House committee substitute to the 1st makes the following changes.
Section 2
Adds a new statute defining the terms commercial motor vehicle, tow operations (defined as the removal and storage of a commercial motor vehicle or commercial motor vehicle combination by a tower provided in response to a request from local law enforcement or State agency without prior consent or authorization of the owner or operator of the commercial motor vehicle) and tower. Makes conforming changes to the numbering of the remaining new statutes in new Part 4 of Article 17 of GS Chapter 143B.
Changes the name of the Commission to the Commercial Motor Vehicle Towing and Recovery Commission (Commission) and removes the stated purpose of the Commission.
Amends the Commission’s powers and duties as follows. Amends powers related to fees to now include determining a range of towing, storage, and related fees for tow operations which are deemed reasonable, using information compiled by the Commission under new GS 143B-1769 and any relevant industry information regarding fees. Adds: (1) creating and administering a non-binding process for fee dispute resolution with the purpose of facilitating communication, understanding, reconciliation, and settlement of fee disputes for extraordinary fees related to tow operations; (2) cooperating, coordinating, and consulting with State agencies and local law enforcement agencies; and (3) receiving referrals from, and making recommendations to, State agencies and local law enforcement agencies related to fee disputes for tow operations according to processes established by the Commission. Removes powers related to disqualification from and reinstatement to the State Highway Patrol’s rotation system.
Removes proposed GS 143B-1768 that concerned rates charged during participation in the State Highway Patrol rotation system and when providing services under a contract with the Department of Transportation (DOT). Instead, enacts new GS 143B-1769, which provides as follows. Requires a tower applicant to submit a form (developed by the State Highway Patrol) that sets out the fees it will charge for towing, storage, and related fees for tow operations, at the time that it submits its application to be included in the State Highway Patrol rotation wrecker list, or any local law enforcement agency wrecker rotation list to conduct tow operations, or to provide services under a contract with the DOT for the removal of vehicle, cargo, or other personal property under GS 20-161(f). Sets out provisions governing the modification of those rates. Requires that the form recipient provide a copy of the tower's rate information and subsequent re-submissions to the Commission. Requires State agencies, local agencies, and the Commission to keep rate information for administrative purposes and not publicly disclose them, unless otherwise required by law.
Amends GS 143B-1716 by adding that the State Highway Patrol is to determine the zone of operation of a private wrecker service participating in the rotation wrecker list and requires that it be listed on the State Highway Patrol website and be updated at least quarterly.
Amends GS 20-161 by adding that new Part 4 of Article 17 of GS Chapter 143B applies to DOT contracts with vendors for tow operations.
Makes new Part 4 and the changes discussed above effective July 1, 2026.
Requires the State Highway Patrol to promulgate rules to effectuate Part 4 and the changes discussed above, to become effective July 1, 2026.
Instead of requiring the State Highway Patrol to publish notice of the requirement of Article 17 of GS Chapter 143B, requires publication of updated wrecker list application requirements and requires development of a form for towing, storage, and related fees for towers by January 1, 2026.
Amends the requirement that $10,000 of funds appropriated to the State Highway Patrol be allocated for the Commission, so that it begins with the 2026-27 fiscal year (was, 2025-26 fiscal year).
Section 3
Makes changes throughout new Article 7C to specify that it applies to commercial motor vehicle tower permits (was, just towing permits). Requires under GS 20-219.36 that a tower engaged in the business of conducting tow operations obtain a commercial motor vehicle tower permit from the Division of Motor Vehicles (DMV); makes conforming changes.
Amends GS 20-219.35 by adding a definition of commercial motor vehicle. Changes the term tow to tow operations and now defines it as the removal and storage of a commercial motor vehicle or commercial motor vehicle combination by a tower; excludes a commercial transaction for transport of a damaged vehicle arranged or authorized by an insurance company and delivered to a salvage pool operator. Amends the definition of tower by specifying that it includes owners and employees operations (was, includes a consensual towing business, private property impound towing business, and tow truck operator).
Further amends GS 20-219.36 by no longer prohibiting the initial and renewal application fees from exceeding the total direct and indirect costs of administering the issuance of towing permits. No longer specifies that when a towing business is sold that the new owner must apply for a new towing permit, but still makes towing permits nontransferable.
Amends GS 20-219.37 by no longer specifying that an application for a towing permit must require information sufficient to confirm compliance with the Article. Amends the criminal record requirements that provide that if the permit applicant is an employee operation of a business engaged in tow operations (was, if the applicant is a tow truck operator), the applicant must have had no felony convictions within the previous five years. Amends the driver's license requirement to require that the applicant have a valid commercial driver's license for the class of motor vehicles conducting tow operations (was, have a valid driver's license). Amends the training requirements to require that the training program be approved by the DMV and be related to conducting tow operations and no longer require that it include additional training for heavy-duty drivers as necessary. No longer requires that applicants who are towing business owners maintain workers' compensation insurance. Amends the citizenship requirements to now require that the applicant owner or employee operator of a business engaged in tow operations be a US citizen or possess evidence of work authorization.
Amends proposed GS 20-219.38 as follows. No longer prohibits issuing or renewing a permit unless the application is complete and all required criteria are met and the applicant demonstrates the ability and intent to comply with the Article and other applicable laws. Amends provisions related to temporary permits to allow the issuance of temporary permits that are valid for 60 days, effective upon submission of an application for initial issuance or renewal of a permit, pending the completion of an application process; makes the temporary permit expire when the permit application is issued or denied. Moves provisions previously found in GS 20-219.39 into GS 20-219.38. Requires a tower to carry its permit (was, proof of registration ) while conducting tow operations.
