| 3 | 2 | | *ZRC135* 04/07/2025 4:31:07 PM ZRC135 |
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| 4 | 3 | | State of Arkansas 1 |
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| 5 | 4 | | 95th General Assembly A Bill 2 |
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| 6 | 5 | | Regular Session, 2025 HOUSE BILL 2001 3 |
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| 7 | 6 | | 4 |
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| 8 | 7 | | By: Representative Painter 5 |
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| 9 | 8 | | By: Senator K. Hammer 6 |
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| 10 | 9 | | 7 |
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| 11 | 10 | | For An Act To Be Entitled 8 |
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| 12 | 11 | | AN ACT TO CREATE THE ARKANSAS TOWING AND RECOVERY 9 |
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| 13 | 12 | | REFORM AND EFFICIENCY ACT OF 2025; TO AMEND THE LAW 10 |
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| 14 | 13 | | CONCERNING THE ARKANSAS TOWING AND RECOVERY BOARD; TO 11 |
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| 15 | 14 | | AMEND THE QUALIFICATIONS AND MEMBERSHIP OF THE 12 |
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| 16 | 15 | | ARKANSAS TOWING AND RECOVERY BOARD; TO AMEND THE LAW 13 |
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| 17 | 16 | | CONCERNING A LIEN PLACED ON CARGO OR THE CONTENTS OF 14 |
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| 18 | 17 | | A PERSONAL VEHICLE; TO DECLARE AN EMERGENCY; AND FOR 15 |
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| 19 | 18 | | OTHER PURPOSES. 16 |
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| 20 | 19 | | 17 |
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| 21 | 20 | | 18 |
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| 22 | 21 | | Subtitle 19 |
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| 23 | 22 | | TO CREATE THE ARKANSAS TOWING AND 20 |
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| 24 | 23 | | RECOVERY REFORM AND EFFICIENCY ACT OF 21 |
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| 25 | 24 | | 2025; TO AMEND THE LAW CONCERNING THE 22 |
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| 26 | 25 | | ARKANSAS TOWING AND RECOVERY BOARD; AND 23 |
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| 27 | 26 | | TO DECLARE AN EMERGENCY. 24 |
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| 28 | 27 | | 25 |
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| 29 | 28 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 26 |
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| 30 | 29 | | 27 |
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| 31 | 30 | | SECTION 1. DO NOT CODIFY. Title. 28 |
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| 32 | 31 | | This act shall be known and may be cited as the "Arkansas Towing and 29 |
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| 33 | 32 | | Recovery Reform and Efficiency Act of 2025”. 30 |
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| 34 | 33 | | 31 |
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| 35 | 34 | | SECTION 2. Arkansas Code § 27-50-1202, concerning definitions related 32 |
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| 36 | 35 | | to the removal or immobilization of unattended or abandoned vehicles, is 33 |
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| 37 | 36 | | amended to add additional subdivisions to read as follows: 34 |
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| 38 | 37 | | (17) “Cargo” means goods and materials transported by a motor 35 |
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| 39 | 38 | | carrier, as defined under 49 C.F.R. § 390.5, as it existed on January 1, 36 HB2001 |
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| 40 | 39 | | |
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| 41 | 40 | | 2 04/07/2025 4:31:07 PM ZRC135 |
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| 42 | 41 | | 2025, including without limitation: 1 |
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| 43 | 42 | | (A) A pallet; 2 |
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| 44 | 43 | | (B) A container; 3 |
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| 45 | 44 | | (C) Bracing; 4 |
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| 46 | 45 | | (D) An air pillow; 5 |
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| 47 | 46 | | (E) A tie-down assembly or other securement system; 6 |
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| 48 | 47 | | (F) A cradle; 7 |
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| 49 | 48 | | (G) A chock; and 8 |
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| 50 | 49 | | (H) Any other dunnage or packing; and 9 |
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| 51 | 50 | | (18)(A) “Towing services” means to tow, recover, upright, 10 |
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| 52 | 51 | | transport, repossess, immobilize, store, or otherwise facilitate the movement 11 |
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| 53 | 52 | | or storage of vehicles on or off of a road, street, or highway. 12 |
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| 54 | 53 | | (B) “Towing services” includes the solicitation of towing 13 |
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| 55 | 54 | | services and the incidental labor, services, and equipment necessary for on -14 |
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| 56 | 55 | | road or off-road recovery and cleanup for work actually performed by the tow 15 |
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| 57 | 56 | | business. 16 |
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| 58 | 57 | | 17 |
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| 59 | 58 | | SECTION 3. Arkansas Code § 27 -50-1203(a) and (b), concerning the 18 |
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| 60 | 59 | | creation of the Arkansas Towing and Recovery Board, are amended to read as 19 |
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| 61 | 60 | | follows: 20 |
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| 62 | 61 | | (a)(1) There is hereby created the Arkansas Towing and Recovery Board 21 |
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| 63 | 62 | | consisting of nine (9) members appointed by the Governor and confirmed by the 22 |
