The 2025 Virginia General Assembly session concluded in May. During this term, legislators passed a variety of bills that will impact financial services. The more significant legislation is summarized below:
Banking
Mail Theft (HB 1715 & SB 939)
This legislation creates the criminal offense of mail theft, punishable as a Class 6 felony. The legislation seeks to address the growing problem of check fraud perpetuated by those who vandalize and gain access to the contents of mail receptacles for the purpose of stealing and forging checks sent in the mail.
Subpoenas for Financial Records (HB 2565 & SB 1010)
To stop a financial institution from delaying production of financial records, this legislation prohibits a financial institution from conditioning compliance with a subpoena for the production of financial records upon the payment of fees for producing such records. While a financial institution cannot delay production, it may impose reasonable charges not to exceed actual costs when it provides the financial records to the requesting party.
The legislation also authorizes a nonparty to a civil proceeding to file a motion to quash a subpoena for such nonparty’s financial records. In practice, a financial institution may have already produced financial records of a nonparty in response to a subpoena before a motion to quash is granted. The legislation protects the financial institution from liability in such instances by providing that nothing in the legislation shall be construed to create a cause of action against a financial institution.
Money Transmitters (HB 1942)
This legislation replaces existing state law that regulates money transmitters with a new framework intended to standardize regulation among all 50 states.
Real Estate
Sale of Real Estate for Delinquent Taxes (HB 2362)
This legislation amends procedures relating to the sale of real estate by a locality to recover delinquent real estate taxes, including the enforcement of tax liens on real estate. The legislation directs that any party with an interest in the real estate, including the trustee and the beneficiary under a deed of trust, should be named as party defendants in the proceeding.
Derelict Buildings: Civil Penalties (HB 2128)
This legislation expands the authority of localities to impose civil penalties of up to $500 per month on the owners of non-residential derelict buildings. Current law limits such civil penalties to residential property.
Electronic Notarial Acts (HB1889)
This legislation specifies that a notary commissioned in Virginia may perform a “notarial act” on a tangible or electronic document while outside Virginia, if it is for use in Virginia and falls under the laws and regulations of the Commonwealth.
This legislation specifies that, for the purposes of notarial acts being performed outside the Commonwealth for use in the Commonwealth, a "notarial act" means an act, whether performed with respect to a tangible or electronic document, that a notary public commissioned in the Commonwealth may perform under the laws and regulations of the Commonwealth.
Civil Procedure and Remedies
General District Courts (SB 1291)
This legislation increases the maximum jurisdictional limit of general district courts for all civil actions from $25,000 to $50,000. Under current law, only civil actions for personal injury or wrongful death have a maximum jurisdictional limit of $50,000.
Covenants Not to Compete (SB 1218)
This legislation prohibits an employer from entering into or enforcing a covenant not to compete with any non-exempt employee. In particular, the legislation expands the category of employees entitled to protection as “low-wage employees” to any employee entitled to overtime pay under the Fair Labor Standards Act regardless of average weekly earnings.
Consumer Protection
Virginia Consumer Protection Act: Prohibited Practices, Mandatory Fees or Surcharges Disclosure (HB 2515 and SB 1212)
This legislation amends the Virginia Consumer Protection Act (VCPA) to prohibit a supplier, in connection with a consumer transaction, from advertising or displaying a price for goods or services without clearly and conspicuously displaying the total price, which shall include all mandatory fees or surcharges, as defined in the bill. (The VCPA exempts banks, credit unions, small loan companies, among others, from its coverage.)
The bill requires a food delivery platform to (a) at the point when a consumer views and selects a vendor or items for purchase, include a clear and conspicuous disclosure of any additional fee or percentage charged, as defined in the bill, and (b) after a consumer selects items for purchase, but before checkout, display a subtotal page that itemizes the price of such selected items and any additional fee or percentage included in the total cost.
The legislation specifies the requirements for compliance with its provisions for certain suppliers and excludes certain fees from its provisions:
- Certain fees charged by motor vehicle dealers, as defined in relevant law
- Fees charged by electric utilities, natural gas utilities, and telecommunications service providers, as those terms are defined in relevant law
- Certain costs associated with real estate settlement services
- The provision of air transportation by air carriers.
Gift Certificates and Prepaid Cards: Fees, Expiration (SB 1371)
This legislation prohibits the imposition of a dormancy fee, an inactivity charge or fee, or a service fee with respect to a gift certificate, defined to include a general use prepaid card, unless certain requirements are met.
The legislation also prohibits the sale or issuance of a gift certificate that is subject to an expiration date that is earlier than five years after the gift certificate was issued or funds were last loaded to the gift certificate.
Trusts
Uniform Trust Codes: Powers of Trustees (HB 2243)
This bill expands certain specific powers of trustees under the Uniform Trust Code, including the power to guarantee loans to a beneficiary or a business enterprise in which the trust or beneficiary has a direct or indirect interest and to pledge trust property in connection with any such guarantees.
The effective date for all legislation described above is July, 1, 2025.
