Akansas Governor Signs Bill to Ban ‘Accident Taxes’

Arkansas Governor Mike Beebe has signed legislation that bans local governments from billing motorists for accident response services performed by police departments, according to the Property Casualty Insurers Association of America (PCI).

HB 1895, sponsored by Rep. Allen Kerr (R-Little Rock) prohibits local governments from billing motorists for police department response services at the scene of a traffic accident, called an “accident tax.” The bill was signed by Gov. Beebe on April 6, 2009 and is now Arkansas Act 973.

The legislation adds an additional section to Arkansas Code Title 27, Chapter 53, Subchapter 3 to prohibit a local government from levying the accident response fee on the driver or owner of a motor vehicle, the insurance provider or any other person for the response or investigation by a law enforcement agency at the scene of a motor vehicle accident. However, this will not affect ambulance services.

Source: PCI, www.pciaa.net