North Carolina 2025-2026 Regular Session

North Carolina House Bill H577 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 577
	3	+	H D
	4	+	HOUSE BILL DRH10273-MWa-26
	5	+
5	6
6	7
7	8		Short Title: Protect Towers and Truckers Act. (Public)
8		-	Sponsors: Representatives McNeely, Branson, and Jeffers (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Appropriations, if favorable, Finance, if favorable, Rules, Calendar, and
11		-	Operations of the House
12		-	April 1, 2025
13		-	H577 -v-1
	9	+	Sponsors: Representative McNeely.
	10	+	Referred to:
	11	+
	12	+	DRH10273 -MWa-26
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO ENACT THE PROTECT OUR NORTH CAROLINA TOWERS AND 2
16	15		TRUCKERS ACT. 3
17	16		The General Assembly of North Carolina enacts: 4
18	17		5
19	18		TITLE 6
20	19		SECTION 1. This act shall be known as the "Protect Our North Carolina Towers 7
21	20		and Truckers Act." 8
22	21		9
23	22		CREATION OF THE TOWING AND RECOVERY COMMISSION 10
24	23		SECTION 2.1. Article 17 of Chapter 143B of the General Statutes is amended by 11
25	24		adding a new Part to read: 12
26	25		"Part 4. Towing and Recovery Commission. 13
27	26		"§ 143B-1765. Creation and purpose. 14
28	27		(a) There is created the Towing and Recovery Commission within the State Highway 15
29	28		Patrol. 16
30	29		(b) The purpose of the commission is to decide disputes arising from fees charged by a 17
31	30		towing service for towing and remediation services provided in response to a request from law 18
32	31		enforcement or other government entity that uses the State Highway Patrol rotation system. 19
33	32		"§ 143B-1766. Commission membership and meetings. 20
34	33		(a) The commission shall be comprised of the following members: 21
35	34		(1) One voting member that is a State Highway Patrol Major appointed by the 22
36	35		Commander. This member shall be the chair of the commission. 23
37	36		(2) One voting member appointed by the North Carolina Association of Chiefs of 24
38	37		Police. 25
39	38		(3) One voting member and one alternate member appointed by the North 26
40	39		Carolina Trucking Association. The alternate member may serve as the voting 27
41	40		member in the absence of the appointed voting member. 28
42	41		(4) One voting member and one alternate member appointed by the Towing and 29
43	42		Recovery Professionals of North Carolina. The alternate member may serve 30
44	43		as the voting member in the absence of the appointed voting member. 31
45	44		(5) One voting member with experience in towing recovery and repair appointed 32
46		-	by the Commissioner of the Department of Insurance. 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 577-First Edition
48		-	(6) One nonvoting member appointed by the Secretary of the Department of 1
49		-	Public Safety from the Office of Legal Counsel. 2
50		-	(b) Members shall be appointed for a period of two years with terms expiring on January 3
51		-	1 of the year in which the term expires. Members may serve consecutive terms. The appointing 4
52		-	authority may appoint a member to serve out the unexpired term of any member. 5
53		-	(c) The commission shall select a vice-chair from the voting members of the commission. 6
54		-	The commission shall meet at least quarterly at times and places the commission may designate 7
55		-	and at such other times and places on the call of the chair or, in the absence of the chair, by the 8
56		-	vice-chair. A quorum will be a majority of the voting members present. Members shall receive 9
57		-	no compensation for serving on the commission, however, members may receive travel and 10
58		-	subsistence expenses from funds made available to the commission. 11
59		-	"§ 143B-1767. Commission powers and duties. 12
60		-	(a) The commission shall have the powers and duties necessary to enforce the provisions 13
61		-	of this Part. These powers shall include all of the following: 14
62		-	(1) Adoption of rules in accordance with Chapter 150B of the General Statutes. 15
63		-	(2) Determining the reasonableness of fees charged by a towing service that 16
64		-	participates in the State Highway Patrol rotation system. 17
65		-	(3) Disqualification of a towing service from participating in the State Highway 18
66		-	Patrol rotation system. 19
