VirginiaSB5952026 Regular SessionSenateWALLET

Mechanics and storage liens; vehicle data.

Sponsored By: Bill DeSteph (Republican)

Signed by Governor

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

7 provisions identified: 1 benefits, 0 costs, 6 mixed.

Active-duty owners get vehicle disposal protections

Businesses disposing of an active-duty servicemember’s vehicle must follow the federal Servicemembers Civil Relief Act. A DMV active-duty flag counts as evidence that these protections apply. Businesses must still check the owner’s military status, even when DMV records have no flag.

Abandoned vehicles face fees and deadlines

A person holding an abandoned vehicle pays $40 for an owner-and-lender search; local agencies with written DMV agreements are exempt. DMV sends identified owners and lenders certified notices giving 15 days to reclaim and remove the vehicle. Manufactured and mobile homes have 120 days; after the deadline, unclaimed vehicles lose prior ownership and secured claims. Notices count even without actual receipt, and sale or disposal can proceed when required searches cannot establish identities or addresses. A holder assumes liability for proceeding without written notice when another jurisdiction refuses to release an existing vehicle record. DMV can use outside title data from businesses that acquired vehicles from insurers over unresolved total-loss claims. Those businesses must use qualifying national title records and defend and protect DMV and Virginia against claims from reliance on their information.

Outside requesters pay for Virginia records

People, businesses, and agents outside Virginia can request records to enforce substantially similar vehicle-lien or abandoned-vehicle laws. For Virginia-titled vehicles, they pay $25 per search; DMV provides available owner and lender details and notifies those parties. This search does not replace notices required elsewhere or extend Virginia's enforcement rules to vehicles outside the state. If the vehicle is titled elsewhere, DMV identifies that jurisdiction and has no further duty to the requester or owner.

Vehicle lien sales require paid notices

Before a lien sale, the business holding the vehicle notifies DMV and pays $40; DMV repeats its records search. Identified owners and lenders receive certified notice at their last known addresses, giving 15 days to reclaim and repay. If the vehicle stays unclaimed and the debt unpaid, ownership and secured claims end, subject to required surplus payments. The business provides auction details at least 21 days ahead; DMV posts them for at least 21 days alongside reclamation. Buyers submitting the required certification and application receive a title or requested nonrepairable certificate free of earlier claims. A business owes another $40 per DMV hold removal when it failed to report timely reclamation and repayment. That fee applies when an owner or lender proves repayment and reclamation and asks DMV to remove the hold.

Vehicle searches protect owners before sales

Before enforcing a vehicle lien, the business holding the vehicle must request a Virginia Department of Motor Vehicles (DMV) search. DMV searches state records and national crime and title databases, shares owner and lender information, and reports stolen vehicles. It sends initial notices and holds Virginia vehicle records until reclamation or sale; missing or unavailable records can prevent notice. Businesses or agents making more than five requests in any 12 months must arrange electronic requests and responses. Lien-enforcement and abandoned-vehicle search fees support a special DMV expense fund whose unused money stays in the fund.

Vehicle value sets lien sale rules

DMV normally uses a recognized guide’s trade-in value; businesses holding vehicles can submit independent appraisals and supporting papers. Appraisers must meet licensing and zoning requirements, qualify through another state's appraisal license or insurer authorization, and have no financial interest in the holding business. If trade-in value is unavailable, DMV can approve appraisals or guide-based retail or loan values. An eligible business can sell a vehicle worth $12,500 or less at public auction for cash without a court petition. Values above $12,500 through $25,000 require general district court approval; values above $25,000 require circuit court approval. Sale money first covers the debt and sale costs; surplus goes first to recorded lenders, then the owner. Surplus claims must arrive within 30 days after sale and be paid within 30 days after a timely claim. If no eligible claimant is identified, the business can keep the surplus.

Businesses can title older unclaimed vehicles

A business holding a vehicle can get a DMV title or nonrepairable certificate when its value is $4,500 or less. Its model year must be at least six years before the current model year. The business must prove at least 30 days of continuous custody. DMV's required diligent search must fail to identify any owner, lender, or other secured party. The business can then sell or dispose of the vehicle free of earlier liens and ownership claims.

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

Engrossment reconsidered by Senate

Yes: 40 • No: 0

Senate vote • 2/5/2026

Reading of amendment waived (Voice Vote)

Yes: 0 • 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

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/2/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • 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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