HB 577 — Protect Towers and Truckers Act.

(3)(4) CreatingReinstatementofatowingserviceintheStateHighwayPatrolrotationsystem. and administering a non-binding process for fee dispute resolution with the purpose of facilitatingcommunication, understanding, reconciliation, and settlement of fee disputes for extraordinaryfees related to tow operations.

(4)(b) Cooperating,The coordinating,procedure andfor consultingdetermining withthe Statereasonableness agenciesof fees, for disqualification of a towing service, reinstatement, and localfor lawany enforcementappeal agenciesof pursuanta todetermination thisby Article.the commission shall be in accordance with Chapter 150B of the General Statutes.

(5)"§ Receiving143B-1768. referrals from, and making recommendations to, State agencies and local law enforcement agencies related to fee disputes for tow operations pursuant to processes established by the Commission.

"§Heavy-duty 143B-1769.rates.

Commercial(a) motorBefore vehiclea towtowing operationservice fees.may participate in the State Highway Patrol rotation system or provide services under a contract with the Department of Transportation, the towing service must submit to the commission the hourly pricing rates charged by the towing service.

(a)Any Withmodification anof applicationthe forrates inclusioncharged onby thea Statetowing Highwayservice Patrolshall rotationonly wreckerbe list,effective established30 underdays G.S.after submission of the rate change to the commission.

143B-1716,The orcommission anyshall localmaintain lawthese enforcementrates agency wrecker rotation list to conduct tow operations, or to provide services under a contract with the Department of Transportation for theadministrative removalpurposes ofand vehicle,will cargo,not orpublicly otherdisclose personalthem. property pursuant to G.S.

20-161(f),(b) theThe towerzone applicantof mustoperation submitof a form,towing developedservice byparticipating in the Staterotation Highwaysystem Patrol,shall outliningbe towing,determined storage,by andthe relatedState feesHighway Patrol and rateslisted chargedon bythe websites of the towerState forHighway towPatrol operations.and the commission.

AnyThis modificationlist of the rates charged by a tower which are different from that submitted shall only be effectiveupdated 30at daysleast afterquarterly." resubmissionSECTION of2.2. the form to the State agency or local law enforcement agency wrecker rotation list administrator.

The CommissionState mayHighway requestPatrol additionalshall supplementalpublish informationnotice fromof athe towerrequirements applicant.set forth in Article 17 of Chapter 143B of the General Statutes, as enacted by this section, within 30 days of the passage of this bill.

(b)SECTION The2.3. State agency or local law enforcement agency in receipt of the form required by this section shall forward a copy of the tower's rate information and subsequent resubmissions, as required by subsection (a) of this section, to the Commission.

PageOf 2the Housefunds Billappropriated 577-Secondto Editionthe GeneralState AssemblyHighway OfPatrol Northbeginning Carolinawith Sessionthe 20252025-2026 (c)fiscal Stateyear, agencies, local agencies, and the Commissionsum shallof maintainten ratethousand informationdollars for($10,000) administrativein purposesrecurring andfunds willshall notbe publiclyallocated discloseto them,pay exceptfor asadministrative otherwisecosts, requiredstipends, byand law."travel SECTIONassociated 2.1.(b)with G.S.the commission.

143B-1716TOWING readsPERMITS asAND rewritten:REGULATIONS SECTION 3.1.

"§Chapter 143B-1716.20 of the General Statutes is amended by adding a new Article to read:

Duties of Highway Patrol.

The State Highway Patrol shall be subject to such orders, rules and regulations as may be adopted by the Commander, with the approval of the Governor, and shall regularly patrol the highways of the State and enforce all laws and regulations respecting travel and the use of vehicles upon the highways of the State and all laws for the protection of the highways of the State.

To this end, the members of the Patrol are given the power and authority of peace officers for the service of any warrant or other process issuing from any of the courts of the State having criminal jurisdiction, and are likewise authorized to arrest without warrant any person who, in the presence of said officers, is engaged in the violation of any of the laws of the State regulating travel and the use of vehicles upon the highways, or of laws with respect to the protection of the highways, and theyshall havejurisdictionanywherewithin theState,irrespectiveofcountylines.

The State Highway Patrol shall enforce the provisions of G.S.

