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".
Bill Summaries: H577 (2025-2026 Session)
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Bill H 577 (2025-2026)Summary date: Apr 2 2025 - View summary