HB 199 — Nonconsensual Booting and Towing Reform (Summary)

Status: Reported Favorably — Committee Substitute (Committee substitute adopted)

Introduced: 2025 (NC General Assembly)

Subject: Creates a new regulatory framework for nonconsensual booting and towing (new Article 7C, Chapter 20, NC General Statutes)

Main purpose / intent

To regulate nonconsensual booting and towing from private property by:
- creating a state oversight body (Towing and Recovery Commission) within the Department of Public Safety;
- requiring permits for nonconsensual towing businesses;
- capping and standardizing fees and billing practices; and
- establishing complaint tracking, a statewide database, and oversight/enforcement tools.

Key provisions

• Establishes the Towing and Recovery Commission (Article 7C):

  • Located within the Department of Public Safety.
  • Powers include issuing permits to nonconsensual towing businesses, setting annual maximum fees, creating a standardized itemized billing form, maintaining a towing-business database, recording public complaints and resolutions, and administering the Article.
  • Authority to set different maximum fees by vehicle type and by geographic region (Commission may divide the State into regions to account for cost differences).

• Commission composition and operation (committee substitute version):

  • 11 members: Secretary of DPS (or designee) plus appointments by the General Assembly (Speaker and President Pro Tempore) and the Governor. Appointees include industry representatives (towing associations, trucking assoc., dealer associations), law enforcement, consumer advocacy, and the NC Bar Association.
  • Staggered initial terms (1–3 years); regular three-year terms thereafter.
  • Chair is the DPS Secretary (or designee); first meeting required no later than April 1, 2026; Commission to meet at least twice annually.

• Permits and fees:

  • Nonconsensual towing businesses must obtain Commission permits (detailed permit requirements in G.S. 20‑219.50 and following sections).
  • Commission to set annual maximum fees for booting, towing, storage, and handling of personal/commercial property; may differentiate by vehicle type and region.
  • Commission must create a standardized form to itemize charges billed to vehicle owners.

• Transparency, complaints and enforcement:

  • Commission will maintain a statewide database of nonconsensual towing businesses and record public complaints and outcomes.
  • Annual report (due by Feb 15 beginning in 2027) to Joint Legislative Oversight Committee on Justice and Public Safety covering complaints, resolutions, permit issuance and revocations, and database implementation.
  • Commission empowered to revoke or decline to renew permits for noncompliance.

• Scope / exemptions:

  • Does not apply to tows conducted at the direction of law enforcement or to tows governed under existing Article 7A.

Who is affected

• Nonconsensual towing and booting businesses (new permitting, fee caps, reporting and oversight).
• Vehicle owners whose vehicles are booted/towed from private property (standardized bills, caps on fees, complaint channel).
• Private property owners/operators who use nonconsensual towing services.
• Department of Public Safety (hosts Commission) and the Commission members.
• Local law enforcement (as stakeholders and exemptors for law‑directed tows).
• Consumer advocacy groups and dealers/trucking industry (represented on Commission).

Procedural / timeline highlights

• Commission appointments/terms commence Jan 1, 2026 (staggering provided).
• First Commission meeting required by April 1, 2026.
• Commission begins annual reporting to the legislature by Feb 15, 2027.
• The committee substitute was reported favorably (6/3/2025).

Expected impacts

• Increased state oversight and standardization of nonconsensual towing practices.
• Potential downward pressure or stabilization on fees through annual maximums.
• A new administrative burden for tow operators (permits, database reporting) and administrative responsibilities for the Commission and DPS.
• Improved consumer protections via standardized billing, complaint tracking, and permit enforcement.

For full statutory text and implementation details (permit criteria, enforcement procedures, fee schedules, and database requirements), consult the bill as adopted by the Committee Substitute and the enacted codified language in Article 7C of Chapter 20 (G.S. 20‑219.31 et seq.).