2025 General Assembly Session

HB 1715 (Watts) / SB 939 (Salim) Mail Theft Penalty

Creates a state-level felony crime for the theft of mail, packages or mail keys. In an effort to reduce the instances of checks obtained through stolen mail and used to commit fraud, the bill would authorize local law enforcement and prosecutors to go after these criminals. The VBA has worked with the US Postal Inspector for Virginia on the bills and supports their passage. Both bills passed the House unanimously and with only a dissenting vote in the Senate. They now head to the Govenor for his action.

HB 2120 (Maldonado) / SB 825 (Favola) Elder Financial Abuse Asset Seizure

Establishes a procedure for law enforcement to seize property, including bank account funds, used in connection with suspected elder financial exploitation crimes. This would allow law enforcement to quickly stem the outflow of money and assets fraudulently obtained through elder financial exploitation. The VBA supports these bills and has testified to that on both bills. SB 825 cleared the Senate 40-0 but was not heard by the House Courts Committee before the end of session. However, HB 2120 was resolved in a committee of conference, extending existing asset seizure processes to elder financial exploitation crimes and allowing the victim to petition the court, as well as the prosecutor, to have funds seized during the investigation. The final version was approved unanimously by both chambers last Friday and awaits action by the Governor.

HB 1600, Item 261 #1h (Sewell) Credit Union Public Deposits

Amends Virginia’s budget to create a pilot program under the Treasury Department for low-income designated credit unions to hold public deposits. Well over half of all credit unions in Virginia have that designation, including multi-billion-dollar Virginia Credit Union and Northwest Credit Union (who paid for the Commander’s stadium naming rights). The VBA will strongly oppose any attempt for credit unions to hold public deposits. The amendment was NOT included in the House budget that passed the House nor in a final budget plan adopted on the final day of session.

HB 2094 (Maldonado) AI Regulation

Creates comprehensive anti-discrimination regulations over the development and deployment of artificial intelligence including requiring disclosure, impact assessments and adverse decision appeals when AI is used for consequential decisioning, including for financial services. Banks are already subject to anti-discrimination and risk management laws and regulations regardless of the use of AI and subject to existing and evolving regulatory and supervisory regulation and guidance on the use of AI. Delegate Maldonado understands this and has included language meant to avoid additional burdens. The final version of the bill passed the Senate 21-19 and House 52-46, raising the probability of amendments or a veto by the Governor.

HB 2073 (Garrett) / SB 1453 (Sturtevant) Debanking

Would prohibit banks from discriminating against customers on the basis of their political opinions, religious beliefs and affiliations, and any other factor other than a quantitative, impartial, and risk-based standard. It also prohibits the use of “social credit scores” based on gun ownership, fossil fuel business, position on illegal immigration and other ESG and DEI subjective measures. This is government intrusion into the decision-making by a bank on the customers it chooses to serve or not based on their risk assessment, which is why the VBA is opposed. HB 2073 was amended in Subcommittee to create a definition of “debanking” and require banks that receive consumer allegations of it to the Bureau of Financial Institutions. The VBA voiced our continued opposition, and the bill was defeated on a 4-3 vote. SB 1453 failed in the Senate Commerce & Labor Committee 9-6.

SB 1452 (Sturtevant) Assumable Mortgages

Would allow all existing and future mortgages to be assumed by the buyer if the purchaser is “determined to be creditworthy under generally accepted mortgage underwriting standards.” The proposal does not provide a definition or clarity on those standards and who determines them, would seemingly undercut consumer anti-discrimination lending laws and secondary mortgage market rules, potentially voids existing mortgage note restrictions on transfers, and injects unnecessary risk into the home lending market. The VBA – along with mortgage bankers, realtors and others – opposed the bill and the Senate General Laws and Technology Committee unanimously rejected it.

SB 1430 (Rouse) Government Shutdown Foreclosure Stay

Amends existing law allowing furloughed federal workers and contractors impacted by a federal government shutdown to request a stay on foreclosure. The bill removes the current 14-day requirement of a shutdown before an impacted Virginia can request the stay and extends the length of the stay from the current 30 days to 60 days. The bill contains an emergency clause, meaning it would be effective upon the Governor’s signature – important with the pending March 14^th deadline on federal government funding. The bill passed the House 82-14 and Senate 40-0 and awaits action by the Governor.