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 amends the qualifications and membership of the Arkansas Towing and Recovery Board, which will now consist of nine members appointed by the Governor and confirmed by the Senate. Key changes include the requirement that three members must be actively engaged in the towing industry, and the inclusion of representatives from the commercial trucking insurance industry, the trucking industry, and consumer advocates. Additionally, the bill introduces new definitions related to towing services and cargo, and establishes a complaint process that towing companies must display on their invoices.

Furthermore, 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, or to personal vehicle contents for a fee not exceeding 5%. It also mandates that towing companies provide assurance of future financial responsibility for the total invoice amount when releasing cargo or contents. An emergency clause is included, indicating the urgent need for these reforms to protect consumers from illegal towing practices. The act will take effect immediately upon approval by the Governor or after the expiration of the veto period.

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