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HB 2001

TO CREATE THE ARKANSAS TOWING AND RECOVERY REFORM AND EFFICIENCY ACT OF 2025; TO AMEND THE LAW CONCERNING THE ARKANSAS TOWING AND RECOVERY BOARD; AND TO DECLARE AN EMERGENCY.

2025 Regular Session Introduced by Kim Hammer and 1 co-sponsor

HB 2001 modernizes Arkansas towing regulations, creating a board for oversight, clarifying lien laws, and allowing consumers to retrieve property with reduced fees.

Notification that HB2001 is now Act 932
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WeVote Research Nonpartisan
Bill Summary · HB 2001

Summary of HB 2001: Arkansas Towing and Recovery Reform and Efficiency Act of 2025

Purpose and Intent

House Bill 2001, known as the Arkansas Towing and Recovery Reform and Efficiency Act of 2025, aims to modernize and improve the regulatory framework governing towing and recovery services in Arkansas. The bill seeks to enhance the efficiency of the Arkansas Towing and Recovery Board, clarify definitions related to towing services, and amend lien laws concerning cargo and personal vehicle contents.

Key Provisions

1. Creation of the Arkansas Towing and Recovery Board

  • The bill establishes the Arkansas Towing and Recovery Board, consisting of nine members appointed by the Governor and confirmed by the Senate.
  • Board composition includes:
    • Five members from the towing industry.
    • One member from the vehicle repossession sector.
    • Two members with no ties to the towing industry, including a former police chief or sheriff.
    • One member representing the commercial trucking insurance industry.
    • One consumer representative with experience in towing services.

2. Definitions and Scope of Towing Services

  • The bill expands definitions related to towing services, including:
    • "Cargo": Goods transported by motor carriers, detailing various items such as pallets, containers, and packing materials.
    • "Towing services": Encompasses a range of activities including towing, recovery, and storage of vehicles.

3. Amendments to Lien Laws

  • The bill modifies the existing laws regarding possessory liens on unattended or abandoned vehicles:
    • A lien will not extend to cargo if the owner pays a fee of up to 20% of the towing invoice.
    • For personal vehicle contents, the fee is capped at 5% of the invoice.
    • Owners can retrieve cargo or contents without paying the total invoice upfront, provided they assure future financial responsibility.

4. Emergency Clause

  • The bill includes an emergency clause, allowing it to take effect immediately upon passage, emphasizing the need for prompt implementation of the reforms.

Affected Parties

  • Towing and Recovery Businesses: The bill directly impacts how these businesses operate, particularly in terms of lien enforcement and board governance.
  • Consumers: Vehicle owners will benefit from clearer regulations regarding the retrieval of their property and reduced fees associated with towing services.
  • Law Enforcement: The inclusion of law enforcement representatives on the board aims to ensure that towing practices align with public safety and community standards.

Legislative Timeline

  • Introduced: April 7, 2025
  • Passed: April 16, 2025
  • Act Status: Became Act 932 on April 21, 2025
  • Emergency Clause Adopted: April 10, 2025

Conclusion

HB 2001 represents a significant reform in the towing and recovery sector in Arkansas, aiming to enhance regulatory oversight, protect consumer rights, and streamline operations within the industry. The immediate implementation of these changes reflects the urgency of addressing existing challenges in towing practices.

Compiled from official sources — confirm details with the bill’s official record.

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