Relating to: actions in circuit court alleging discrimination in employment, unfair honesty testing, or unfair genetic testing. (FE)

2025-2026 Regular Session Introduced by Tim Carpenter and 11 co-sponsors

SB 541 allows vehicle owners in Arkansas to reclaim towed property without paying liens first, promoting fairness while imposing penalties for unauthorized sales.

Representative Johnson added as a cosponsor

Purpose and Intent

Senate Bill 541 (SB 541) aims to amend existing laws regarding the towing and storage of vehicles, implements, or machinery in Arkansas. The primary intent of the bill is to ensure that owners of such items can reclaim their property even if they have not satisfied any possessory liens held by towing or storage companies or local governments.

Key Provisions

Release of Towed Property: The bill mandates that towing and storage companies must release a vehicle, implement, or piece of machinery to the owner or their representative, regardless of whether the owner has paid any outstanding possessory liens.

Prohibition on Sale: Owners are prohibited from selling the released property until they have satisfied the possessory lien.

Penalties for Violation: If an owner sells the property without satisfying the lien, they may be charged with a Class C misdemeanor. Additionally, upon conviction, the court may order the owner to pay twice the amount of the lien to the lien holder.

Affected Parties

Vehicle Owners: Individuals whose vehicles, implements, or machinery have been towed without consent will benefit from the ability to reclaim their property without first paying off liens.

Towing and Storage Companies: These companies will be required to comply with the new provisions regarding the release of property.

Local Governments: Cities and towns that hold possessory liens will need to adjust their practices in accordance with the new law.

Procedural Aspects

Introduced: March 20, 2025

Status: The bill was referred to the Health, Human Services, and Agriculture (HHS/AEN) and Judiciary (JDC) committees. However, it died in the Senate Committee at Sine Die adjournment on May 5, 2025.

Implementation Timeline: The bill allows for adequate time for implementation, with no immediate fiscal impact or additional resources required.

Conclusion

SB 541 represents a significant change in the handling of non-consensual towing and storage of vehicles in Arkansas. By allowing owners to reclaim their property without first settling liens, the bill seeks to provide greater access and fairness in the towing process, while also establishing penalties for those who may attempt to sell their property without addressing outstanding debts.

Bill