HB1386 • 2026

Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.

An Act to amend and reenact § 46.2-1527.3 of the Code of Virginia, relating to Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Wyatt
Last action: 2026-04-13
Official status: Acts of Assembly Chapter
Effective date: Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.

What This Bill Does

Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.
Authorizes any person who is awarded a final judgment in a court of competent jurisdiction in the Commonwealth for any loss or damage resulting from a breach of an extended service contract for a motor vehicle to recover the unpaid amount on the judgment from the Motor Vehicle Transaction Recovery Fund, subject to certain limitations.

Limits and Unknowns

This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB1386AHC1

2026-02-10

Transportation Amendment

Plain English: OFFERED FOR CONSIDERATION 2/10/2026 HB 1386 SUBCOMMITTEE 1.

OFFERED FOR CONSIDERATION 2/10/2026 HB 1386 SUBCOMMITTEE 1.
Line 19, introduced, after vehicle insert by a licensed or registered motor vehicle dealer participating in the Motor Vehicle Transaction Recovery Fund

HB1386AHC2

2026-02-10 • Committee

Department of Motor Vehicles Subcommittee Amendment

Plain English: 2/10/2026 HB 1386 SUBCOMMITTEE 1.

2/10/2026 HB 1386 SUBCOMMITTEE 1.
Line 19, introduced, after vehicle insert by a licensed or registered motor vehicle dealer participating in the Motor Vehicle Transaction Recovery Fund

HB1386AH1

2026-02-12 • Committee

Transportation Amendment

Plain English: 2/12/2026 HB 1386 TRANSPORTATION 1.

2/12/2026 HB 1386 TRANSPORTATION 1.
Line 19, introduced, after vehicle insert by a licensed or registered motor vehicle dealer participating in the Motor Vehicle Transaction Recovery Fund

Bill History

2026-04-13 Governor
Approved by Governor-Chapter 837 (effective 7/1/2026)
2026-04-13 Governor
Acts of Assembly Chapter text (CHAP0837)
2026-04-13 Governor
Acts of Assembly Chapter text (CHAP0837)
2026-04-01 House
Fiscal Impact Statement from Department of Planning and Budget (HB1386)
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Signed by Speaker
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-30 Senate
Signed by President
2026-03-30 House
Enrolled
2026-03-30 House
Bill text as passed House and Senate (HB1386ER)
2026-03-10 Senate
Read third time
2026-03-10 Senate
Read third time
2026-03-10 Senate
Passed Senate Block Vote (40-Y 0-N 0-A)
2026-03-10 Senate
Passed Senate with substitute Block Vote (40-Y 0-N 0-A)
2026-03-09 Senate
Rules suspended
2026-03-09 Senate
Passed by for the day
2026-03-09 Senate
Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)
2026-03-09 Senate
Passed by for the day Block Vote (Voice Vote)
2026-03-06 Finance and Appropriations
Reported from Finance and Appropriations (14-Y 0-N)
2026-02-26 Transportation
Reported from Transportation and rereferred to Finance and Appropriations (14-Y 0-N)
2026-02-18 Senate
Constitutional reading dispensed (on 1st reading)
2026-02-18 Transportation
Referred to Committee on Transportation
2026-02-17 House
Read third time and passed House Block Vote (97-Y 0-N 0-A)
2026-02-17 House
Fiscal Impact Statement from Department of Planning and Budget (HB1386)
2026-02-16 House
Read second time
2026-02-16 House
committee amendment agreed to
2026-02-16 House
Engrossed by House as amended
2026-02-15 House
Read first time
2026-02-12 Transportation
Reported from Transportation with amendment(s) (21-Y 0-N)
2026-02-10 Department of Motor Vehicles
Subcommittee recommends reporting with amendment(s) (6-Y 3-N)
2026-02-10 Department of Motor Vehicles
House subcommittee offered
2026-02-04 House
Fiscal Impact Statement from Department of Planning and Budget (HB1386)
2026-01-29 Department of Motor Vehicles
Assigned HTRAN sub: Department of Motor Vehicles
2026-01-21 House
Presented and ordered printed 26105658D
2026-01-21 Transportation
Referred to Committee on Transportation

Official Summary Text

Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.
Authorizes any person who is awarded a final judgment in a court of competent jurisdiction in the Commonwealth for any loss or damage resulting from a breach of an extended service contract for a motor vehicle to recover the unpaid amount on the judgment from the Motor Vehicle Transaction Recovery Fund, subject to certain limitations.

Current Bill Text

Read the full stored bill text

An Act to amend and reenact §
46.2-1527.3
of the Code of Virginia, relating to Motor Vehicle Transaction Recovery Fund; recovery for breach of extended service contracts.
Be it enacted by the General Assembly of Virginia:
1. That §
46.2-1527.3
of the Code of Virginia is amended and reenacted as follows:
§
46.2-1527.3
. Recovery from Fund, generally.
Except as otherwise provided in this chapter, whenever any person is awarded a final judgment in a court of competent jurisdiction in the Commonwealth for (i) any loss or damage in connection with the purchase or lease of a motor vehicle by reason of any fraud practiced on him or fraudulent representation made to him by a licensed or registered motor vehicle dealer participating in the Motor Vehicle Transaction Recovery Fund or one of a dealer's salespersons acting for the dealer or within the scope of his employment
or
;
(ii) any loss or damage by reason of the violation by a dealer or salesperson participating in the Motor Vehicle Transaction Recovery Fund of any of the provisions of this chapter
,
; or (iii) any loss or damage resulting from a breach of an extended service contract, as that term is defined in §
59.1-435
, for a motor vehicle

by a licensed or registered motor vehicle dealer participating in the Motor Vehicle Transaction Recovery Fund,
the judgment creditor may file a verified claim with the Board, requesting payment from the Fund of the amount unpaid on the judgment subject to the following conditions:
1. The claim shall be filed with the Board no sooner than 30 days and no later than 12 months after the judgment becomes final along with the evidence of compliance with subdivision 3 below.
2. The Board shall consider for payment claims submitted by retail purchasers of motor vehicles, and for purchases of motor vehicles by licensed or registered motor vehicle dealers who contribute to the Fund. The Board shall also consider for payment claims submitted by lessees of motor vehicles leased from licensed or registered motor vehicle dealers who contribute to the Fund.
3. If the final judgment from a court of competent jurisdiction includes, as part of the judgment, an award of attorney fees and court costs, the Fund may include those in its payment of the claim if (i) the claimant had previously submitted to the trial court a detailed and itemized affidavit by counsel for the judgment creditor seeking such fees and costs, including a breakdown of the hours worked and the subject matter of those hours; (ii) said itemized affidavit formed the basis of the court's award of such fees; and (iii) a copy of such affidavit is provided to the Board with the judgment creditor's claim. If the award of attorney fees and costs by the trial court was not based on a detailed and itemized affidavit from counsel for the judgment creditor with a breakdown of the hours worked, then the Board may review and limit any claim for attorney fees to those attorney fees directly attributable to that portion of the final judgment that is determined to be a compensable claim by the Board against the Fund, and the Board may require a detailed itemization from counsel before considering such claim for attorney fees.