be added to present law.
*ZRC135* 04/07/2025 4:31:07 PM ZRC135
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 2001 3
4
By: Representative Painter 5
By: Senator K. Hammer 6
7
For An Act To Be Entitled 8
AN ACT TO CREATE THE ARKANSAS TOWING AND RECOVERY 9
REFORM AND EFFICIENCY ACT OF 2025; TO AMEND THE LAW 10
CONCERNING THE ARKANSAS TOWING AND RECOVERY BOARD; TO 11
AMEND THE QUALIFICATIONS AND MEMBERSHIP OF THE 12
ARKANSAS TOWING AND RECOVERY BOARD; TO AMEND THE LAW 13
CONCERNING A LIEN PLACED ON CARGO OR THE CONTENTS OF 14
A PERSONAL VEHICLE; TO DECLARE AN EMERGENCY; AND FOR 15
OTHER PURPOSES. 16
17
18
Subtitle 19
TO CREATE THE ARKANSAS TOWING AND 20
RECOVERY REFORM AND EFFICIENCY ACT OF 21
2025; TO AMEND THE LAW CONCERNING THE 22
ARKANSAS TOWING AND RECOVERY BOARD; AND 23
TO DECLARE AN EMERGENCY. 24
25
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26
27
SECTION 1. DO NOT CODIFY. Title. 28
This act shall be known and may be cited as the "Arkansas Towing and 29
Recovery Reform and Efficiency Act of 2025”. 30
31
SECTION 2. Arkansas Code § 27-50-1202, concerning definitions related 32
to the removal or immobilization of unattended or abandoned vehicles, is 33
amended to add additional subdivisions to read as follows: 34
(17) “Cargo” means goods and materials transported by a motor 35
carrier, as defined under 49 C.F.R. § 390.5, as it existed on January 1, 36 HB2001
2 04/07/2025 4:31:07 PM ZRC135
2025, including without limitation: 1
(A) A pallet; 2
(B) A container; 3
(C) Bracing; 4
(D) An air pillow; 5
(E) A tie-down assembly or other securement system; 6
(F) A cradle; 7
(G) A chock; and 8
(H) Any other dunnage or packing; and 9
(18)(A) “Towing services” means to tow, recover, upright, 10
transport, repossess, immobilize, store, or otherwise facilitate the movement 11
or storage of vehicles on or off of a road, street, or highway. 12
(B) “Towing services” includes the solicitation of towing 13
services and the incidental labor, services, and equipment necessary for on -14
road or off-road recovery and cleanup for work actually performed by the tow 15
business. 16
17
SECTION 3. Arkansas Code § 27 -50-1203(a) and (b), concerning the 18
creation of the Arkansas Towing and Recovery Board, are amended to read as 19
follows: 20
(a)(1) There is hereby created the Arkansas Towing and Recovery Board 21
consisting of nine (9) members appointed by the Governor and confirmed by the 22
Senate, who shall serve terms of three (3) years. 23
(2)(A) Five (5) members shall be appointed from the towing 24
industry and shall be: Three (3) members shall be actively engaged in 25
business in the towing industry, licensed by the board, and appointed from 26
the state at large 27
(i) Licensed by the board to engage in nonconsent 28
towing; and 29
(ii) Appointed from the state at large . 30
(B) One (1) member who is permitted to engage in 31
repossession of vehicles using a tow vehicle shall be appointed from the 32
state at large shall be the Director of the Division of the Arkansas State 33
Police or his or her designee . 34
(C)(i) Two (2) members who are not associated with the 35
towing industry shall be appointed from the state at large One (1) member 36 HB2001
3 04/07/2025 4:31:07 PM ZRC135
shall be a current or former municipal chief of police or current or former 1
county sheriff with knowledge of the towing industry. 2
(ii) A member appointed under subdivision 3
(a)(2)(C)(i) of this section may designate a member of his or her staff with 4
knowledge of the towing industry to act on his or her behalf at any meeting 5
of the board. 6
(D) One (1) member shall be appointed from the commercial 7
trucking insurance industry. 8
(E) One (1) member shall be appointed from the trucking 9
industry. 10
(F) One (1) member shall have no affiliation with the 11
towing industry and shall serve as a representative of consumers of towing 12
services. 13
(G) One (1) member shall be a currently employed or 14
retired person with at least five (5) years of experience responding to fire 15
and emergency response incidents. 16
(b)(1) The appointed board members shall be residents of the State of 17
Arkansas at the time of appointment and throughout their terms. 18
(2)(A) A member appointed under subdivision (a)(2)(A) of this 19
section shall remain licensed and engaged in the business of nonconsent 20
towing. 21
(B) A member appointed under subdivision (a)(2)(B) of this 22
section shall be engaged in the business of vehicle repossession using a tow 23
vehicle. 24
(C) A member appointed under subdivision (a)(2)(D) of this 25
section shall remain actively engaged in the insurance industry. 26
(D) A member appointed under subdivision (a)(2)(A) , 27
subdivision (a)(2)(B), or subdivision (a)(2)(D) of this section who no longer 28
