2023 LEGISLATIVE UPDATE From franchise system protections and untaxed diagnostic labor to home solicitation rules and a study on loud exhaust systems, 2023 will go down as a history-making and successful year for Virginia dealers in the General Assembly. VADA entered 2023 with a groundbreaking bill to protect dealers and consumers against auto manufacturercontrolled sales processes. This “agency” model removes local incentive for investment, hurts competition, and takes away local advocates for consumers in need of automotive sales or services. The bills introduced by VADA prohibit such behaviors in franchise agreements, continuing the current practices of dealers selling cars and trucks and offering financing options, extended service contracts, and ancillary products. The legislation also makes additional changes to strengthen the franchise system. Why 2023 Was a Successful Legislative Session For Virginia Dealers VADA’s franchise bills, House Bill 1469 and Senate Bill 871, sped through their respective chambers. The House version, sponsored by Del. Jay Leftwich, R-Chesapeake, was the first bill to pass both chambers — out of thousands of other bills under consideration, receiving unanimous support from both the House and Senate. The Senate version, sponsored by Sen. Scott Surovell, D-Mount Vernon, followed closely after. The bills then went to Governor Glenn Youngkin for signing into law. Beyond this precedent-setting bill, here is a recap of other legislation VADA monitored either with support or opposition. Passed Legislation HB 2372 (Wyatt)/SB 1135 (McDougle): Gives judge or jury permissive inference that possession of a catalytic converter that has been removed is a violation of a Class 6 felony. There are carveouts for motor vehicle dealers, repair shops, and salvage yards. The bill further states that if you sell or offer for 6 Virginia Auto Dealer
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