VirginiaSB5952026 Regular SessionSenateWALLET

Mechanics and storage liens; vehicle data.

Sponsored By: Bill DeSteph (Republican)

Became Law

Summary

Mechanics and storage liens; abandoned vehicles; vehicle records. Removes the requirement that the Department of Motor Vehicles, when searching for owner or lienholder information for a vehicle titled in another jurisdiction for (i) the enforcement of a mechanic's or storage lien or (ii) determining ownership of an abandoned vehicle, ascertain such information by contacting the other jurisdiction. The bill retains the requirement that the Department ascertain such information upon initiation of a search by the bailee or person in possession of an abandoned vehicle.

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Faster DMV notices, short reclaim deadlines

The DMV now mails owners and lienholders when a bailee starts lien enforcement. For abandoned-vehicle cases, the DMV sends certified mail with return receipt. Owners have 15 days to reclaim most vehicles, or 120 days for manufactured or mobile homes. If not reclaimed and the debt is unpaid, owners and lienholders lose rights to the vehicle except any sale surplus. The DMV also posts sale details online for at least 21 days and places a hold on the title record during the process. Buyers can use a DMV certification to get a title free of prior liens.

Tow and repair shops: sale rules by value

Shops holding a valid lien can auction a vehicle worth $12,500 or less for cash after required notices. Surplus money must be claimed within 30 days, or the shop may keep it if no one can be found. Vehicles worth over $12,500 and up to $25,000 require a general district court order; over $25,000 require a circuit court order, and the sheriff conducts the sale. If no owner or lienholder is found, a vehicle at least six model years old and worth $4,500 or less can be titled to the shop (or given a nonrepairable certificate) after 30 days in custody and then sold.

Use appraisals to set vehicle value

The DMV uses a recognized pricing guide and trade‑in value to set vehicle value. A bailee may submit an independent appraisal that meets the Commissioner’s rules, and the DMV updates the record to that value. If the guide lacks a trade‑in value, the DMV can accept other approved valuation documents. Independent appraisers must have proper licenses and no financial ties to the bailee.

Required DMV searches, e-filing, and risks

Before enforcing a lien, a bailee must start a DMV record search. The DMV checks Virginia records, a national crime database, and a national title database, alerts police if the vehicle is stolen, and contacts other jurisdictions. If you make more than five searches in 12 months, you must use the DMV’s electronic request system. The DMV gives you a receipt when the search is done. If no record exists or another state will not share info, the DMV does not send notice; you may proceed but you assume full liability if a record is later found. Businesses that provide title data from national databases for insurer total‑loss cases must indemnify and defend the DMV if claims arise from that data.

Protections for active-duty vehicle owners

If the owner is on active duty, the bailee must follow the federal Servicemembers Civil Relief Act. A DMV active‑duty marker is evidence the law applies, but the bailee must still verify service status and comply.

New DMV fees for lien processing

A person holding an abandoned vehicle must pay a $40 DMV search fee; local agencies with a written DMV agreement are exempt. A bailee must pay $40 when filing an intent to sell; the DMV then repeats its search. If a bailee fails to report a paid reclamation within five business days and the DMV must remove a hold, the DMV may charge the bailee $40. Out‑of‑state requesters pay $25 for owner/lienholder searches to enforce similar lien or abandoned‑vehicle laws; the DMV also mails notices but this does not replace that state’s notice rules. All these fees go into a special, nonreverting fund to cover DMV costs.

Sponsors & Cosponsors

Sponsor

  • Bill DeSteph

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 225 • No: 38

House vote 3/3/2026

Passed House

Yes: 81 • No: 17

House vote 2/26/2026

Reported from Transportation

Yes: 18 • No: 3

House vote 2/24/2026

Subcommittee recommends reporting

Yes: 6 • No: 4

Senate vote 2/6/2026

Read third time and passed Senate

Yes: 29 • No: 11

Senate vote 2/5/2026

Reading of amendment waived (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/5/2026

Engrossment reconsidered by Senate

Yes: 40 • No: 0

Senate vote 2/5/2026

Senator DeSteph Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/3/2026

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/2/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/2/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 1/29/2026

Reported from Transportation

Yes: 11 • No: 3

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0826)

    4/13/2026Governor
  2. Approved by Governor-Chapter 826 (effective 7/1/2026)

    4/13/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB595)

    3/9/2026Senate
  6. Bill text as passed Senate and House (SB595ER)

    3/9/2026Senate
  7. Enrolled

    3/9/2026Senate
  8. Signed by President

    3/9/2026Senate
  9. Signed by Speaker

    3/9/2026House
  10. Passed House (81-Y 17-N 0-A)

    3/3/2026House
  11. Read third time

    3/3/2026House
  12. Read second time

    3/2/2026House
  13. Reported from Transportation (18-Y 3-N)

    2/26/2026House
  14. Subcommittee recommends reporting (6-Y 4-N)

    2/24/2026House
  15. Assigned HTRAN sub: Department of Motor Vehicles

    2/20/2026House
  16. Referred to Committee on Transportation

    2/12/2026House
  17. Read first time

    2/12/2026House
  18. Placed on Calendar

    2/12/2026House
  19. Fiscal Impact Statement from Department of Planning and Budget (SB595)

    2/11/2026Senate
  20. Read third time and passed Senate (29-Y 11-N 0-A)

    2/6/2026Senate
  21. Senator DeSteph Substitute agreed to

    2/5/2026Senate
  22. Reading of amendment waived (Voice Vote)

    2/5/2026Senate
  23. Engrossment reconsidered by Senate

    2/5/2026Senate
  24. Engrossed by Senate - floor substitute (Voice Vote)

    2/5/2026Senate
  25. Reading of substitute waived

    2/5/2026Senate

Bill Text

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