satisfies the requirements for his or her board position under subdivision 29
(b)(2)(A), subdivision (b)(2)(B), or subdivision (b)(2)(C) of this section 30
shall: 31
(i) Provide notification of his or her change of 32
status to the Governor and the Director of the Arkansas Towing and Recovery 33
Board; and 34
(ii) Resign from the board within thirty (30) days 35
of the date upon which the member no longer satisfies the requirements of 36 HB2001
4 04/07/2025 4:31:07 PM ZRC135
subdivision (b)(2)(A), subdivision (b)(2)(B), or subdivision (b)(2)(C) of 1
this section immediately. 2
3
SECTION 4. Arkansas Code § 27 -50-1208(a)(2), concerning a possessory 4
lien on an unattended or abandoned vehicle held by a towing and storage firm, 5
is amended to add an additional subdivision to read as follows: 6
(D)(i) A possessory lien under this section shall not 7
extend to: 8
(a) Cargo, if the owner of the cargo or his or 9
her authorized representative pays a fee not to exceed twenty percent (20%) 10
of the invoice for the towing and storing services to the towing and storage 11
firm; or 12
(b) Except for items to which a possessory 13
lien under this section shall not extend under subdivision (a)(2)(B) of this 14
section, the contents of a personal vehicle if the owner of the personal 15
vehicle or his or her authorized representative pays a fee not to exceed five 16
percent (5%) of the invoice for the towing and storing services to the towing 17
and storage firm. 18
(ii) When making a payment of a fee under 19
subdivision (a)(2)(D)(i) of this section, the owner of the cargo or the 20
contents of a personal vehicle or his or her authorized representative shall 21
provide the towing and storage firm with an assurance of future financial 22
responsibility for the total invoice amount for the towing and storage 23
services for the motor vehicle from which the cargo or the contents of a 24
personal vehicle are taken. 25
(iii)(a) An owner of the cargo or the contents of a 26
personal vehicle or his or her authorized representative who has paid a fee 27
under subdivision (a)(2)(D)(i) of this section shall not be required to pay 28
the total invoice amount for the towing and storing services before the 29
release of the cargo or the contents of a personal vehicle. 30
(b) This subdivision (a)(2)(D) does not 31
prohibit a towing and storage firm from collecting the total invoice amount 32
for towing and storage services from the owner or lienholder or perfecting 33
the possessory lien under this section. 34
(c) Upon the payment of a fee under 35
subdivision (a)(2)(D)(i) of this section, the owner of the cargo or the 36 HB2001
5 04/07/2025 4:31:07 PM ZRC135
contents of a personal vehicle shall be credited the amount paid toward the 1
total invoice amount for the towing and storing services. 2
(iv) An owner of the cargo or the contents of a 3
personal vehicle or his or her authorized representative shall ensure that 4
the entity retrieving the cargo or the contents of a personal vehicle from a 5
towing and storage firm is insured and is liable for any damage that may 6
occur at the business location of the towing and storage firm as a result of 7
the retrieval of the cargo or the contents of a personal vehicle. 8
(v) If a motor vehicle is towed due to a police -9
initiated tow and there is no dispute as to the fees assessed by the 10
authorized towing and storage firm: 11
(a) The owner or operator of the vehicle or 12
his or her authorized representative shall pay the authorized towing and 13
storage firm's invoice; and 14
(b) The authorized towing and storage company 15
shall release the motor vehicle and any cargo immediately. 16
(vi) If a motor vehicle is towed due to a police -17
initiated tow and there is a genuine dispute as to the reasonableness of 18
amount of the fees assessed by the authorized towing and storage company, the 19
authorized towing and storage company shall release the cargo immediately to 20
the owner or the owner's designee in accordance with this subsection upon the 21
submission of: 22
(a) If the cargo does not belong to the 23
transportation company, proof of ownership of the cargo; or 24
(b) If the cargo belongs to the transportation 25
company: 26
(1) A letter from the vehicle owner's 27
insurance company stating that there is coverage for the relevant claim or 28
accident that includes without limitation a claim number, a policy number, 29
and the policy limits; or 30
(2) If the transportation company does 31
not have an insurance policy sufficient to cover the cost of the cargo clean -32
up, a signed letter of guarantee from the transportation company. 33
34
SECTION 5. Arkansas Code § 27 -50-1218, concerning the consumer 35
