A bipartisan bill in the North Carolina House of Representatives seeks to end abusive and criminal car towing practices.
HB 1024 Nonconsensual Booting and Towing Reform, provides new regulations that create a legal framework for this activity in the state.
“This bill provides a regulatory framework where none existed before,” Representative Laura Budd, a Democrat and one of the bill’s sponsors, told members of the Judiciary Committee 2.
“The proposal is supported by the towing and trucking industries and will offer protection to North Carolinians from predatory towing practices, as well as to companies doing business in our state,” he noted.
Related> Requirements to process a driver's license in North Carolina
What the bill provides
The legislative proposal also creates a Towing and Recovery Commission. This commission will have the task of supervising and regulating these practices, ensuring that towing companies comply with established regulations.
The bill will also require all towing companies to obtain permits from the Commission before operating in the state and to renew these permits annually. In addition, a public database of cars towed by order of security agencies will be created, facilitating access to this information for citizens.
Another important measure is the requirement for private property owners to display appropriate signage before proceeding with the booting or unauthorized towing of vehicles. Failure to comply with these signage requirements will constitute a violation.
The legislation will also establish standard practices for towing and booting in North Carolina, regulating the fees companies can charge for these services. This regulation seeks to protect consumers from excessive fees and ensure fair practices in the industry.
To implement these provisions, $500,000.00 will be appropriated from the Highway Fund to the Department of Public Safety for fiscal year 2024-2025. This funding will allow the new commission to carry out its responsibilities and ensure compliance with the law.
With the favorable report in the Judiciary Committee 2, HB 1024 now continues its path, before reaching the full House of Representatives, to the Appropriations, Finance, and Rules and Operations committees.
Related> Advocating for Tenants in North Carolina Mobile Home Neighborhoods
What does the current law say?
Current law in North Carolina authorizes owners of private parking lots to tow unauthorized vehicles, but the owner must display certain signage for 72 hours before removing the vehicle.
Additionally, the vehicle owner is responsible for towing and storage costs.
Generally, the towed vehicle cannot be taken more than 15 miles from the towing location. Any violation of this section constitutes a violation.
Authorizes the operator of a gasoline service station to request the removal of a vehicle parked on the premises for more than 48 hours. Whenever a vehicle is towed at the request of someone other than the owner, certain information must be provided to local law enforcement before moving the vehicle. This is unless the vehicle is blocking traffic or endangering public welfare.
The law currently applies in certain cities and counties.
Power to Attorney General to establish towing standards
In addition to the bill HB 1024, another initiative that addresses the same problem was presented in May by a bipartisan group of legislators in the House of Representatives.
HB 1037 End Predatory Towing Fees and Practices, provides, among other provisions, to give the Attorney General the power to set automobile towing standards.
This, taking into account that the office already has a consumer protection unit.
This proposal also includes specific regulations on auto towing practices and rates, designed to protect consumers and ensure fair treatment.
Among the provisions, it is established that a towing company may not move a vehicle to a location that does not offer its recovery within 24 hours of towing it. Additionally, a storage fee will not be allowed for days when the business is not open at least 9:00 AM to 4:00 PM.
To facilitate the vehicle recovery process, towing companies will be required to accept debit card, credit card and cash payments at any time during their operating hours, including when towing is being performed. These measures seek to make the vehicle recovery process more accessible and less burdensome for owners.
HB 1037, after passing its first reading, was sent to the Judiciary Committee.
Predatory and discriminatory behavior
In December 2023, Attorney General Josh Stein demandor A1 Towing Solutions, Inc. and its owner David Jewel Satterfield for allegedly racially discriminating against consumers and illegally booting and towing their vehicles.
“This defendant has not only been breaking the law and harming the citizens of North Carolina, but he has done so by deliberately targeting African Americans,” Stein said in a press release.
“It is both wrong and illegal, and I am asking the court to stop him from engaging in this predatory and discriminatory conduct and to provide full financial relief to his victims.”
Prosecutor Stein's office stated that of the 14 complaints received, 11 were filed by African Americans.
The North Carolina Department of Justice's Consumer Protection Division found that Satterfield targeted African Americans through a process called "reverse redlining," in which certain communities receive less favorable treatment.
Also, Stein added another company owned by Satterfield, Automobile Recovery & Parking Enforcement Inc., to the complaint and sought injunctive relief, restitution, civil penalties, and attorneys' fees and investigative expenses.
PODCAST
After the storm
A year ago, Hurricane Helene struck western North Carolina. The Latino community responded with something stronger than the storm: solidarity.
🎧 In this episode, learn how Latino organizations transformed crisis into resilience.
▶️Press play to listen!
Republish our stories for free on your website or newspaper. We follow the Creative Commons license. Click the box and follow the instructions.