14-399.

The State Highway Patrol shall have full power and authority to perform such additional duties as peace officers as may from time to time be directed by the Governor, and such officers may at any time and without special authority, either upon their own motion or at the request of any sheriff or local police authority, arrest persons accused of highway robbery, bank robbery, murder, or other crimes of violence.

The Commander shall direct the officers and members of the State Highway Patrol in the performance of such other duties as may be required for the enforcement of the motor vehicle laws of the State.

Members of the State Highway Patrol, in addition to the duties, power and authority hereinbefore given, shall have the authority throughout the State of North Carolina of any police officer in respect to making arrests for any crimes committed in their presence and shall have authority to make arrests for any crime committed on any highway.

Regardless of territorial jurisdiction, any member of the State Highway Patrol who initiates an investigation of an accident or collision may not relinquish responsibility for completing the investigation, or for filing criminal charges as appropriate, without clear assurance that another law-enforcement officer or agency has fullyundertaken responsibility, and in such cases he shall render reasonable assistance to the succeeding officer or agency if requested.

The State Highway Patrol recognizes the need to utilize private wrecker services to remove vehicles from public roadways as part of its public safety responsibility.

In order to assure that this public safety responsibility is accomplished, the Troop Commander shall include on the Highway Patrol's rotation wrecker list only those wrecker services which agree in writing to impose reasonable charges for work performed and present one bill to the owner or operator of any towed vehicle.

Towing, storage, and related fees charged may not be greater than fees charged for the same service for nonrotation calls that provide the same service, labor, and conditions.

The zone of operation of a private wrecker service participating in the rotation wreckerlist shall bedetermined bytheStateHighwayPatrol and listed on itswebsiteand updated at least quarterly." SECTION 2.1.(c) G.S.

20-161 reads as rewritten:

"§ 20-161.

Stopping on highway prohibited;

warning signals;

removal of vehicles from public highway.

(a) No person shall park or leave standing any vehicle, whether attended or unattended, upon the main-traveled portion of any highway or highway bridge with the speed limit posted less than 45 miles per hour unless the vehicle is disabled to such an extent that it is impossible to avoid stopping and temporarily leaving the vehicle upon the paved or main traveled portion of the highway or highway bridge.

This subsection shall not apply to a solid waste vehicle stopped House Bill 577-Second Edition Page 3 General Assembly Of North Carolina Session 2025 on ahighwaywhile engaged in collectinggarbage as defined in G.S.

20-118(c)(5)g.

or recyclable material as defined in G.S.

130A-290(a)(26).

(a1) No person shall park or leave standing any vehicle, whether attended or unattended, upon the paved or main-traveled portion of any highway or highway bridge with the speed limit posted 45 miles per hour or greater unless the vehicle is disabled to such an extent that it is impossibletoavoidstoppingandtemporarilyleavingthevehicleuponthepavedormain-traveled portion ofthehighwayor highwaybridge.This subsectionshall not applyto asolid wastevehicle stopped on a highway while engaged in collecting garbage as defined in G.S.

20-118(c)(5)g.

or recyclable material as defined in G.S.

130A-290(a)(26).

(b) No person shall park or leave standing any vehicle upon the shoulder of a public highway unless the vehicle can be clearly seen by approaching drivers from a distance of 200 feet in both directions and does not obstruct the normal movement of traffic.

(c) The operator of any truck, truck tractor, trailer or semitrailer which is disabled upon any portion of the highway shall display warning devices of a type and in a manner as required under the rules and regulations of the United States Department of Transportation as adopted by the Division of Motor Vehicles.

Such warning devices shall be displayed as long as the vehicle is disabled.

(d) The owner of any vehicle parked or left standing in violation of law shall be deemed to have appointed any investigating law-enforcement officer his agent:

(1) For the purpose of removing the vehicle to the shoulder of the highway or to some other suitable place;

and (2) For the purpose of arranging for the transportation and safe storage of any vehicle which is interfering with the regular flow of traffic or which otherwise constitutes a hazard, in which case the officer shall be deemed a legal possessor of the vehicle within the meaning of G.S.

44A-2(d).