complaint process with the Arkansas Towing and Recovery Board, is amended to 36 HB2001
6 04/07/2025 4:31:07 PM ZRC135
add an additional subsection to read as follows: 1
(e)(1) A towing and storage company shall display notice of the 2
complaint process as provided for under subdivision (e)(2) of this section. 3
(2) Beginning July 1, 2025, notice of the complaint process 4
provided for under this section shall be: 5
(A) In the form provided in subdivision (e)(3) of this 6
section or as modified by the board; and 7
(B) Prominently printed in bold letters at the bottom of 8
each invoice for towing services. 9
(3) Notice of the complaint process required under this section 10
shall: 11
(A) Include without limitation: 12
(i) A statement that a complaint may be filed with 13
the board under this section; 14
(ii) The telephone number of the board; and 15
(iii) The website of the board; and 16
(B) Be substantially in the following form: 17
"COMPLAINTS: A PERSON DAMAGED OR OVERCHARGED MAY FILE 18
A COMPLAINT UNDER ARKANSAS CODE § 27 -50-1218 WITH THE ARKANSAS TOWING AND 19
RECOVERY BOARD, (501) 682-3801, www.artowing.arkansas.gov". 20
21
SECTION 6. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition provisions 22
— Appointment of members of the Arkansas Towing and Recovery Board. 23
(a) The current members at the time of the effective date of this act 24
of the Arkansas Towing and Recovery Board are removed, and the Governor shall 25
appoint all board member positions, subject to confirmation by the Senate. 26
(b) Until at least seven (7) members of the board are appointed and 27
confirmed by the Senate, the Director of the Arkansas Towing and Recovery 28
Board, in consultation with the Secretary of the Department of Labor and 29
Licensing, shall exercise the powers and duties assigned to the board, except 30
that the hearing and adjudication of a complaint filed with the board shall 31
be continued until a quorum of the newly constituted board is assembled to 32
hear and adjudicate the complaint. 33
34
SECTION 7. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition Provisions 35
- Initial terms of members of the Arkansas Towing and Recovery Board. 36 HB2001
7 04/07/2025 4:31:07 PM ZRC135
(a) The initial term of the three (3) members of the Arkansas Towing 1
and Recovery Board who are actively engaged in business in the towing 2
industry, licensed by the board, and appointed from the state at large shall 3
expire on July 1 of 2026, 2027, and 2028, respectively. 4
(b) The term of the member of the board who is the Director of the 5
Division of the Arkansas State Police or his or her designee shall be for the 6
duration of time of his or her appointment as Director of the Division of the 7
Arkansas State Police. 8
(c) The initial term of the member of the board who is a current or 9
former municipal chief of police or current or former county sheriff with 10
knowledge of the towing industry shall expire on July 1, 2028. 11
(d) The initial term of the member of the board who is appointed from 12
the commercial trucking insurance industry shall expire on July 1, 2027. 13
(e) The initial term of the member of the board who is appointed from 14
the trucking industry shall expire on July 1, 2028. 15
(f) The initial term of the member of the board who has no affiliation 16
with the towing industry and who serves as a representative of consumers of 17
towing services shall expire on July 1, 2026. 18
(g) The initial term of the member of the board who is a currently 19
employed or retired person with at least five (5) years of experience 20
responding to fire and emergency response incidents shall expire on July 1, 21
2027. 22
23
SECTION 8. EMERGENCY CLAUSE. It is found and determined by the 24
General Assembly of the State of Arkansas that an urgent need exists to enact 25
towing industry reforms, improve towing industry regulation and enforcement, 26
and provide statewide efficiencies to state and local law enforcement; and 27
that this act will accomplish these objectives and is immediately necessary 28
to protect consumers from illegal, fraudulent, and unauthorized towing 29
practices. Therefore, an emergency is declared to exist, and this act being 30
immediately necessary for the preservation of the public peace, health, and 31
safety shall become effective on: 32
(1) The date of its approval by the Governor; 33
(2) If the bill is neither approved nor vetoed by the Governor, the 34
expiration of the period of time during which the Governor may veto the bill; 35
or 36 HB2001
8 04/07/2025 4:31:07 PM ZRC135
(3) If the bill is vetoed by the Governor and the veto is overridden, 1
the date the last house overrides the veto. 2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36