House Bill 1024 would create a regulatory framework for nonconsensual towing in North Carolina for vehicle towing — a business that bill sponsors say is effectively unregulated. (Photo: iStock/Getty photo)
“It’s kind of the Wild West out there,” explained Rep. Carson Smith (R-Onslow) in urging members of the North Carolina House Judiciary 2 Committee on Wednesday to support a new bill to rein in North Carolina’s vehicle towing industry.
The Onslow County Republican said he teamed up with Mecklenburg County Democrat Rep. Laura Budd after hearing from a constituent who had his truck towed and had to pay $3,500 to get it back.
Budd said House Bill 1024 would create a regulatory framework for “nonconsensual” towing (i.e. without the consent of the vehicle owner) in North Carolina where no framework has existed.
“It protects not just consumers and North Carolinians, but also those engaged in small business and interstate commerce with semis and towing and recovery businesses as well,” said Rep. Budd.
The bill specifies that in order to tow in North Carolina, a towtruck driver will be required to apply for and receive a permit. Currently, the only requirement is that a driver get a commercial driver’s license. Those towing on behalf of the state Highway Patrol would need an approved background check.
The legislation also clarifies sign requirements for any business that wishes to have passenger vehicles or semis towed off of their property without the consent of the vehicle owner.
The property owner would be required to post clear signage that has to identify not just that a motorist can be towed if they are not lawfully parked, but to where the vehicle will be towed, the cost of the tow, as well as all contact information for the company that is towing the vehicle.
Another section of HB 1024 calls for the creation of a statewide towing website.
Mecklenburg County Rep. Laura Budd explains to members of the House Judiciary 2 Committee how HB 1024 would change towing practices in North Carolina. (Photo: NCGA video stream)
“So right now, if you were to go out to dinner, you come out of the restaurant and your vehicle is missing, assuming the signage is there but you’re panicked and you don’t know how to get there or where it goes, you’re going to go to a website that is going to be created that has a database,” Budd outlined. “You are going to plug in your name or your vehicle number or your VIN number and it is going to tell you the owner of that vehicle, not just where your vehicle is, but what the hours of operation are, who towed your vehicle and the amount of the tow that you will be charged.”
Rep. Budd said that’s critical because right now, there are no limits on the amount of money that can be charged.
Tow truck operators would be required to enter into the database the make, the model, and the VIN number of the vehicle or the plate number, as well as their name and permit number, identifying they are lawfully able to tow in North Carolina.
“You also have to, in that database, identify who authorized that tow and the purpose for the tow,” said Budd.
All of the information will be reported to a joint oversight committee in the General Assembly on an annual basis.
A new towing commission appointed by the General Assembly and the governor’s office would be tasked with setting the maximum rates across the state based on the region for towing both passenger vehicles as well as semis.
The commission would also deal with complaints against unscrupulous tow truck operators.
“So, if you are a consumer or you drive a semi and your vehicle is towed and you have a concern or a grievance, you get to file it with that commission and that data can then be assessed to determine whether or not the annual permit renewal for that tow truck driver should go through.”
Rep. David Willis (R-Union) said the legislation was long overdue.
“We’ve heard about this for years, anybody that’s been anywhere remotely close to a college campus in the last 30 years has probably come across a boot or a tow truck,” said Willis. “You go out at night, sometimes and you just see multiple tow trucks just literally on the prowl and [it] needs to be addressed.”
Willis suggested the commission establish caps for the exorbitant storage fees motorists are sometimes charged.
Budd agreed, noting that she recently received notice of a semi that was towed costing the operator $15,000.
“What they are doing is charging for the truck as well as the trailer so they are the predatory nature,” Budd said.
As for multi-tenant residential properties, the owner would be required to clearly post their policy and give renters an initial 24-hour notice before they could begin towing. If not, the property owner would be responsible for payment of the tow for the consumer.
A towing business that boots a car would be required to affix a notice on the windshield that legibly states the name of the company that booted the vehicle with a warning that driving the vehicle with the wheel clamp on could damage their vehicle.
The proposed committee substitute for HB 1024 was approved by the committee and will now move forward with referrals to the Appropriations, Finance, and House Rules committees.
Property owners would be required to post clear signage that includes where vehicles are being towed, the amount of the tow, and all contact information for the company that is towing the vehicle. (Photo: Clayton Henkel)
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