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| 64 | 63 | | Senate, who shall serve terms of three (3) years. 23 |
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| 65 | 64 | | (2)(A) Five (5) members shall be appointed from the towing 24 |
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| 66 | 65 | | industry and shall be: Three (3) members shall be actively engaged in 25 |
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| 67 | 66 | | business in the towing industry, licensed by the board, and appointed from 26 |
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| 68 | 67 | | the state at large 27 |
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| 69 | 68 | | (i) Licensed by the board to engage in nonconsent 28 |
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| 70 | 69 | | towing; and 29 |
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| 71 | 70 | | (ii) Appointed from the state at large . 30 |
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| 72 | 71 | | (B) One (1) member who is permitted to engage in 31 |
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| 73 | 72 | | repossession of vehicles using a tow vehicle shall be appointed from the 32 |
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| 74 | 73 | | state at large shall be the Director of the Division of the Arkansas State 33 |
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| 75 | 74 | | Police or his or her designee . 34 |
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| 76 | 75 | | (C)(i) Two (2) members who are not associated with the 35 |
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| 77 | 76 | | towing industry shall be appointed from the state at large One (1) member 36 HB2001 |
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| 78 | 77 | | |
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| 79 | 78 | | 3 04/07/2025 4:31:07 PM ZRC135 |
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| 80 | 79 | | shall be a current or former municipal chief of police or current or former 1 |
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| 81 | 80 | | county sheriff with knowledge of the towing industry. 2 |
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| 82 | 81 | | (ii) A member appointed under subdivision 3 |
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| 83 | 82 | | (a)(2)(C)(i) of this section may designate a member of his or her staff with 4 |
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| 84 | 83 | | knowledge of the towing industry to act on his or her behalf at any meeting 5 |
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| 85 | 84 | | of the board. 6 |
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| 86 | 85 | | (D) One (1) member shall be appointed from the commercial 7 |
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| 87 | 86 | | trucking insurance industry. 8 |
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| 88 | 87 | | (E) One (1) member shall be appointed from the trucking 9 |
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| 89 | 88 | | industry. 10 |
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| 90 | 89 | | (F) One (1) member shall have no affiliation with the 11 |
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| 91 | 90 | | towing industry and shall serve as a representative of consumers of towing 12 |
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| 92 | 91 | | services. 13 |
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| 93 | 92 | | (G) One (1) member shall be a currently employed or 14 |
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| 94 | 93 | | retired person with at least five (5) years of experience responding to fire 15 |
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| 95 | 94 | | and emergency response incidents. 16 |
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| 96 | 95 | | (b)(1) The appointed board members shall be residents of the State of 17 |
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| 97 | 96 | | Arkansas at the time of appointment and throughout their terms. 18 |
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| 98 | 97 | | (2)(A) A member appointed under subdivision (a)(2)(A) of this 19 |
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| 99 | 98 | | section shall remain licensed and engaged in the business of nonconsent 20 |
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| 100 | 99 | | towing. 21 |
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| 101 | 100 | | (B) A member appointed under subdivision (a)(2)(B) of this 22 |
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| 102 | 101 | | section shall be engaged in the business of vehicle repossession using a tow 23 |
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| 103 | 102 | | vehicle. 24 |
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| 104 | 103 | | (C) A member appointed under subdivision (a)(2)(D) of this 25 |
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| 105 | 104 | | section shall remain actively engaged in the insurance industry. 26 |
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| 106 | 105 | | (D) A member appointed under subdivision (a)(2)(A) , 27 |
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| 107 | 106 | | subdivision (a)(2)(B), or subdivision (a)(2)(D) of this section who no longer 28 |
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| 108 | 107 | | satisfies the requirements for his or her board position under subdivision 29 |
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| 109 | 108 | | (b)(2)(A), subdivision (b)(2)(B), or subdivision (b)(2)(C) of this section 30 |
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| 110 | 109 | | shall: 31 |
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| 111 | 110 | | (i) Provide notification of his or her change of 32 |
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| 112 | 111 | | status to the Governor and the Director of the Arkansas Towing and Recovery 33 |
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| 113 | 112 | | Board; and 34 |
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| 114 | 113 | | (ii) Resign from the board within thirty (30) days 35 |
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| 115 | 114 | | of the date upon which the member no longer satisfies the requirements of 36 HB2001 |
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| 116 | 115 | | |
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| 117 | 116 | | 4 04/07/2025 4:31:07 PM ZRC135 |
