VermontS.3262025-2026 SessionSenateWALLET

An act relating to miscellaneous amendments to laws relating to motor vehicles

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

16 provisions identified: 5 benefits, 8 costs, 3 mixed.

Smugglers' Notch drivers face steep fines

Beginning July 1, 2026, violating the vehicle-operation ban at Smugglers' Notch carries a $10,000 civil penalty, up from $1,000. The penalty rises from $2,000 to $20,000 when a violation substantially blocks traffic on Vermont Route 108. A second or later conviction within three years doubles the applicable penalty. The penalty rules cover personal and work-related driving and also identify employers of drivers acting within their jobs. The transportation agency must update approach signs to explain the restrictions and penalties.

Simpler damaged-car transfers and replacement titles

Beginning July 1, 2026, ownership documents transferring a damaged vehicle to its insurer do not need notarization. After paying damages, insurers can use electronic signatures with secure authentication meeting at least NIST level 2 standards. Documents can be printed, and insurers must cover claims against the Department arising from titles issued using compliant documents. Replacement titles for lost, stolen, damaged, destroyed, or unreadable originals go to the first lienholder, or the owner without one. They are mailed or can be handed to the recipient at a Department location.

Small kei vehicles gain road protections

Beginning July 1, 2026, local governments and Vermont's Traffic Committee cannot bar qualifying kei vehicles from comparable roads and uses. A qualifying vehicle has four wheels and an engine no larger than 660 cubic centimeters. Maximum dimensions are 130 inches long, 78 inches high, and 60 inches wide. Kei vehicles registered as pleasure cars receive the same treatment as other pleasure cars. Kei trucks designed, used, or maintained mainly to carry property receive comparable farm-truck treatment when registered as farm trucks.

Vehicle inspections focus on immediate dangers

Beginning July 1, 2026, the Department must revise the inspection manual to limit failures to immediate safety risks identified by the Commissioner. The manual must also warn owners about future safety risks and provide clearer visual guidance. The Department must review tires, steering, suspension, brake rotors, lighting, electrical parts, windshields, windows, wipers, and vehicle bodies. It must consider changing or removing inspection items, including other components selected by the Commissioner. Proposed inspection rule amendments must be filed by August 1, 2026.

Emergency workers gain heavy-vehicle driving exemption

Beginning July 1, 2026, state and municipal employees can drive commercial vehicles weighing at least 26,001 pounds without a commercial license during qualifying emergencies. The Governor must declare an emergency involving significant risks to public health, safety, infrastructure, or property and expressly allow this driving. Employees must perform official emergency-government work and hold a valid regular driver's license from Vermont or another state. The exemption lasts only while the emergency or condition continues.

Boaters get cold-weather life jacket information

The Department of Public Safety must develop and launch a life jacket education campaign by September 30, 2026. Working with federal and state partners, it must explain the seasonal flotation-device requirements for November 1 through May 1. The campaign must include online and written information.

Boat owners must place stickers precisely

Beginning July 1, 2026, Vermont-registered motorboats must display validation stickers in specified locations. On the port side, place the sticker within six inches before the registration number. On the starboard side, place it within six inches after the number.

Drivers cannot alter or obscure plates

Beginning July 1, 2026, you cannot color, tint, or otherwise change a plate's letters, numbers, or background. The plate must keep its appearance as issued. You also cannot cover or obscure its letters or numbers with material or substances, unless another law allows it.

Failed vehicle payments trigger license suspensions

Beginning July 1, 2026, dishonored-payment rules cover electronic transfers and credit or debit charges, as well as checks. The Department of Motor Vehicles sends a nonpayment notice. If you do not promptly pay, the Commissioner must suspend your license or registration until full settlement. Settlement includes required taxes, interest, fees, and penalties. The Department can require cash or certified checks from people with suspended credentials or repeated dishonored payments.

Motorcycles need noise-reducing exhaust equipment

Beginning July 1, 2026, motorcycles used on highways need a muffler or another mechanical device designed to reduce noise. Missing internal baffles, cutouts, bypasses, noncompliant mufflers, and straight pipes without noise reduction violate the law and cause inspection failure. Mechanics must presume federal compliance when a muffler's position prevents a reasonable check for its compliance label. The equipment rules do not apply during races, contests, or demonstrations at authorized public exhibitions held under state and local laws.

Electronic temporary registration provision is repealed

Beginning July 1, 2026, the law repeals the statutory provision for electronically issuing temporary plates and temporary registrations. The supplied text does not identify replacement procedures or establish which issuance methods remain available.

