The Arkansas Towing and Recovery Reform and Efficiency Act of 2025 aims to enhance the regulation and efficiency of the towing industry in Arkansas. The bill establishes the Arkansas Towing and Recovery Board, which will consist of nine members appointed by the Governor and confirmed by the Senate. Key changes to the board's composition include the requirement that three members must be actively engaged in the towing industry, and the inclusion of representatives from law enforcement, the commercial trucking insurance industry, and consumer advocacy. The bill also introduces new definitions related to towing services and cargo, and it mandates that board members maintain their licenses and industry engagement throughout their terms.

Additionally, the bill addresses the issue of possessory liens on cargo and personal vehicle contents, stipulating that such liens will not extend to cargo if the owner pays a fee not exceeding 20% of the towing invoice. It also requires towing companies to inform customers about the complaint process, which must be prominently displayed on invoices starting July 1, 2025. The act declares an emergency, emphasizing the urgent need for reforms to protect consumers from illegal towing practices and improve overall industry regulation.

Statutes affected:
HB 2001: 27-50-1202, 27-50-1203(a), 27-50-1208(a), 27-50-1218
Act 932: 27-50-1202, 27-50-1203(a), 27-50-1208(a), 27-50-1218