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| 118 | 117 | | subdivision (b)(2)(A), subdivision (b)(2)(B), or subdivision (b)(2)(C) of 1 |
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| 119 | 118 | | this section immediately. 2 |
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| 120 | 119 | | 3 |
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| 121 | 120 | | SECTION 4. Arkansas Code § 27 -50-1208(a)(2), concerning a possessory 4 |
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| 122 | 121 | | lien on an unattended or abandoned vehicle held by a towing and storage firm, 5 |
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| 123 | 122 | | is amended to add an additional subdivision to read as follows: 6 |
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| 124 | 123 | | (D)(i) A possessory lien under this section shall not 7 |
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| 125 | 124 | | extend to: 8 |
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| 126 | 125 | | (a) Cargo, if the owner of the cargo or his or 9 |
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| 127 | 126 | | her authorized representative pays a fee not to exceed twenty percent (20%) 10 |
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| 128 | 127 | | of the invoice for the towing and storing services to the towing and storage 11 |
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| 129 | 128 | | firm; or 12 |
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| 130 | 129 | | (b) Except for items to which a possessory 13 |
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| 131 | 130 | | lien under this section shall not extend under subdivision (a)(2)(B) of this 14 |
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| 132 | 131 | | section, the contents of a personal vehicle if the owner of the personal 15 |
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| 133 | 132 | | vehicle or his or her authorized representative pays a fee not to exceed five 16 |
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| 134 | 133 | | percent (5%) of the invoice for the towing and storing services to the towing 17 |
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| 135 | 134 | | and storage firm. 18 |
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| 136 | 135 | | (ii) When making a payment of a fee under 19 |
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| 137 | 136 | | subdivision (a)(2)(D)(i) of this section, the owner of the cargo or the 20 |
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| 138 | 137 | | contents of a personal vehicle or his or her authorized representative shall 21 |
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| 139 | 138 | | provide the towing and storage firm with an assurance of future financial 22 |
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| 140 | 139 | | responsibility for the total invoice amount for the towing and storage 23 |
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| 141 | 140 | | services for the motor vehicle from which the cargo or the contents of a 24 |
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| 142 | 141 | | personal vehicle are taken. 25 |
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| 143 | 142 | | (iii)(a) An owner of the cargo or the contents of a 26 |
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| 144 | 143 | | personal vehicle or his or her authorized representative who has paid a fee 27 |
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| 145 | 144 | | under subdivision (a)(2)(D)(i) of this section shall not be required to pay 28 |
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| 146 | 145 | | the total invoice amount for the towing and storing services before the 29 |
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| 147 | 146 | | release of the cargo or the contents of a personal vehicle. 30 |
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| 148 | 147 | | (b) This subdivision (a)(2)(D) does not 31 |
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| 149 | 148 | | prohibit a towing and storage firm from collecting the total invoice amount 32 |
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| 150 | 149 | | for towing and storage services from the owner or lienholder or perfecting 33 |
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| 151 | 150 | | the possessory lien under this section. 34 |
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| 152 | 151 | | (c) Upon the payment of a fee under 35 |
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| 153 | 152 | | subdivision (a)(2)(D)(i) of this section, the owner of the cargo or the 36 HB2001 |
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| 154 | 153 | | |
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| 156 | 155 | | contents of a personal vehicle shall be credited the amount paid toward the 1 |
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| 157 | 156 | | total invoice amount for the towing and storing services. 2 |
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| 158 | 157 | | (iv) An owner of the cargo or the contents of a 3 |
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| 159 | 158 | | personal vehicle or his or her authorized representative shall ensure that 4 |
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| 160 | 159 | | the entity retrieving the cargo or the contents of a personal vehicle from a 5 |
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| 161 | 160 | | towing and storage firm is insured and is liable for any damage that may 6 |
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| 162 | 161 | | occur at the business location of the towing and storage firm as a result of 7 |
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| 163 | 162 | | the retrieval of the cargo or the contents of a personal vehicle. 8 |
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| 164 | 163 | | (v) If a motor vehicle is towed due to a police -9 |
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| 165 | 164 | | initiated tow and there is no dispute as to the fees assessed by the 10 |
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| 166 | 165 | | authorized towing and storage firm: 11 |
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| 167 | 166 | | (a) The owner or operator of the vehicle or 12 |
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| 168 | 167 | | his or her authorized representative shall pay the authorized towing and 13 |