67		-	(4) Reinstatement of a towing service in the State Highway Patrol rotation system. 20
68		-	(b) The procedure for determining the reasonableness of fees, for disqualification of a 21
69		-	towing service, reinstatement, and for any appeal of a determination by the commission shall be 22
70		-	in accordance with Chapter 150B of the General Statutes. 23
71		-	"§ 143B-1768. Heavy-duty rates. 24
72		-	(a) Before a towing service may participate in the State Highway Patrol rotation system 25
73		-	or provide services under a contract with the Department of Transportation, the towing service 26
74		-	must submit to the commission the hourly pricing rates charged by the towing service. Any 27
75		-	modification of the rates charged by a towing service shall only be effective 30 days after 28
76		-	submission of the rate change to the commission. The commission shall maintain these rates for 29
77		-	administrative purposes and will not publicly disclose them. 30
78		-	(b) The zone of operation of a towing service participating in the rotation system shall be 31
79		-	determined by the State Highway Patrol and listed on the websites of the State Highway Patrol 32
80		-	and the commission. This list shall be updated at least quarterly." 33
81		-	SECTION 2.2. The State Highway Patrol shall publish notice of the requirements 34
82		-	set forth in Article 17 of Chapter 143B of the General Statutes, as enacted by this section, within 35
83		-	30 days of the passage of this bill. 36
84		-	SECTION 2.3. Of the funds appropriated to the State Highway Patrol beginning 37
85		-	with the 2025-2026 fiscal year, the sum of ten thousand dollars ($10,000) in recurring funds shall 38
86		-	be allocated to pay for administrative costs, stipends, and travel associated with the commission. 39
87		-	40
88		-	TOWING PERMITS AND REGULATIONS 41
89		-	SECTION 3.1. Chapter 20 of the General Statutes is amended by adding a new 42
90		-	Article to read: 43
91		-	"Article 7C. 44
92		-	"Tower Permits and Regulation. 45
93		-	"§ 20-219.35. Definitions. 46
94		-	The following definitions apply in this Article: 47
95		-	(1) Reserved for future codification purposes. 48
96		-	(2) Reserved for future codification purposes. 49
97		-	(3) Tow. – As defined in G.S. 20‑219.9. 50 General Assembly Of North Carolina Session 2025
98		-	House Bill 577-First Edition Page 3
99		-	(4) Tower. – As defined in G.S. 20‑219.9, including a consensual towing 1
100		-	business, private property impound towing business, and tow truck operator. 2
101		-	"§ 20-219.36. Towing permit required. 3
102		-	(a) A tower shall obtain a towing permit from the Division of Motor Vehicles before 4
103		-	operating in the State. 5
104		-	(b) A towing permit issued under this Article shall be valid for a period of two years 6
105		-	unless sooner revoked or suspended by the Division. 7
106		-	(c) A tower shall pay to the Division a nonrefundable fee for the initial application and 8
107		-	for the renewal application of a towing permit. The fee shall not exceed the total direct and 9
108		-	indirect costs of administering the issuance of towing permits under this Article. 10
109		-	(d) A tower shall pay the costs associated with any background checks required by this 11
110		-	Article for a towing permit. 12
111		-	(e) A towing permit issued under this Article is nontransferable. If a towing business is 13
112		-	sold, the new owner must apply for a new towing permit. 14
113		-	"§ 20-219.37. Application requirements. 15
114		-	(a) The Division shall prescribe the form of the application for a towing permit under this 16
115		-	Article. The application must require information sufficient to confirm compliance with this 17
116		-	Article. 18
117		-	(b) The Division shall not issue a towing permit unless the applicant provides proof of 19
118		-	meeting all of the following requirements: 20
119		-	(1) Under the current felony classifications set forth by the State Highway Patrol, 21
120		-	a background check shows, if the applicant is a tow truck operator, the 22
121		-	applicant has had no felony convictions within the previous five years, and if 23
122		-	the applicant is a towing business owner, the applicant has had no felony 24
123		-	convictions within the previous 10 years. 25
