Legislation

2026 General Assembly Session Wrap-Up

KEY LEGISLATION & WHAT IT MEANS FOR VIRGINIA DEALERS

The 2026 Virginia General Assembly reviewed 2,366 pieces of legislation, 613 House/Senate Joint Resolutions, 495 House Resolutions and 172 Senate Resolutions. This year’s session workload was comparable to the assembly’s 2025 workload. However, the General Assembly was unable to agree upon a biennial budget, which is the primary focus of the long session that is held in even years. Since the General Assembly convened in March, the body as gone into several special sessions to address biennial budget. The budget must be in place by July 1, 2026, or the state will face its first ever government shutdown.

Aside from the budget issue, the 2026 General Assembly session proved to be fruitful for the Virginia Independent Automobile Dealers Association. The association, working closely with legislators on both sides of the aisle, successfully passed six pieces of legislation. Governor Abigail Spanberger signed these bills into law on or before April 13, 2026. All bills, unless noted otherwise, will become law on July 1, 2026. A summary of the six bills follows:

  1. HB 570 (Del. Feggans) – signed into law on April 6 – allows licensees to maintain all records via paper or electronically. The dealer will declare their method of record retention with the Dealer Board. The bill also requires all advertisements placed by dealers, regardless of platform, clearly identify the dealer by name or use the abbreviations “VA DLR.”
  2. HB586 (Del. Wyatt) – signed into law on April 6 – requires a dealer who changes their business hours to do so through the Motor Vehicle Dealer Board, not the Department of Motor Vehicles.
  3. HB608 (Del. Wyatt) – signed into law on April 13 – allows a dealer to transport up to five gallons of fuel, transport parts and accessories purchased at automotive retail or supply stores while driving on a dealer tag.
  4. HB1386 (Del. Wyatt) – signed into law on April 13 – a consumer who incurs any loss or damage resulting from a breach of an extended service contract is now eligible to file against the Motor Vehicle Transaction Recovery Fund.
  5. SB440 (Sen. Bagby) – signed into law on April 8 – allows a customer to transfer their license plates onto another vehicle owned by the dealership/garage owner when the customer’s vehicle is being repaired, not to exceed 30 days.
  6. SB441 (Sen. Bagby) – signed into law on April 8 – requires the Commissioner (DMV) to create the certificate that will allow a customer to transfer his license plates onto a vehicle, not to exceed 30 days, owned by the dealership/garage owner while the consumer’s vehicle is being repaired.

Other legislation of interest to dealers:

  • HB1 & SB1 – signed into law on April 8 – raises the minimum wage salary to $12.77 in 2026, $13.75 starting on January 1, 2027, and $15.00 on January 1, 2028, or the federal minimum wage.
  • HB1145 – signed into law on April 13 – requires motor vehicle safety inspections be conducted by persons certified as a safety inspector by the Superintendent of State Police.
  • HB1309 – signed into law on April 8 – charges are allowed for GAP waivers for the protection and benefit of the borrower in connection with any loan.
  • SB595 – signed into law on April 13 – Modifies DMV’s processes when providing ownership/lienholder information in Mechanics and Storage Lien, and Abandoned Vehicles situations when ownership/lienholder records are outside Virginia.

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2024 General Assembly Session Wrap-Up

Legislation VIADA Supported

HB1112 & SB545 – Both bills close the auto recycling loophole in the code of Virginia by requiring a lien holder check when a vehicle older than 10 years old comes into the possession of a licensed auto recycler without a title. This bill has passed both chambers. Governor Glenn Youngkin signed both bills March 28, 2024.

HB1106 & SB452 – Independent Dealers will be able to recertify by taking an exam at the DMV instead of taking a course. This bill has passed both chambers. Governor Glenn Youngkin signed both bills March 28, 2024.

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2023 General Assembly Session Wrap-Up

Virginia’s part-time legislature gaveled into session on January 11, 2023. Of the over 2300 pieces of legislation before the General Assembly this year, VIADA tracked a handful of bills that would have a direct impact on the Independent Dealer industry in the Commonwealth. Bills that have completed their business and advanced in one chamber “crosses over” to the other chamber for review and consideration starting February 8th. Because this is an election year for all 140 seats of the General Assembly, this was considered a “short session” and ended on February 25.

Graphic courtesy of VPAP.org

“Clean Car” Repeal Bills Meet their Expected Fate

Several bills were introduced in the House and Senate aimed at repealing the requirement that the State Air Pollution Control Board implement a low-emissions and zero-emissions vehicle program for motor vehicles similar to what is enacted in California. These bills met an early end in the Senate Agriculture, Chesapeake and Natural Resources Committee. In the House, the bill survived committee and passed the full House on a party-line vote. However, it too met its end in committee.

Legislation VIADA Supported

HB1677 – Exempts any amount charged for labor for diagnostic work for automotive repair and emergency roadside service for motor vehicles from retail sales and use tax, regardless of whether there is a sale of a repair or replacement part or a shop supply charge. This bill has passed both chambers and is expected to become law.

HB2254 – Requires the Department of Motor Vehicles to establish and administer a process whereby a vehicle owner may contest an assessed highway use fee. The bill requires the Department to reimburse the vehicle owner for any contested highway use fee or portion thereof that was incorrectly collected. This bill has passed both chambers and is expected to become law.

HB2372 & SB1135 – Makes it a Class 6 felony for any person to sell, offer for sale, or purchase a catalytic converter from a motor vehicle exhaust system that has been detached from a motor vehicle. These bills have passed both chambers and are expected to become law.

HB2422 & SB1509 – Clarifies that the definition of a “home solicitation sale” includes a solicitation of the sale or lease of goods and services in which the seller engages in a solicitation without prior invitation, appointment, or consent. The bill excludes from the definition of “home solicitation sale” a dealer licensed by the Motor Vehicle Dealer Board. These bills have passed both chambers and is expected to become law.

Legislation VIADA Opposed

HB2468 –Current Virginia law requires each location where Tesla or another manufacturer wants to operate be evaluated by the DMV Commissioner through an administrative hearing process. Despite being previously approved for all their locations, Tesla wants to remove the administrative hearing process and receive blanket statewide approval for stores if just a single location is approved. This would create two separate sets of rules for operators. VIADA joined with VADA, the Alliance for Automotive Innovation, and General Motors to speak out against the bill. In a Transportation subcommittee hearing at the end of January the bill was tabled by a vote of 7-2.

2023 is a critical year in Virginia, all 100 seats in the Virginia House of Delegates and all 40 seats in the Virginia Senate are up for election this November. Virginia’s 2023 elections will be a national bellwether test after last year’s national mid-term elections.