Adds new GS 20-219.39 requiring a permit holder to promptly return any commercial cargo towed by the tower to the cargo owner or their designee, upon request. Requires the tower, when the trailer contains commercial cargo, to allow the trailer to be exchanged with a similar trailer in working condition that was manufactured within five years of the manufacturing date of the original trailer, or newer, as arranged by the commercial cargo owner and upon verification the released trailer is covered by collision insurance coverage or a rider for towing and remediation insurance.
Makes additional technical and clarifying changes throughout the Article.
Makes the Article effective July 1, 2026.
Amends the publication requirement to now require that the DMV publish notice of the requirements for commercial motor vehicle tower permits as required by new Article 7C on its website by January 1, 2026.
Moves the provision prohibiting the booting of a commercial motor vehicle into new GS 20-219.3A and also prohibits using any other devices to enforce parking. Makes using an immobilization device on a commercial vehicle a Class 2 misdemeanor (was, deemed a misdemeanor). Applies to offenses committed on or after December 1, 2025.
Section 4
Amends the proposed changes to GS 44A-2 as follows. Entitles a person entitled to a lien for towing a commercial motor vehicle to a lien on any trailer attached to the commercial motor vehicle combination at the time of towing (was, on the contents of the motor vehicle, any trailer attached to the vehicle at the time of towing, and the contents of the trailer, including other vehicles and boats). Makes additional conforming and clarifying changes. Removes the provisions related to when there is a dispute of a heavy-duty wrecker rotation tow. Makes the changes to GS 44A-2 effective January 1, 2026.
Bill Summaries: H577 (2025-2026 Session)
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Bill H 577 (2025-2026)Summary date: Jun 11 2025 - View summary
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Bill H 577 (2025-2026)Summary date: Apr 2 2025 - View summary
Enacts Part 4, Article 17, GS Chapter 143B, creating the Towing and Recovery Commission (commission) within the State Highway Patrol (SHP). States the purpose of the commission is to decide disputes arising from fees charges by a towing service for towing and remediation services provided in response to a request from law enforcement or other government entity that use the SHP rotation system. Provides for commission membership, appointment, terms, selection of a vice-chair, meetings, and member expenses. Grants powers and duties to the commission necessary to enforce the Part's provisions, including rulemaking authority, determining the reasonableness of fees charged by a towing service participating in the rotation system, and the disqualification and reinstatement of towing services in the rotation system. Provides for procedures to determine reasonable of fees, disqualification of a towing service, reinstatement, and any appeal of a determination by the commission to be compliant with the APA, GS Chapter 150B. Requires submission of hourly pricing rates by a towing service before participating in the rotation system or providing services under contract with the Department of Transportation (DOT). Conditions effectiveness of rate changes upon submission of rate changes, making changes effective 30 days after submission. Requires the commission maintain the rates and prohibits public disclosure. Charges SHP with determining the zone of operation of a towing service participating in the rotation system. Requires the SHP and the commission to lists the zones of operation on their websites and quarterly update the list.
Directs SHP to publish a notice of the enacted requirements within 30 days of the act passing.
Directs SHP to allocate $10,000 of appropriated recurring funds to pay for administrative costs, stipends, and travel associated with the commission, beginning 2025-26.
Applicable to a tower operating in the State on or after six months from the date the act becomes law, enacts Article 7C, GS Chapter 20, requiring a tower to obtain a towing permit from the Division of Motor Vehicles before operating in the State. Defines tow and tower by statutory cross-reference. Makes the permits valid for two years and non-transferable. Provides for application and renewal fees and makes the tower responsible for required background check costs. Directs DMV to prescribe the form of the permit application. Establishes seven criteria that must be met for a permit to be issued, including no felony convictions within five years if the applicant is a tow truck operator or within ten years if the applicant is a towing business owner. Further details permit issuance and renewal requirements. Makes appeals of permit denials, suspensions, and revocations governed by the APA, GS Chapter 150B. Authorizes DMV to provide temporary registration or authorization effective upon submission of an application until issuance or denial of permanent registration. Requires permitees to report any conviction to DMV within 14 days. Requires permitees to carry proof of registration while operating a tow truck. Makes it a misdemeanor to immobilize a commercial motor vehicle using a device such as a boot. Deems private property impound booting and towing without a valid permit an unfair trade practice under GS Chapter 75.
Directs DMV and SHP to publish notice of the enacted requirements within 30 days of the act passing.
Amends GS 44A-2, which governs liens on personal property, by enacting two new subsections. Expands the lien established in subsection (d) for towing businesses upon motor vehicles for reasonable towing charges. Makes any person entitled to a lien under subsection (d) for towing expenses also entitled to a lien on the contents of the motor vehicle, any trailer attached to the vehicle at the time of towing, and the contents of the trailer, including other vehicles and boats. Excludes personal items such as medication, wallets, eyeglasses, cell phones, and keys, and requires release of these items without charge to the owner or operator of the vehicle or their authorized agent. Requires return of cargo when there is a dispute of a heavy-duty wrecker rotation tow upon verification of required collision insurance coverage or a rider for towing and remediation for commercial motor vehicles operating in the State. Requires the return occur by a trailer swap completed by the tower. Sets requirements for a swapped trailer. Excludes farm vehicles with farm tags from the insurance requirement. Defines "cargo".