124		-	(2) The applicant has a valid drivers license. 26
125		-	(3) The applicant has a valid storage yard that complies with the minimum space 27
126		-	requirements of the city, county, and State zoning regulations with proper 28
127		-	zoning permits. 29
128		-	(4) If the applicant is a towing business owner, the applicant carries the minimum 30
129		-	insurance requirements required by the State for on-hook liability and garage 31
130		-	keepers insurance. 32
131		-	(5) The applicant has completed an accredited training program, including 33
132		-	additional training for heavy-duty drivers as necessary. This training must 34
133		-	offer continuing education credits. 35
134		-	(6) If the applicant is a towing business owner, the applicant maintains workers 36
135		-	compensation insurance in compliance with State law. 37
136		-	(7) If the applicant is a towing business owner, the owner is a United States 38
137		-	citizen, or has a valid visa or proper immigration documentation. 39
138		-	"§ 20-219.38. Permit issuance and renewal. 40
139		-	(a) The Division shall not issue or renew a permit unless: 41
140		-	(1) The application is complete and all required criteria are met. 42
141		-	(2) The applicant demonstrates the ability and intent to comply with this Article 43
142		-	and all other applicable laws. 44
143		-	(b) An appeal of a towing permit denied, suspended, or revoked by the Division shall be 45
144		-	governed by the provisions of Chapter 150B of the General Statutes. 46
145		-	(c) The DMV may provide temporary registration or authorization effective upon 47
146		-	submission of an application. Temporary authorization expires upon issuance or denial of 48
147		-	permanent registration. 49
148		-	"§ 20-219.39. Permit requirements. 50 General Assembly Of North Carolina Session 2025
149		-	Page 4 House Bill 577-First Edition
150		-	(a) A person issued a towing permit in accordance with this Article shall report to the 1
151		-	Division within 14 days of any felony or misdemeanor conviction. 2
152		-	(b) A tow truck operator issued a towing permit in accordance with this Article shall carry 3
153		-	proof of registration while operating a tow truck. 4
154		-	"§ 20-219.40. Commercial booting. 5
155		-	A commercial motor vehicle shall not be immobilized using a device such as a boot. Using 6
156		-	an immobilization device on a commercial vehicle will be deemed a misdemeanor. 7
157		-	"§ 20-219.41. Unlawful towing practices. 8
158		-	Engaging in private property impound booting or towing without a valid permit constitutes 9
159		-	an unfair trade practice under G.S. 75-1.1." 10
160		-	SECTION 3.2. The Division of Motor Vehicles and the State Highway Patrol shall 11
161		-	publish notice of the requirements set forth in Article 7C of Chapter 20 of the General Statutes, 12
162		-	as enacted by this section, within 30 days of the passage of this bill. 13
163		-	14
164		-	TOWERS AND POSSESSORY LIENS ON VEHICLES, TRAILERS, AND CONTENTS 15
165		-	SECTION 4. G.S. 44A-2 reads as rewritten: 16
166		-	"§ 44A-2. Persons entitled to lien on personal property. 17
167		-	… 18
168		-	(d) Any person who repairs, services, tows, or stores motor vehicles in the ordinary 19
169		-	course of the person's business pursuant to an express or implied contract with an owner or legal 20
170		-	possessor of the motor vehicle, except for a motor vehicle seized pursuant to G.S. 20-28.3, has a 21
171		-	lien upon the motor vehicle for reasonable charges for such repairs, servicing, towing, storing, or 22
172		-	for the rental of one or more substitute vehicles provided during the repair, servicing, or storage. 23
173		-	This lien shall have priority over perfected and unperfected security interests. Payment for towing 24
174		-	and storing a motor vehicle seized pursuant to G.S. 20-28.3 shall be as provided for in 25
175		-	G.S. 20-28.2 through G.S. 20-28.5. 26
176		-	(d1) Any person who is entitled to a lien under subsection (d) of this section for towing a 27
177		-	vehicle is also entitled to a lien on the contents of the motor vehicle, any trailer attached to the 28
178		-	vehicle at the time of towing, and the contents of the trailer, including other vehicles and boats. 29
179		-	A lien under this section shall not extend to personal items, including medications, wallets, purses 30
