Bill
HB 931
NC HB 931 requires transparent, reasonable towing fees, caps storage/processing charges, mandates upfront disclosure, and lets the Utilities Commission enforce with penalties.
Status & key dates
- Short title: End Predatory Towing Fees and Practices.
- Bill file/first reading: Filed 11/12/2024; First Reading in House: 04/14/2025.
- Effective date (as written): October 1, 2025.
- Sponsors (primary): Representatives Longest, Warren, Hawkins, Buansi (primary sponsor: Longest).
- Statutory placement: Adds G.S. 20‑219.25 to Article 7B of Chapter 20 of the General Statutes.
Purpose
- To curb abusive or “predatory” towing and fee practices by establishing consumer protections, disclosure requirements, limits on certain fees and practices, and an enforcement mechanism administered by the Utilities Commission and the Public Staff.
Major provisions (summary)
- Reasonable fees and disclosure
- All towing fees must be “reasonable and not excessive” and be clearly and conspicuously disclosed to the vehicle operator — before towing when feasible. Disclosure may be accomplished by signage (e.g., per G.S. 20‑219.2(a)).
- Tow destination and recovery
- A towing company may not tow a vehicle to a location where the vehicle cannot be recovered within 24 hours of being towed.
- Storage fee limitations
- A towing company may not charge storage fees for days when the company is not open at least 9:00 AM–4:00 PM.
- If the company is not open 24 hours, it may not assess storage fees until at least one business day has elapsed after the vehicle could first have been recovered.
- Payment acceptance and processing fees
- Tow companies must accept cash, debit card, and credit card payments during operating hours, including at the time of towing.
- If a payment processing fee exceeds 2% of the owed amount, the fee must be limited to the actual cost the company incurs to process the payment.
- Rulemaking and enforcement
- The Utilities Commission may adopt implementing rules.
- Under G.S. 62‑34, the Public Staff may investigate compliance and recommend enforcement.
- Civil penalties up to $5,000 per violation may be assessed; proceeds go to the Civil Penalty and Forfeiture Fund.
- Violations are classified as unfair and deceptive trade practices under G.S. 75‑1.1.
Factors for determining whether a fee is “reasonable”
- Whether the fee is proportional to the cost of service.
- The reason for charging the fee.
- Any other factor the Utilities Commission deems appropriate.
Who is affected
- Consumers/drivers: greater transparency, easier access to vehicle recovery, limits on storage and processing fees.
- Towing companies: new disclosure, payment acceptance, storage-fee timing rules, and potential liability/penalties; likely administrative and operational changes (hours, signage, payment processing).
- Property owners/parking lot operators and insurers: may see changes in towing vendor practices and fee structures.
- Regulators: Utilities Commission and Public Staff will have new rulemaking and enforcement responsibilities.
Potential impacts and considerations
- Consumer protections: likely reduce surprise fees and increase vehicle-accessibility after towing.
- Compliance costs: tow operators may incur costs to modify hours, signage, payment systems, and recordkeeping.
- Enforcement burden: Public Staff and Utilities Commission will need resources/processes to investigate and adjudicate complaints.
- Ambiguities: Terms like “reasonable” may require regulatory definition and case‑by‑case determinations; rulemaking will shape practical effect.
References to statute and authority
- New statutory section proposed: G.S. 20‑219.25.
- Enforcement authority referenced: G.S. 62‑34 (Utility Commission/Public Staff investigatory powers) and G.S. 75‑1.1 (unfair and deceptive trade practices).
Compiled from official sources — confirm details with the bill’s official record.
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