Capitol Briefs: Week 3

The third week of Virginia’s 2026 legislative session felt like a classic example of how legislation moves in the Commonwealth: quickly, relentlessly, and occasionally chaotically – especially when Mother Nature decides to get involved.

Legislators, lobbyists, and visitors to the General Assembly last week had to work their way through salty roads and slick sidewalks. Thankfully, a few pathways were cleared to make coming and going safe.

Despite the snow and ice storm that fell over Richmond last weekend, the 2026 General Assembly session continued full speed ahead while moving the first batch of bills through the House of Delegates and Senate. This phase of session is indicative of which bills may pass through the chambers easily with bipartisan support, which bills are going to be more contentious, which concepts need more shaping, and which policies are being prioritized by leadership — and ultimately funded.

Over the coming 40 days, the tough policy work will take place – negotiations between the House and Senate, policy refinement behind the scenes, and ultimately the budget discussions will determine which ideas cross the finish line.

Policy landscape taking shape

Among the broader policy considerations, this week’s conversations continued to center around a few themes: consumer protections, labor policies, tort reform, tax reform, data privacy, transportation costs, and clean energy policies.

The Virginia Automobile Dealers Association’s government affairs team continues to track developments closely. This week’s update focuses on dealer-specific legislation, broader DMV and vehicle-related policy, and the continued discussion around transportation-related tax reform.

Steady progress on dealer-focused legislation

Week Three saw encouraging movement on a handful of dealer-specific bills aimed at practical policy reform and code modernization.

Two bills passed unanimously out of the Senate Transportation committee and the full Senate, which would provide dealers and customers with more flexibility when vehicles are undergoing lengthy repairs.

• SB440 extends the period for which a customer can use their own license plate on a courtesy vehicle while their automobile is in a dealer’s repair shop from 5 days to 30 days.
• Similarly, if the customer uses a license plate on a vehicle other than their own when their vehicle is in the repair shop, SB441 extends the period that a special permit can cover the plate from 5 days to 30 days.

On the House side, three dealer-specific bills also moved unanimously through subcommittees and the full committee and will soon head to the House floor for consideration.

• HB570 removes outdated language from the Code of Virginia, which requires dealers to obtain approval from the Motor Vehicle Dealer Board prior to storing records electronically.
• HB586 clarifies that dealers are to notify the Motor Vehicle Dealer Board, not the Department of Motor Vehicles, when filing business hour changes.
• HB608 removes the prohibition against the use of dealer tags on vehicles delivering or transporting vehicle parts, accessories, or fuel.

Broader DMV and vehicle-related issues

Beyond dealer-specific legislation, several DMV and vehicle-related measures advanced this week out of Senate Transportation.

• SB135 would allow the DMV to join a national vehicle title database to share motor vehicle owner and lienholder information as an effort to crack down on title washing and title fraud.
• SB595 would allow the DMV to share mechanics or storage lien information against vehicles titled in other jurisdictions with holders of the vehicle.
• SB17 seeks to limit petitions for court orders for the sale of abandoned vehicles by updating the monetary cap on vehicles that may be sold at public auction from $12,500 to $17,000.
• SB506 authorizes the application of clear films to vehicle windshields so long as the film does not impair visibility.
• SB670 puts forth a regulatory and licensure framework for commercial fully autonomous vehicles.

At the outset of session, we were looking forward to hearing HB219, which would have provided a licensing and registration framework for tiny "kei" vehicles. However, legislators voted to put this one off another year.

Transportation funding and taxes: What’s happening?

Tax reform related to transportation funding remains one of the consequential and complex discussions unfolding this session.

As discussed at VADA’s December legal and legislative updates, we anticipated a group of lawmakers entering the 2026 session prepared to revisit how Virginia funds major transportation systems, particularly public transit in Virginia’s most dense districts. The conversation stems from a joint subcommittee study initiated by 2024 legislation which sought solutions for a long-term, sustainable, and dedicated funding source for the Washington Metropolitan Area Transit Authority, the Virginia Railway Express, and the public transit systems serving the Northern Virginia Transportation Commission and the Potomac and Rappahannock Transportation Commission. The subcommittee formally transmitted its recommendations to legislators in November 2025, which included a request for significant funding from the state.

Several legislative proposals now on the table reflect different solutions to addressing the funding gap.