Richmond, Va. — The House Transportation Committee's DMV subcommittee met Jan. 28 and took formal action on multiple bills affecting vehicle registration, dealer rules and traffic-stop procedures.

The panel reported eight bills to the full committee and declined to report one. Key outcomes included: House Bill 2261, narrowing trailer-franchise requirements; HB 2205, clarifying DMV documentation for financial responsibility; HB 2458, exempting certain farm trailers from a specific utility-trailer code section (substitute adopted); HB 2423, creating a process to report out-of-state registration/address misuse; HB 2721, updating a special license plate for the Washington Commanders; HB 1836, a substitute setting minimum standards and DMV oversight for driver training schools; HB 2501, establishing a voluntary ‘‘blue envelope’’ program for drivers with communication disabilities; and HB 1683, a dealer-backed bill tightening how manufacturers compensate dealers for warranty and recall work. House Bill 2659 — proposing a lease-specific buyer’s order requirement — failed to report with the amendment before the subcommittee.

Why it matters: Several measures affect everyday motorists (registration, lease forms, recall repairs) and local businesses (auto dealers, trailer sellers). HB 2501 drew extensive public testimony from disability advocates and law enforcement supporting a voluntary, DMV-issued envelope to help officers identify communication needs during traffic stops. HB 1683 prompted detailed debate between dealers and vehicle manufacturers over how warranty labor and parts pricing are calculated and paid.

Trailer franchises and retail trailers (HB 2261)
Delegate Chair Delaney introduced House Bill 2261, which would limit trailer-franchise requirements to new trailers with a gross vehicle weight rating above 30,000 pounds. Nicole Brenner of 7 Hills, representing American Trailer World, told the subcommittee: “We appreciate this opportunity to bring Virginia into alignment with the majority of the country on this issue and reduce the regulatory burden here.” The subcommittee voted to report HB 2261 to the full committee by a vote of 7 to 0.

DMV paperwork: financial responsibility (HB 2205)
Delegate Kilgore presented HB 2205, described as a clarification bill from the Department of Motor Vehicles that differentiates the statutory term “financial responsibility” from administrative requirements tied to future insurance obligations (for example, SR-22 filings). Kilgore said the change aims to make clear what documentation drivers must present at DMV. The subcommittee voted 7 to 0 to report the bill.

Farm trailers and utility-trailer code (HB 2458, substitute)
Delegate O’Quinn introduced HB 2458, which applies existing exclusions for certain utility-trailer construction (for example, trailers made largely of metal mesh) to farm-use placards and farm-use tags and allows limited operation between sunrise and sunset with specified reflector requirements. Brad Copenhaver of the Virginia Agribusiness Council and Caitlin Jordan of Virginia Farm Bureau spoke in support; Jordan said, with the adopted amendment, the Farm Bureau was neutral. The subcommittee reported HB 2458 with substitute by a vote of 7 to 0.

Address misuse and out-of-state registration complaints (HB 2423)
House Bill 2423, introduced by Delegate Weber, would permit an owner or lessee of real property to notify DMV if the property’s address is being used as the registration address for a vehicle that does not belong to the property owner or resident. The bill requires DMV to attempt to notify the vehicle owner, search the National Change of Address system, and if unable to identify the correct address, authorizes the department to revoke registration and plates. The subcommittee reported HB 2423 by a vote of 7 to 0.

Leasing forms: buyer’s order for leases fails to report (HB 2659)
Delegate Milday presented HB 2659, a housekeeping bill to allow dealers to use a lease-specific buyer’s order form that uses lease-appropriate terminology. The subcommittee considered a line amendment clarifying dealer discretion in using a lease-specific form. After a roll call, the clerk announced, “House Bill 2659 fails to report with amendment.” The recording shows the motion and line amendment were discussed before the clerk’s announcement.

Washington Commanders special plate (HB 2721)
Delegate McClure presented HB 2721, a technical update to the special Washington Commanders license plate statute to reflect the team’s updated logo and to ensure proceeds flow to the correct foundation. Beth Toole of McGuireWoods Consulting, representing the Commanders, thanked the patron. The subcommittee reported HB 2721 by a vote of 7 to 0.

Driver training schools: minimum standards and DMV oversight (HB 1836, substitute)
Delegate Wiley presented a substitute to HB 1836 that sets minimum requirements for driver training school operators, strengthens DMV’s ability to monitor schools, requires secure storage of student records, and requires at least 48 hours’ notice of behind-the-wheel test times and locations to allow for random DMV inspections. The substitute removed two provisions that had drawn opposition in the original draft (relocation of home-based schools and a ban on instructors testing their own students). The subcommittee reported the substitute 8 to 0.

