Capitol Briefs: Week 2

The bills are in and Virginia’s 2026 General Assembly session is in full swing.

Last week marked the first full week of the 2026 legislative session. As of the bill filing deadline on Friday, over 2,500 bills have been filed and will be considered by the legislature. 

The Virginia Automobile Dealers Association government affairs team is closely tracking over 200 bills this legislative session that are of direct interest to Virginia's franchised new car and truck dealers, their teams, and Virginia consumers and drivers. Committees are positioned to hear a wide range of proposals on labor and employment policy, data and privacy, and tax. All of these measures are still in early stages and can be expected to change over the coming weeks.

While much of this work is still in early stages and bills will continue to change over the coming weeks, momentum on some key items is building. Below, we offer a look at priority legislation VADA is tracking.

Also: the winter storm that has blanketed Virginia has forced us to postpone VADA's annual Dealer Day on the Hill from this Wednesday to Wednesday, Feb. 25. Get the details.

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House Joint Resolution 34: The first step to repeal the "hated" Virginia Car Tax 

The House Rules Studies Subcommittee heard a proposal by freshman legislator Lily Franklin (D-Montgomery) on Friday afternoon. The proposal directs the state to study options for abolishing the (in the words of the governor and many others) "most hated" tax in Virginia: the car tax. Since this personal property tax is administered by localities, this study will evaluate local revenue sources that could account for the shortfall in local tax revenue that will come from abolition. 

The House Rules Subcommittee prefers not to advance bills out of the subcommittee. However, freshman Franklin’s bill received a positive report out in a 4-1 vote. 

Here is Del. Franklin commenting on the tax study.

Sen. David Marsden is the patron of a similar bill on the Senate side, SR6. Marsden, a longtime friend of VADA, is a member of the Senate Transportation Committee.

Will Virginia finally fund EV infrastructure?

HB324 marks the fourth time Del. Richard “Rip” Sullivan, D-McLean, has filed legislation to establish and create an Electric Vehicle Rural Infrastructure Program and Fund in Virginia. Last year, the same legislation made it through the legislative process and received funding in the final budget proposal, however, it stopped short of being made into law after being vetoed by former Gov. Glenn Youngkin. The 2026 bill creates a fund to assist private developers with non-utility costs associated with the installation of electric vehicle charging stations in rural parts of Virginia, aimed at making EV adoption more accessible for Virginians.

• Last week, the bill received positive votes out of House Labor and Commerce committees, and it will now make its way to House Appropriations, where legislators will determine if it makes the cut to be included in the budget amendments sent to Gov. Abigail Spanberger. 

Del. Sullivan also filed HB890, which will set goals for electrification of the state’s fleet vehicles.

Del. Bonita Anthony (D-Norfolk) filed HB179, which would have created a Fleet Modernization Advisory Council, but the House Rules Studies Subcommittee recommended laying Anthony’s bill on the table, which halts further action on the bill. 

House Bill 312, aimed at ADAS technologies and windshields

Notable legislation came from freshman Del. Kacey Carnegie (D-Chesapeake).

• The bill makes it a violation of the Virginia Consumer Protection Act for a motor vehicle glass repair facility to fail to notify its customer about an advanced driver assistance system (ADAS) in their vehicle and of the repair shop’s abilities to recalibrate such system following the vehicle’s glass repair. The bill also dictates that if a motor vehicle glass repair shop fails to recalibrate a vehicle’s ADAS, the repair shop must refer the customer to a certified dealership for assistance. 

HB312 was amended after being heard in a Labor and Commerce’s subcommittee last week (see testimony from the bill here). The amended version will be voted upon in House Labor and Commerce this week. 

Sen. Luther Cifers (R-Hanover) is the patron of a similar bill on the Senate side, SB767. 

Class Actions likely for Virginia

Bringing class actions to Virginia has been on the ‘to-do’ list of plaintiff-friendly legislators for several years now. Uniquely, Virginia and Mississippi are the only two states that lack a state-level process for class action claims. While class action claims involving Virginia law or entities can be heard in Virginia’s federal courts under current law, class action litigants are unable to proceed with these claims in state court.

• Last week, Virginia’s legislature moved a step closer to creating a mechanism for class action claims to proceed in Virginia courts. The Senate Courts committee heard testimony on SB229 Wednesday afternoon and the bill reported favorably out of committee, despite testimony from Virginia’s business community against the bill. The class action bill will now make its way to Senate Finance and Appropriations, where legislators will consider the costs of implementing a class action process in Virginia.

A companion bill, HB449 is proceeding forward on the House side.

Broader landscape and looking ahead

This week will be important as the legislature is able to fully consider all 2026 pieces of legislation. As more bills move from subcommittees to full committees and chamber calendars, priority legislation will emerge and policy decisions will begin to take form. 

Other issues we're watching

Registration decals and safety inspections: HB1143 would eliminate the requirement to display license plate decals, while HB1145 would extend the motor vehicle safety inspection cycle from 12 months to 24 months. Both bills are carried by Del. Terry Austin (R-Buchanan).

Automated driving systems and autonomous vehicles: Several bills introduced this session focus on autonomous vehicle technology.

HB1124 from Del. Nadarius Clark (D-Suffolk) and HB1125  from Del. David Reid, (D-Ashburn) address the broader regulatory framework for autonomous vehicles operating in Virginia.

• HB1124 sets operational and safety requirements, including requiring human oversight in certain commercial uses, establishes civil penalties for violations, and directs the Department of Motor Vehicles to report annually to the General Assembly on autonomous vehicle activity and safety.
• HB1125 takes a more forward-looking approach by creating a state licensing requirement for fully autonomous vehicles and automated driving systems, limiting local bans on them, and directing DMV to convene a work group to study autonomous vehicle policy and deliver recommendations to lawmakers this year.

Two additional bills — HB582  from Del. Jackie Glass, (D–Norfolk) and SB320  from Sen. Kannan Srinivasan (D–Loudoun) — are companion bills focused specifically on highway safety and maintenance operations. They authorize the Virginia Department of Transportation to establish a pilot program allowing the use of autonomous truck-mounted attenuators in mobile work zones, such as striping or debris removal operations. These vehicles would operate under controlled conditions to evaluate whether autonomous technology can improve safety for road crews and motorists.

Together, the bills signal growing legislative interest in testing autonomous technology while maintaining oversight, safety controls, and a measured approach to broader deployment across the Commonwealth.

Transportation legislation

There are various bills to impose taxes and fees to fund transportation. That includes a tax on numerous services statewide and regionally, including car repairs and additional regional highway use fees.

Business and labor legislation

There are bills considering class actions, minimum-wage increases, employee protection measures, Consumer Protection Act changes, Human Rights Act updates, non-discrimination policies, and “stay-or-pay” contract proposals.

Workforce and education initiatives

There is discussion for expanding funding for apprenticeships and technical education programs — an area of strong interest given the ongoing technician shortage with dealers.