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 towing companies provide clear notice of the consumer complaint process on their invoices.

Additionally, the bill modifies the existing laws regarding possessory liens on cargo and personal vehicle contents, allowing owners to recover their cargo or contents by paying a reduced fee without having to settle the total invoice for towing and storage services upfront. The act declares an emergency, emphasizing the urgent need for reforms to protect consumers from illegal towing practices. The provisions of 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