Blue Envelope program for drivers with communication disabilities (HB 2501)
Delegate Rasoul presented HB 2501 to create a voluntary DMV-issued “blue envelope” that drivers with communication disabilities could present during a traffic stop to explain communication needs. Testimony in support included Maureen Hollowell of the Virginia Association of Centers for Independent Living, Tamika Page of the Roanoke City Sheriff’s Office, Mark Lobel of the Virginia Autism Foundation, Lieutenant Kevin Lokey of the Virginia Beach Police Department and multiple advocacy organizations (Autism Society chapters, The Arc). Lokey said traffic stops are ‘‘one of the more dangerous things that police officers perform’’ and described the envelope as “a great tool.” The subcommittee reported HB 2501 by a vote of 8 to 0.

Auto dealers and warranty/recall compensation (HB 1683, substitute)
Delegate Sewell presented House Bill 1683 (substitute), a comprehensive set of changes aimed at how manufacturers compensate dealers for warranty and recall repairs. The substitute would (1) clarify timing for a manufacturer's right of first refusal in dealership sales; (2) revise the statutory method for determining dealer warranty compensation so that the statutory calculation, rather than a separate ‘‘reasonableness’’ standard, governs compensation; (3) require full payment for diagnostic time spent waiting for technical assistance from manufacturers; (4) limit manufacturer price reductions on parts used in recall repairs by setting parts price for compensation at the highest price in the prior 12 months; (5) allow dealers to request earlier reimbursement for long-term rental expenses and clarify rental reimbursement when manufacturer requirements force dealers to provide rentals of a kind they cannot source at retail cost; and (6) require manufacturers to accept return of unused recall parts within a 12-month window.

Supporters included service managers and the Virginia Auto Dealers Association, which argued that manufacturers manipulate parts pricing and underpay dealers for warranty work, harming service technicians and competitive pay. Opponents (including attorneys and representatives for Volkswagen, General Motors, Ford and Volvo Trucks) urged preserving a ‘‘reasonableness’’ standard as a check against dealers seeking excessive rates. Antonio Elias of Volkswagen told the subcommittee he has not observed a pattern of denial and said warranty reimbursement for Volkswagen dealers in Virginia rose roughly 30% from 2020 to 2024; other manufacturer representatives urged continued negotiation on lines 55–57 of the substitute. After debate, the subcommittee reported HB 1683 with the substitute by a vote of 7 to 1.

Votes at a glance
- HB 2261 (trailer franchise threshold >30,000 lb): reported 7–0.
- HB 2205 (DMV clarifying financial responsibility documentation): reported 7–0.
- HB 2458 (farm-use/utility-trailer code exclusions; substitute): reported 7–0.
- HB 2423 (address misuse reporting, remedies): reported 7–0.
- HB 2659 (lease buyer’s order amendment): failed to report (clerk: “fails to report with amendment”).
- HB 2721 (Washington Commanders plate update): reported 7–0.
- HB 1836 (driver training school substitute): reported 8–0.
- HB 2501 (blue envelope for communication disabilities): reported 8–0.
- HB 1683 (warranty/recall compensation substitute): reported 7–1.

What’s next: Reported bills move to the full House Transportation Committee for further consideration. The subcommittee’s record and any substitute text will be available in committee files and the General Assembly’s website. The auto-dealer warranty bill may prompt additional negotiation and amendment as manufacturers and dealer groups continue to press their competing proposals.

Quotes (selected)
“We appreciate this opportunity to bring Virginia into alignment with the majority of the country on this issue and reduce the regulatory burden here,” Nicole Brenner of 7 Hills, representing American Trailer World, said regarding HB 2261.
“Financial responsibility is the legal term that refers to how a driver covers the expenses in case of an accident,” Delegate Kilgore said of HB 2205.
“A blue envelope for someone who has difficulty communicating would be a great tool,” Lieutenant Kevin Lokey of the Virginia Beach Police Department said in support of HB 2501.
“Manufacturers also artificially reduce the amount of time they claim is required for warranty/recall labor so they can compensate for fewer hours,” Delegate Sewell said while presenting HB 1683.

Ending: The DMV subcommittee recessed after completing votes on the docket. Reported bills will proceed to the next committee steps; members and stakeholders indicated several bills — particularly HB 1683 — will see continued negotiations.