Commercial drivers face texting limits

Beginning July 1, 2026, commercial vehicle operators cannot text while driving on Vermont public highways or other places open to traffic. Hands-free use, including activating or turning off hands-free equipment, remains allowed. The law also permits qualifying manufacturer-installed or securely mounted navigation systems and messages to law enforcement or emergency services. The ban does not apply when a vehicle is safely and legally stopped off the public highway.

Airport tax records allow limited sharing

Beginning July 1, 2026, Vermont's tax commissioner can share airport-related tax returns or return information with the transportation agency. Records must concern tax revenue generated on Vermont airport premises. Sharing must be necessary to demonstrate compliance with federal airport grant rules on airport revenue. The Commissioner sets conditions, and applicable Internal Revenue Service confidentiality requirements still apply. This provision does not itself change tax bills or benefits.

Nondriver IDs come with renewal rules

Beginning July 1, 2026, Vermont residents without a driver's license can apply for a nondriver photo ID. Minors need parental consent. Applicants with a valid Vermont license must surrender it and receive a reduced ID fee. You cannot hold both credentials at once. Cardholders must renew in person for an updated photo at least every nine years; other renewals can use mail.

Specialty cars get limited-use registration

Beginning July 1, 2026, limited-use specialty registration costs $26 yearly, with no more than 12 additional certificates issued each year. Vehicles must come from manufacturers making at most 325 vehicles yearly for U.S. sale, or individuals building them without resale. Vehicles must be kept solely for occasional transportation and public-interest uses, including exhibitions, club events, and parades. They cannot have another registration or serve daily highway travel; occasional passenger or property trips are limited to one day weekly. Annual safety and visual emissions inspections remain required, but onboard diagnostic systems inspections are not.

Commercial drivers pay set license fees

Beginning July 1, 2026, commercial driver's licenses cost $108 for four years or $72 for two years. A one-year nondomiciled commercial driver's license costs $40. Total fees can be reduced when an applicant surrenders a valid Vermont Class D license.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Senate Message: Signed by Governor June 16, 2026

    5/29/2026Senate
  2. Signed by Governor on June 16, 2026

    5/29/2026Senate
  3. Delivered to Governor on June 10, 2026

    5/29/2026Senate
  4. As passed by Senate and House

    5/26/2026Senate
  5. House message: House concurred in Senate proposal of amendment to House proposal of amendment

    5/26/2026House
  6. Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney

    5/26/2026House
  7. Senate proposal of amendment to House proposal of amendment concurred in

    5/26/2026House
  8. Rules suspended and taken up for immediate consideration as moved by Rep. McCoy of Poultney

    5/26/2026House
  9. Notice Calendar: Senate Proposal of Amendment to House Proposal of Amendment

    5/26/2026House
  10. Senate Message: House proposal of amendment concurred in with further proposal of amendment thereto

    5/22/2026Senate
  11. Rules suspended & messaged to House forthwith, on motion of Senator Baruth

    5/22/2026Senate
  12. House proposal of amendment concurred in with further proposal of amendment as moved by Senator(s) Westman

    5/22/2026Senate
  13. House proposal of amendment; text

    5/22/2026Senate
  14. House proposal of amendment

    5/22/2026Senate
  15. House proposal of amendment

    5/21/2026Senate
  16. Entered on Notice Calendar

    5/21/2026Senate
  17. House message: House passed bill in concurrence with proposal(s) of amendment

    5/21/2026House
  18. Rules suspended and bill messaged forthwith to the Senate as moved by Rep. McCoy of Poultney

    5/20/2026House
  19. Read third time and passed in concurrence with proposal of amendment

    5/20/2026House
  20. Rep. Noyes of Wolcott asked and was granted leave to withdraw amendment

    5/20/2026House
  21. Rep. Noyes of Wolcott moved to amend the House proposal of amendment

    5/20/2026House
  22. Rep. Tomlinson of Winooski moved to amend the House proposal of amendment, which was agreed to

    5/20/2026House
  23. Rep. Burke of Brattleboro moved to amend the House proposal of amendment, which was agreed to

    5/20/2026House
  24. Action Calendar: Third Reading

    5/20/2026House
  25. Third Reading ordered

    5/19/2026House

Bill Text

  • As Enacted (ACT 153)Opens in a new window

    6/19/2026

  • As Passed by Both Chambers

    6/4/2026

  • As Passed by Both Chambers (Unofficial)

    6/4/2026

  • House Proposal of Amendment

    5/21/2026

  • House Proposal of Amendment (Unofficial)

    5/21/2026

  • As Passed by the Senate

    3/26/2026

  • As Passed by the Senate (Unofficial)

    3/26/2026

  • As Introduced

    1/29/2026

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