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Title 27 Transportation

Subtitle 4. Motor Vehicular Traffic

Chapter 50 Penalties And Enforcement

Subchapter 12 - Removal of Unattended or Abandoned Vehicles

27-50-1203. Arkansas Towing and Recovery Board - Creation.

(a) (1) There is hereby created the Arkansas Towing and Recovery Board consisting of nine (9) members appointed by the Governor and confirmed by the Senate, who shall serve terms of three (3) years.

(2) (A) Four (4) members shall be appointed from the towing industry and shall be licensed by the board to engage in nonconsent towing, with one (1) each of the members being a resident of each of the four (4) congressional districts.

(B) Two (2) members who are permitted to engage in the consent-only business shall be appointed from the state at large.

(C) Two (2) members who are not associated with the towing industry shall be appointed from the state at large.

(D) One (1) member shall be appointed from the insurance industry.

(b) The appointed board members shall be residents of the State of Arkansas at the time of appointment and throughout their terms.

(c) (1) The members shall determine by majority vote of the quorum of the board who shall serve as chair.

(2) The chair shall be elected annually from the membership of the board.

(d) (1) The board shall meet at such times and places that the chair deems necessary, but no meetings shall be held outside the State of Arkansas.

(2) Five (5) of the members of the board shall constitute a quorum for the purpose of transacting business.

(3) All actions of the board shall be by a quorum.

(e) (1) The board shall promulgate rules and regulations to carry out the intent of this subchapter and shall regulate the towing industry, including:

(A) Establishing reasonable licensing, insurance, and equipment requirements for any person engaging in towing and related services for safety purposes under this subchapter;

(B) Establishing reasonable tow truck safety requirements for any tow vehicle as defined in this subchapter;

(C) Establishing a procedure to accept and investigate complaints from a consumer who claims that he or she has been overcharged for nonconsent towing, recovery, or storage fees;

(D) Determining and sanctioning excessive or unnecessary non-consent towing fees, recovery, and storage charged to consumers;

(E) Requiring all entities permitted, licensed, or regulated under this subchapter to provide to the board all documents in response to information requests by the board pursuant to the investigation of consumer complaints or board complaints against the permittee or licensee;

(F) Requiring all entities permitted, licensed, or regulated under this subchapter to provide itemized billing for towing or storage fees that explains how the charges were calculated; and

(G) Requiring all entities permitted, licensed, or regulated under this subchapter to maintain a copy of their current maximum rate schedule posted in a conspicuous place and readily accessible to the public.

(2) The promulgation and adoption of rules and regulations shall in all respects be in the manner provided by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(3) After the promulgation and adoption of rules or regulations, any proposed change to add to, amend, repeal, or change any of the rules or regulations shall not have effect until reviewed and approved by the Subcommittee on Administrative Rules and Regulations of the Legislative Council subsequent to the time that the General Assembly next meets in regular session unless a finding exists that imminent peril to the public health, safety, or welfare requires immediate adoption, amendment, or repeal of the rules or regulations.

(f) (1) The board shall have the authority to levy applicable towing business license fees not to exceed one hundred dollars ($100) per license, and the board shall have the authority to levy an applicable tow vehicle safety permit fee not to exceed fifty dollars ($50.00) per tow vehicle safety permit.

(2) Furthermore, the board shall also have the authority to impose late filing fees in an amount not to exceed the original amount of the license fee or safety permit fee.

(g) (1) The board shall have the authority to employ and discharge any personnel as may be necessary to administer and enforce the provisions of this subchapter and the rules and regulations promulgated hereunder.

(2) The board shall employ investigators to investigate consumer complaints related to overcharging for nonconsent towing, recovery, or storage fees, violations of § 27-50-1101, this subchapter, and violations of the rules promulgated by the board under this subchapter.

(h) The board shall have the authority to obtain office space, furniture, stationery, and other proper supplies and conveniences reasonably necessary to carry out the provisions of this subchapter.

(i) Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

(j) The board shall have the authority to establish a maximum amount to be charged by a towing business for each notification to an owner and a lienholder as required by this subchapter.

History. Acts 1989, No. 899, § 9; 1993, No. 1000, § 3; 1997, No. 250, § 246; 1997, No. 392, § 2; 1999, No. 1279, § 2; 2005, No. 1878, § 2; 2007, No. 861, § 2-4; 2007, No. 1053, § 2..

A.C.R.C. Notes. Acts 1993, No. 806, § 3 provided:

“The board is to be reimbursed for meals and lodging, and any other expenses necessary when conducting board business, as well as reimbursed for mileage at the rate allowed for state employees. The board members will receive a per diem at the rate of fifty dollars ($50) for conducting board business.”

Acts 1995, No. 6, § 3, provided:

“BOARD MEMBER EXPENSES. The Board is to be reimbursed for meals and lodging, and any other expenses necessary when conducting board business, as well as being reimbursed for mileage at the rate allowed for state employees. The Board Members will receive per diem at the rate of fifty dollars ($50) for conducting board business.”

Pursuant to § 1-2-207, § 27-50-1203(e)(1)(D) is set out above as amended by Acts 2007, No. 1053, § 2. Acts 2007, No. 861, § 2, also amended § 27-50-1203(e)(1)(D) as follows: “(D) Determining and sanctioning excessive or unnecessary non-consent towing fees or storage fees, or both, charged to consumers;”.

Publisher's Notes. Acts 1993, No. 1000, § 3, provided, in part, that the members serving on the board on the effective date of the act shall continue to serve the remainder of their terms and members appointed thereafter shall be appointed so as to phase in the requirements of the act as rapidly as practical.

Acts 1993, No. 1000, § 3, also provided that after the board's initial promulgation and adoption of rules and regulations, unless a finding exists that imminent peril to the public health, safety, or welfare requires immediate adoption, amendment or repeal of any such rule or regulation, any subsequent proposed amendments or changes to the initial rules and regulations shall not have effect until after such time the Arkansas General Assembly next meets in regular session.

Amendments. The 2005 amendment rewrote (b); added present (c) and (d) and redesignated the remaining subsections accordingly; added present (e)(1)(C)-(F) and (g)(2); deleted former (h)(2) and made related changes.

The 2007 amendment, in (e)(1)(A), substituted “equipment” for “safety equipment,” deleted “nonconsent” preceding “towing,” and inserted “for safety purposes”; in (e)(1)(C) and (g)(2), deleted “consent or” and inserted “recovery”; inserted “recovery, and storage” in (e)(1)(D); added (e)(1)(E) and redesignated the remaining subsections accordingly; substituted “fifty dollars ($50.00)” for “twenty-five dollars ($25.00)” in (f)(1); in (g)(2), substituted “investigators” for “an investigator” and inserted “§ 27-50-1101”; and made related changes.

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