(e) When any vehicle is parked or left standing upon the right-of-way of a public highway, including rest areas, for a period of 24 hours or more, the owner shall be deemed to have appointed any investigating law-enforcement officer his agent for the purpose of arranging for the transportation and safe storage of such vehicle and such investigating law-enforcement officer shall be deemed a legal possessor of the motor vehicle within the meaning of that term as it appears in G.S.

44A-2(d).

(f) An investigating law enforcement officer, with the concurrence of the Department of Transportation, or the Department of Transportation, with the concurrence of an investigating law enforcement officer, may immediately remove or cause to be removed from the State highway system any wrecked, abandoned, disabled, unattended, burned, or partially dismantled vehicle, cargo, or other personal property interfering with the regular flow of traffic or which otherwise constitutes a hazard.

In the event of a motor vehicle crash involving serious personal injuryordeath, no removal shall occur until theinvestigatinglaw enforcement officerdetermines that adequate information has been obtained for preparation of a crash report.

No state or local law enforcement officer, Department of Transportation employee, or person or firm contracting or assisting in the removal or disposition of any such vehicle, cargo, or other personal property shall be held criminally or civilly liable for any damage or economic injury related to carrying out orenforcingthe provisions ofthis section.

Part4ofArticle17 ofChapter 143Bofthe General Statutes applies to Department of Transportation contracts with vendors for tow operations as defined in G.S.

143B-1765.

(g) The owner shall be liable for any costs incurred in the removal, storage, and subsequent disposition of a vehicle, cargo, or other personal property under the authority of this section." SECTION 2.1.(d) This section becomes effective July 1, 2026.

SECTION 2.2.

The State Highway Patrol shall promulgate rules to effectuate the provisions of Section 2.1 of this act, to become effective July 1, 2026.

Page 4 House Bill 577-Second Edition General Assembly Of North Carolina Session 2025 SECTION 2.3.

The State Highway Patrol shall publish updated wrecker list application requirements, and develop a form for towing, storage, and related fees for towers, as required by G.S.

143B-1769, as enacted by Section 2.1 of this act, by January 1, 2026.

SECTION 2.4.

Of funds appropriated to the State Highway Patrol beginning with the 2026-2027 fiscal year, the sum of ten thousand dollars ($10,000) in recurring funds shall be allocated for administrative costs, stipends, and travel associated with the Commercial Motor Vehicle Towing and Recovery Commission, as created by Section 2.1 of this act.

9 COMMERCIAL MOTOR VEHICLE TOWER PERMITS AND REGULATIONS SECTION 3.1.(a) Chapter 20 of the General Statutes is amended by adding a new Article to read:

"Commercial"Tower Motor Vehicle Tower Permits and Regulation.

(3) CommercialTow. motor vehicle.

20-4.01(3d)a.20‑219.9.

andPage G.S.2 House Bill 577-First Edition General Assembly Of North Carolina Session 2025 (4) Tower.

20-4.01(3d)b.

(4) Tow operations.

– The removal and storage of a commercial motor vehicle or commercial motor vehicle combination by a tower.

Tow operations does not include a commercial transaction for transport of a damaged vehicle arranged or authorized by an insurance company and delivered to a salvage pool operator.

(5) Tower.

20‑219.9, andincluding includesa ownersconsensual towing business, private property impound towing business, and employeetow operators.truck operator.

CommercialTowing motorpermit vehiclerequired. tower permit.

(a) A tower engaged in the business of conducting tow operations shall obtain a commercialtowing motor vehicle tower permit from the Division of Motor Vehicles.Vehicles before operating in the State.

(b) ApermitA towing permit issued bytheDivisionunder this Article shall bevalidforbe valid for a periodoftwoperiod yearsunlessof two years unless sooner revoked or suspended by the Division.

(c) TheA Divisiontower isshall authorizedpay to chargethe Division a nonrefundable fee for anthe initial application and for the renewal application forof a towing permit.

(d)The Afee tower shall paynot exceed the coststotal associateddirect withand anyindirect backgroundcosts checksof requiredadministering bythe thisissuance Articleof fortowing permitpermits applicants.under this Article.

(e)(d) A commercialtower motorshall vehiclepay towerthe permitcosts isassociated nontransferable.with any background checks required by this Article for a towing permit.

(e) A towing permit issued under this Article is nontransferable.