180		-	and their contents, prescription eyeglasses, prosthetics, cell phones, and keys. These items shall 31
181		-	be released without charge to the owner or operator of the towed vehicle or an authorized 32
182		-	representative of the owner or operator. 33
183		-	(d2) Notwithstanding subsection (d1) of this section, in cases of a dispute of a heavy-duty 34
184		-	wrecker rotation tow, cargo shall be returned upon verification of required collision insurance 35
185		-	coverage or a rider for towing and remediation for commercial motor vehicles operating in North 36
186		-	Carolina. This shall occur via a trailer swap completed by the tower. The swapped trailer must 37
187		-	be of equal or better condition than the original towed trailer and owned, leased, or operated by 38
188		-	the same company. The insurance requirement does not apply to farm vehicles with farm tags. 39
189		-	For purposes of this subsection, "cargo" is freight that is subject to a bill of lading. 40
190		-	…." 41
191		-	42
192		-	EFFECTIVE DATE 43
193		-	SECTION 5. This act is effective when it becomes law. Section 3.1 of this act applies 44
194		-	to a tower operating in this State on or after six months from the effective date of this act. 45
	45	+	by the Commissioner of the Department of Insurance. 33
	46	+	(6) One nonvoting member appointed by the Secretary of the Department of 34
	47	+	Public Safety from the Office of Legal Counsel. 35
	48	+	H.B. 577
	49	+	Mar 31, 2025
	50	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	51	+	Page 2 DRH10273-MWa-26
	52	+	(b) Members shall be appointed for a period of two years with terms expiring on January 1
	53	+	1 of the year in which the term expires. Members may serve consecutive terms. The appointing 2
	54	+	authority may appoint a member to serve out the unexpired term of any member. 3
	55	+	(c) The commission shall select a vice-chair from the voting members of the commission. 4
	56	+	The commission shall meet at least quarterly at times and places the commission may designate 5
	57	+	and at such other times and places on the call of the chair or, in the absence of the chair, by the 6
	58	+	vice-chair. A quorum will be a majority of the voting members present. Members shall receive 7
	59	+	no compensation for serving on the commission, however, members may receive travel and 8
	60	+	subsistence expenses from funds made available to the commission. 9
	61	+	"§ 143B-1767. Commission powers and duties. 10
	62	+	(a) The commission shall have the powers and duties necessary to enforce the provisions 11
	63	+	of this Part. These powers shall include all of the following: 12
	64	+	(1) Adoption of rules in accordance with Chapter 150B of the General Statutes. 13
	65	+	(2) Determining the reasonableness of fees charged by a towing service that 14
	66	+	participates in the State Highway Patrol rotation system. 15
	67	+	(3) Disqualification of a towing service from participating in the State Highway 16
	68	+	Patrol rotation system. 17
	69	+	(4) Reinstatement of a towing service in the State Highway Patrol rotation system. 18
	70	+	(b) The procedure for determining the reasonableness of fees, for disqualification of a 19
	71	+	towing service, reinstatement, and for any appeal of a determination by the commission shall be 20
	72	+	in accordance with Chapter 150B of the General Statutes. 21
	73	+	"§ 143B-1768. Heavy-duty rates. 22
	74	+	(a) Before a towing service may participate in the State Highway Patrol rotation system 23
	75	+	or provide services under a contract with the Department of Transportation, the towing service 24
	76	+	must submit to the commission the hourly pricing rates charged by the towing service. Any 25
	77	+	modification of the rates charged by a towing service shall only be effective 30 days after 26
	78	+	submission of the rate change to the commission. The commission shall maintain these rates for 27
	79	+	administrative purposes and will not publicly disclose them. 28
	80	+	(b) The zone of operation of a towing service participating in the rotation system shall be 29
	81	+	determined by the State Highway Patrol and listed on the websites of the State Highway Patrol 30
	82	+	and the commission. This list shall be updated at least quarterly." 31