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| 169 | 168 | | storage firm's invoice; and 14 |
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| 170 | 169 | | (b) The authorized towing and storage company 15 |
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| 171 | 170 | | shall release the motor vehicle and any cargo immediately. 16 |
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| 172 | 171 | | (vi) If a motor vehicle is towed due to a police -17 |
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| 173 | 172 | | initiated tow and there is a genuine dispute as to the reasonableness of 18 |
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| 174 | 173 | | amount of the fees assessed by the authorized towing and storage company, the 19 |
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| 175 | 174 | | authorized towing and storage company shall release the cargo immediately to 20 |
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| 176 | 175 | | the owner or the owner's designee in accordance with this subsection upon the 21 |
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| 177 | 176 | | submission of: 22 |
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| 178 | 177 | | (a) If the cargo does not belong to the 23 |
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| 179 | 178 | | transportation company, proof of ownership of the cargo; or 24 |
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| 180 | 179 | | (b) If the cargo belongs to the transportation 25 |
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| 181 | 180 | | company: 26 |
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| 182 | 181 | | (1) A letter from the vehicle owner's 27 |
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| 183 | 182 | | insurance company stating that there is coverage for the relevant claim or 28 |
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| 184 | 183 | | accident that includes without limitation a claim number, a policy number, 29 |
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| 185 | 184 | | and the policy limits; or 30 |
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| 186 | 185 | | (2) If the transportation company does 31 |
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| 187 | 186 | | not have an insurance policy sufficient to cover the cost of the cargo clean -32 |
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| 188 | 187 | | up, a signed letter of guarantee from the transportation company. 33 |
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| 189 | 188 | | 34 |
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| 190 | 189 | | SECTION 5. Arkansas Code § 27 -50-1218, concerning the consumer 35 |
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| 191 | 190 | | complaint process with the Arkansas Towing and Recovery Board, is amended to 36 HB2001 |
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| 192 | 191 | | |
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| 193 | 192 | | 6 04/07/2025 4:31:07 PM ZRC135 |
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| 194 | 193 | | add an additional subsection to read as follows: 1 |
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| 195 | 194 | | (e)(1) A towing and storage company shall display notice of the 2 |
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| 196 | 195 | | complaint process as provided for under subdivision (e)(2) of this section. 3 |
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| 197 | 196 | | (2) Beginning July 1, 2025, notice of the complaint process 4 |
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| 198 | 197 | | provided for under this section shall be: 5 |
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| 199 | 198 | | (A) In the form provided in subdivision (e)(3) of this 6 |
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| 200 | 199 | | section or as modified by the board; and 7 |
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| 201 | 200 | | (B) Prominently printed in bold letters at the bottom of 8 |
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| 202 | 201 | | each invoice for towing services. 9 |
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| 203 | 202 | | (3) Notice of the complaint process required under this section 10 |
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| 204 | 203 | | shall: 11 |
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| 205 | 204 | | (A) Include without limitation: 12 |
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| 206 | 205 | | (i) A statement that a complaint may be filed with 13 |
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| 207 | 206 | | the board under this section; 14 |
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| 208 | 207 | | (ii) The telephone number of the board; and 15 |
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| 209 | 208 | | (iii) The website of the board; and 16 |
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| 210 | 209 | | (B) Be substantially in the following form: 17 |
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| 211 | 210 | | "COMPLAINTS: A PERSON DAMAGED OR OVERCHARGED MAY FILE 18 |
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| 212 | 211 | | A COMPLAINT UNDER ARKANSAS CODE § 27 -50-1218 WITH THE ARKANSAS TOWING AND 19 |
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| 213 | 212 | | RECOVERY BOARD, (501) 682-3801, www.artowing.arkansas.gov". 20 |
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| 214 | 213 | | 21 |
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| 215 | 214 | | SECTION 6. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition provisions 22 |
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| 216 | 215 | | — Appointment of members of the Arkansas Towing and Recovery Board. 23 |
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| 217 | 216 | | (a) The current members at the time of the effective date of this act 24 |
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| 218 | 217 | | of the Arkansas Towing and Recovery Board are removed, and the Governor shall 25 |
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| 219 | 218 | | appoint all board member positions, subject to confirmation by the Senate. 26 |
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| 220 | 219 | | (b) Until at least seven (7) members of the board are appointed and 27 |
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| 221 | 220 | | confirmed by the Senate, the Director of the Arkansas Towing and Recovery 28 |