If a towing business is sold, the new owner must apply for a new towing permit.

CommercialApplication motor vehicle tower permit application requirements.

(a) The Division shall prescribe the form of the application for a commercialtowing motorpermit vehicleunder towerthis permit.Article.

(b) The Divisionapplication shallmust issuerequire ainformation permitsufficient whento theconfirm applicantcompliance provideswith evidencethis ofArticle. meeting all of the following requirements:

(1)(b) The applicantDivision completesshall not issue a criminaltowing backgroundpermit check.unless the applicant provides proof of meeting all of the following requirements:

If(1) Under the permitcurrent applicantfelony isclassifications anset employeeforth operatorby ofthe State Highway Patrol, a businessbackground engagedcheck inshows, if the applicant is a tow operations,truck operator, the applicant has had no felony convictions within the previous five years, and if the applicant is a towing business owner, the applicant has had no felony convictions within the previous 10 years.

If(2) theThe applicant is an owner of business engaged in tow operations, the applicant has hada novalid felonydrivers convictionslicense. within the previous 10 years.

(2)(3) The applicant has a valid commercialstorage driversyard licensethat forcomplies with the classminimum space requirements of motorthe vehiclecity, conductingcounty, towand operations.State zoning regulations with proper zoning permits.

(3)(4) TheIf the applicant utilizesis a storagetowing yardbusiness thatowner, compliesthe withapplicant carries the minimum spaceinsurance requirements ofrequired by the city, county, and State zoningfor regulationson-hook withliability validand zoninggarage permits.keepers insurance.

House(5) Bill 577-Second Edition Page 5 General Assembly Of North Carolina Session 2025 (4) The applicant carries,has orcompleted isan coveredaccredited by,training theprogram, minimumincluding insuranceadditional requirementstraining required by the Division for on-hookheavy-duty liabilitydrivers andas garagenecessary. keepers insurance.

(5) The applicant has completed an accredited training program, approved by the Division, related to conducting tow operations.

(6) TheIf the applicant owner or employee operator of business engaged in tow operations is a Unitedtowing Statesbusiness citizenowner, orthe possessesapplicant evidencemaintains ofworkers workcompensation authorizationinsurance in compliance with federalState law.

(7) If the applicant is a towing business owner, the owner is a United States citizen, or has a valid visa or proper immigration documentation.

Permit appeals;issuance and renewal.

criminal(a) convictionThe reporting.Division shall not issue or renew a permit unless:

(a)(1) AnThe appealapplication ofis acomplete decisionand toall deny,required suspend,criteria orare revokemet. a permit by the Division shall be governed by the provisions of Chapter 150B of the General Statutes.

(b)(2) The Divisionapplicant maydemonstrates issuethe temporaryability permitsand validintent forto 60comply days,with effectivethis uponArticle submissionand ofall another applicationapplicable forlaws. initial issuance or renewal of a permit, pending the completion of an application process.

Temporary(b) permitsAn expireappeal uponof issuancea towing permit denied, suspended, or denialrevoked by the Division shall be governed by the provisions of Chapter 150B of the permitGeneral application.Statutes.

(c) AThe personDMV issuedmay aprovide permittemporary underregistration this Article that has been found guilty of, or hasauthorization pleadedeffective guiltyupon orsubmission noloof contenderean to,application. any felony or misdemeanor shall notify the Division within 14 days.

(d)Temporary Aauthorization towerexpires mustupon carryissuance itsor permitdenial whenof conductingpermanent towregistration. operations.

ReturnPermit ofrequirements. commercial cargo.

AHouse permitBill holder577-First shallEdition promptlyreturnPage anycommercial3 cargoGeneral towedAssembly bytheOf towerNorth toCarolina theSession owner2025 of(a) theA commercialperson cargo,issued ora towing permit in accordance with this Article shall report to athe designeeDivision within 14 days of theany owner,felony uponor request.misdemeanor conviction.

In(b) theAtowtruck caseoperator ofissuedatowingpermit a trailer containing commercial cargo, the tower shall allow the trailer containing the commercial cargo to be exchanged with a trailer of similar type that is in workingaccordancewith conditionthis andArticleshall wascarry manufacturedproof within five years of theregistration manufacturingwhile dateoperating 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 ridertow fortruck. towing and remediation insurance.