	83	+	SECTION 2.2. The State Highway Patrol shall publish notice of the requirements 32
	84	+	set forth in Article 17 of Chapter 143B of the General Statutes, as enacted by this section, within 33
	85	+	30 days of the passage of this bill. 34
	86	+	SECTION 2.3. Of the funds appropriated to the State Highway Patrol beginning 35
	87	+	with the 2025-2026 fiscal year, the sum of ten thousand dollars ($10,000) in recurring funds shall 36
	88	+	be allocated to pay for administrative costs, stipends, and travel associated with the commission. 37
	89	+	38
	90	+	TOWING PERMITS AND REGULATIONS 39
	91	+	SECTION 3.1. Chapter 20 of the General Statutes is amended by adding a new 40
	92	+	Article to read: 41
	93	+	"Article 7C. 42
	94	+	"Tower Permits and Regulation. 43
	95	+	"§ 20-219.35. Definitions. 44
	96	+	The following definitions apply in this Article: 45
	97	+	(1) Reserved for future codification purposes. 46
	98	+	(2) Reserved for future codification purposes. 47
	99	+	(3) Tow. – As defined in G.S. 20‑219.9. 48
	100	+	(4) Tower. – As defined in G.S. 20‑219.9, including a consensual towing 49
	101	+	business, private property impound towing business, and tow truck operator. 50
	102	+	"§ 20-219.36. Towing permit required. 51 General Assembly Of North Carolina Session 2025
	103	+	DRH10273-MWa-26 Page 3
	104	+	(a) A tower shall obtain a towing permit from the Division of Motor Vehicles before 1
	105	+	operating in the State. 2
	106	+	(b) A towing permit issued under this Article shall be valid for a period of two years 3
	107	+	unless sooner revoked or suspended by the Division. 4
	108	+	(c) A tower shall pay to the Division a nonrefundable fee for the initial application and 5
	109	+	for the renewal application of a towing permit. The fee shall not exceed the total direct and 6
	110	+	indirect costs of administering the issuance of towing permits under this Article. 7
	111	+	(d) A tower shall pay the costs associated with any background checks required by this 8
	112	+	Article for a towing permit. 9
	113	+	(e) A towing permit issued under this Article is nontransferable. If a towing business is 10
	114	+	sold, the new owner must apply for a new towing permit. 11
	115	+	"§ 20-219.37. Application requirements. 12
	116	+	(a) The Division shall prescribe the form of the application for a towing permit under this 13
	117	+	Article. The application must require information sufficient to confirm compliance with this 14
	118	+	Article. 15
	119	+	(b) The Division shall not issue a towing permit unless the applicant provides proof of 16
	120	+	meeting all of the following requirements: 17
	121	+	(1) Under the current felony classifications set forth by the State Highway Patrol, 18
	122	+	a background check shows, if the applicant is a tow truck operator, the 19
	123	+	applicant has had no felony convictions within the previous five years, and if 20
	124	+	the applicant is a towing business owner, the applicant has had no felony 21
	125	+	convictions within the previous 10 years. 22
	126	+	(2) The applicant has a valid drivers license. 23
	127	+	(3) The applicant has a valid storage yard that complies with the minimum space 24
	128	+	requirements of the city, county, and State zoning regulations with proper 25
	129	+	zoning permits. 26
	130	+	(4) If the applicant is a towing business owner, the applicant carries the minimum 27
	131	+	insurance requirements required by the State for on-hook liability and garage 28
	132	+	keepers insurance. 29
	133	+	(5) The applicant has completed an accredited training program, including 30
	134	+	additional training for heavy-duty drivers as necessary. This training must 31
	135	+	offer continuing education credits. 32
	136	+	(6) If the applicant is a towing business owner, the applicant maintains workers 33
	137	+	compensation insurance in compliance with State law. 34
	138	+	(7) If the applicant is a towing business owner, the owner is a United States 35
	139	+	citizen, or has a valid visa or proper immigration documentation. 36
	140	+	"§ 20-219.38. Permit issuance and renewal. 37
	141	+	(a) The Division shall not issue or renew a permit unless: 38
	142	+	(1) The application is complete and all required criteria are met. 39
	143	+	(2) The applicant demonstrates the ability and intent to comply with this Article 40
