Stricken language would be deleted from and underlined language would be added to present law. Act 932 of the Regular Session *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 APPROVED: 4/21/25 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