The insurance requirement of this section does not apply to vehicles registered as farm vehicles.

Towing practices deemed unfair trade practice.

A tower engaging in tow operations without a valid permit constitutes an unfair trade practice under G.S.

75-1.1." SECTION 3.1.(b) This section becomes effective July 1, 2026.

SECTION 3.2.

The Division of Motor Vehicles shall publish notice of the requirements for commercial motor vehicle tower permits as required by Article 7C of Chapter 20 of the General Statutes, as enacted by Section 3.1 of this act, on its website by January 1, 2026.

SECTION 3.3.(a) Article 7 of Chapter 20 of the General Statutes is amended by adding a new section to read:

"§ 20-219.3A.

A commercial motor vehicle shall not be immobilized using a device such as a bootboot. or any other device for the purposes of parking enforcement.

Using an immobilization device on a commercial vehicle inwill violationbe ofdeemed this section is a Classmisdemeanor. 2 misdemeanor." SECTION 3.3.(b) This section becomes effective December 1, 2025, and applies to offenses committed on or after that date.

TOWERS"§ AND20-219.41. POSSESSORY LIENS ON COMMERCIAL VEHICLE TRAILERS SECTION 4.(a) G.S.

Unlawful towing practices.

Engaging in private property impound booting or towing without a valid permit constitutes an unfair trade practice under G.S.

75-1.1." SECTION 3.2.

The Division of Motor Vehicles and the State Highway Patrol shall publish notice of the requirements set forth in Article 7C of Chapter 20 of the General Statutes, as enacted by this section, within 30 days of the passage of this bill.

TOWERS AND POSSESSORY LIENS ON VEHICLES, TRAILERS, AND CONTENTS SECTION 4.

G.S.

… (d) Any person who repairs, services, tows, or stores motor vehicles in the ordinary course of the person's business pursuant to an express or implied contract with an owner or legal Page 6 House Bill 577-Second Edition General Assembly Of North Carolina Session 2025 possessor of the motor vehicle, except for a motor vehicle seized pursuant to G.S.

Thislienshallhavepriorityoverperfectedandunperfectedsecurityinterests.PaymentThislienshallhavepriorityoverperfectedandunperfectedsecurityinterests.Paymentfortowing fortowing and storing a motor vehicle seized pursuant to G.S.

(d1) Any person who is entitled to a lien under subsection (d) of this section for towing a commercialvehicle motorvehicleisis also entitledtoentitled alienonto anytrailerattachedtoa lien on the commercialmotorcontents vehicleof combinationthe motor vehicle, any trailer attached to the vehicle at the time of towing.towing, and the contents of the trailer, including other vehicles and boats.

AAlienunderthissectionshallnotextendtopersonalitems,includingmedications,wallets,purses lienand undertheir thiscontents, subsection shall not extend to personal items, including medications, wallets, purses andtheircontents, prescription eyeglasses, prosthetics, cell phones, and keyskeys. of the commercial motor vehicle operator.

These items shall be released without charge to the owner or operator of the towed commercial motor vehicle or toan aauthorized designeerepresentative of the owner or operator.

…."(d2) SECTIONNotwithstanding 4.(b)subsection This(d1) sectionof becomesthis effectivesection, Januaryin 1,cases 2026.of a dispute of a heavy-duty wrecker rotation tow, cargo shall be returned upon verification of required collision insurance coverage or a rider for towing and remediation for commercial motor vehicles operating in North Carolina.

EFFECTIVEThis DATEshall SECTIONoccur 5.via a trailer swap completed by the tower.

ExceptThe asswapped otherwisetrailer provided,must thisbe actof isequal effectiveor whenbetter itcondition becomesthan law.the original towed trailer and owned, leased, or operated by the same company.

HouseThe Billinsurance 577-Secondrequirement Editiondoes Pagenot 7apply to farm vehicles with farm tags.

For purposes of this subsection, "cargo" is freight that is subject to a bill of lading.

…." EFFECTIVE DATE SECTION5.

Thisactis effectivewhenitbecomeslaw.Section3.1ofthisactapplies to a tower operating in this State on or after six months from the effective date of this act.

Page 4 House Bill 577-First Edition