	144	+	and all other applicable laws. 41
	145	+	(b) An appeal of a towing permit denied, suspended, or revoked by the Division shall be 42
	146	+	governed by the provisions of Chapter 150B of the General Statutes. 43
	147	+	(c) The DMV may provide temporary registration or authorization effective upon 44
	148	+	submission of an application. Temporary authorization expires upon issuance or denial of 45
	149	+	permanent registration. 46
	150	+	"§ 20-219.39. Permit requirements. 47
	151	+	(a) A person issued a towing permit in accordance with this Article shall report to the 48
	152	+	Division within 14 days of any felony or misdemeanor conviction. 49
	153	+	(b) A tow truck operator issued a towing permit in accordance with this Article shall carry 50
	154	+	proof of registration while operating a tow truck. 51 General Assembly Of North Carolina Session 2025
	155	+	Page 4 DRH10273-MWa-26
	156	+	"§ 20-219.40. Commercial booting. 1
	157	+	A commercial motor vehicle shall not be immobilized using a device such as a boot. Using 2
	158	+	an immobilization device on a commercial vehicle will be deemed a misdemeanor. 3
	159	+	"§ 20-219.41. Unlawful towing practices. 4
	160	+	Engaging in private property impound booting or towing without a valid permit constitutes 5
	161	+	an unfair trade practice under G.S. 75-1.1." 6
	162	+	SECTION 3.2. The Division of Motor Vehicles and the State Highway Patrol shall 7
	163	+	publish notice of the requirements set forth in Article 7C of Chapter 20 of the General Statutes, 8
	164	+	as enacted by this section, within 30 days of the passage of this bill. 9
	165	+	10
	166	+	TOWERS AND POSSESSORY LIENS ON VEHICLES, TRAILERS, AND CONTENTS 11
	167	+	SECTION 4. G.S. 44A-2 reads as rewritten: 12
	168	+	"§ 44A-2. Persons entitled to lien on personal property. 13
	169	+	… 14
	170	+	(d) Any person who repairs, services, tows, or stores motor vehicles in the ordinary 15
	171	+	course of the person's business pursuant to an express or implied contract with an owner or legal 16
	172	+	possessor of the motor vehicle, except for a motor vehicle seized pursuant to G.S. 20-28.3, has a 17
	173	+	lien upon the motor vehicle for reasonable charges for such repairs, servicing, towing, storing, or 18
	174	+	for the rental of one or more substitute vehicles provided during the repair, servicing, or storage. 19
	175	+	This lien shall have priority over perfected and unperfected security interests. Payment for towing 20
	176	+	and storing a motor vehicle seized pursuant to G.S. 20-28.3 shall be as provided for in 21
	177	+	G.S. 20-28.2 through G.S. 20-28.5. 22
	178	+	(d1) Any person who is entitled to a lien under subsection (d) of this section for towing a 23
	179	+	vehicle is also entitled to a lien on the contents of the motor vehicle, any trailer attached to the 24
	180	+	vehicle at the time of towing, and the contents of the trailer, including other vehicles and boats. 25
	181	+	A lien under this section shall not extend to personal items, including medications, wallets, purses 26
	182	+	and their contents, prescription eyeglasses, prosthetics, cell phones, and keys. These items shall 27
	183	+	be released without charge to the owner or operator of the towed vehicle or an authorized 28
	184	+	representative of the owner or operator. 29
	185	+	(d2) Notwithstanding subsection (d1) of this section, in cases of a dispute of a heavy-duty 30
	186	+	wrecker rotation tow, cargo shall be returned upon verification of required collision insurance 31
	187	+	coverage or a rider for towing and remediation for commercial motor vehicles operating in North 32
	188	+	Carolina. This shall occur via a trailer swap completed by the tower. The swapped trailer must 33
	189	+	be of equal or better condition than the original towed trailer and owned, leased, or operated by 34
	190	+	the same company. The insurance requirement does not apply to farm vehicles with farm tags. 35
	191	+	For purposes of this subsection, "cargo" is freight that is subject to a bill of lading. 36
	192	+	…." 37
	193	+	38
	194	+	EFFECTIVE DATE 39
	195	+	SECTION 5. This act is effective when it becomes law. Section 3.1 of this act applies 40
	196	+	to a tower operating in this State on or after six months from the effective date of this act. 41