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| 222 | 221 | | Board, in consultation with the Secretary of the Department of Labor and 29 |
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| 223 | 222 | | Licensing, shall exercise the powers and duties assigned to the board, except 30 |
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| 224 | 223 | | that the hearing and adjudication of a complaint filed with the board shall 31 |
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| 225 | 224 | | be continued until a quorum of the newly constituted board is assembled to 32 |
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| 226 | 225 | | hear and adjudicate the complaint. 33 |
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| 227 | 226 | | 34 |
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| 228 | 227 | | SECTION 7. TEMPORARY LANGUAGE. DO NOT CODIFY. Transition Provisions 35 |
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| 229 | 228 | | - Initial terms of members of the Arkansas Towing and Recovery Board. 36 HB2001 |
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| 230 | 229 | | |
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| 232 | 231 | | (a) The initial term of the three (3) members of the Arkansas Towing 1 |
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| 233 | 232 | | and Recovery Board who are actively engaged in business in the towing 2 |
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| 234 | 233 | | industry, licensed by the board, and appointed from the state at large shall 3 |
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| 235 | 234 | | expire on July 1 of 2026, 2027, and 2028, respectively. 4 |
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| 236 | 235 | | (b) The term of the member of the board who is the Director of the 5 |
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| 237 | 236 | | Division of the Arkansas State Police or his or her designee shall be for the 6 |
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| 238 | 237 | | duration of time of his or her appointment as Director of the Division of the 7 |
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| 239 | 238 | | Arkansas State Police. 8 |
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| 240 | 239 | | (c) The initial term of the member of the board who is a current or 9 |
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| 241 | 240 | | former municipal chief of police or current or former county sheriff with 10 |
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| 242 | 241 | | knowledge of the towing industry shall expire on July 1, 2028. 11 |
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| 243 | 242 | | (d) The initial term of the member of the board who is appointed from 12 |
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| 244 | 243 | | the commercial trucking insurance industry shall expire on July 1, 2027. 13 |
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| 245 | 244 | | (e) The initial term of the member of the board who is appointed from 14 |
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| 246 | 245 | | the trucking industry shall expire on July 1, 2028. 15 |
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| 247 | 246 | | (f) The initial term of the member of the board who has no affiliation 16 |
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| 248 | 247 | | with the towing industry and who serves as a representative of consumers of 17 |
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| 249 | 248 | | towing services shall expire on July 1, 2026. 18 |
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| 250 | 249 | | (g) The initial term of the member of the board who is a currently 19 |
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| 251 | 250 | | employed or retired person with at least five (5) years of experience 20 |
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| 252 | 251 | | responding to fire and emergency response incidents shall expire on July 1, 21 |
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| 253 | 252 | | 2027. 22 |
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| 254 | 253 | | 23 |
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| 255 | 254 | | SECTION 8. EMERGENCY CLAUSE. It is found and determined by the 24 |
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| 256 | 255 | | General Assembly of the State of Arkansas that an urgent need exists to enact 25 |
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| 257 | 256 | | towing industry reforms, improve towing industry regulation and enforcement, 26 |
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| 258 | 257 | | and provide statewide efficiencies to state and local law enforcement; and 27 |
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| 259 | 258 | | that this act will accomplish these objectives and is immediately necessary 28 |
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| 260 | 259 | | to protect consumers from illegal, fraudulent, and unauthorized towing 29 |
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| 261 | 260 | | practices. Therefore, an emergency is declared to exist, and this act being 30 |
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| 262 | 261 | | immediately necessary for the preservation of the public peace, health, and 31 |
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| 263 | 262 | | safety shall become effective on: 32 |
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| 264 | 263 | | (1) The date of its approval by the Governor; 33 |
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| 265 | 264 | | (2) If the bill is neither approved nor vetoed by the Governor, the 34 |
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| 266 | 265 | | expiration of the period of time during which the Governor may veto the bill; 35 |
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| 267 | 266 | | or 36 HB2001 |
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| 268 | 267 | | |
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| 270 | 269 | | (3) If the bill is vetoed by the Governor and the veto is overridden, 1 |
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| 271 | 270 | | the date the last house overrides the veto. 2 |
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| 272 | 271 | | 3 |
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| 273 | 272 | | 4 |
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