VirginiaSB2272026 Regular SessionSenateWALLET

Arbitration; high-volume service providers, selection of arbitrator, civil remedies.

Sponsored By: Scott A. Surovell (Democratic)

Signed by Governor

Summary

Arbitration; high-volume arbitration service providers; selection of arbitrator; civil remedies. Requires a high-volume arbitration service provider, defined in the bill as a person or entity that administers, facilitates, or provides arbitration services in the Commonwealth and that conducts more than 100 arbitrations per year that arise from a pre-dispute arbitration agreement involving a Virginia-connected transaction, to establish and maintain certain procedures related to the selection of an arbitrator. Under the bill, a party aggrieved by a high-volume arbitration service provider that has failed to comply with such requirements may seek injunctive relief or other appropriate civil remedy or make an application with a circuit court to vacate an arbitration award in accordance with current law. The bill also requires all high-volume arbitration service providers to report information related to certain arbitrations annually with the State Corporation Commission and permits the Commission to impose a $10,000 civil penalty per violation on high-volume arbitration service providers who fail to comply with the provisions of the bill. Finally, the bill provides that these provisions shall apply to arbitration agreements entered into on or after July 1, 2026.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 4 benefits, 0 costs, 0 mixed.

Court relief backs fair arbitration rules

For agreements entered into on or after July 1, 2026, the law’s protections become key contract terms under Virginia contract law. Parties facing unlawful arbitrator selection can seek a court order or other civil relief where arbitration occurs or in Richmond Circuit Court. After a hearing and award, they can ask the court to set aside the award for unlawful selection. Covered high-volume providers must report annually to Virginia’s State Corporation Commission on case totals, selection methods, and any collected selection-outcome and satisfaction data. The Commission enforces compliance and may fine providers up to $10,000 per violation; fines are not direct household payments.

Fairer arbitration for consumers and workers

The law covers agreements signed before a dispute arises, entered into on or after July 1, 2026. Its provider rules cover services handling more than 100 Virginia-connected arbitrations per calendar year under these agreements. Providers cannot force a particular arbitrator on either side; both sides get a meaningful chance to agree. Without agreement, selection must be fair and open, giving each side an equal voice. Proposed arbitrators must disclose possible bias, financial or work ties, and parties, outcomes, and damages from arbitrations during the past five years. Private individuals may be identified by their role rather than name. Providers cannot handle cases if a party or its law firm has a financial interest now or within the past five years. This includes ownership, employment, or paid work as an arbitrator or other neutral.

Fee protections for consumers and workers

For covered agreements entered into on or after July 1, 2026, providers must immediately send a complete invoice after filing requirements are met. Everyone receives it on the same day, by the same method, showing the amount, due date, and estimated future charges. Unless the agreement sets a payment period, payment is due upon receipt. A business that drafts or relies on the clause loses its right to force arbitration if required starting costs remain unpaid 30 days after their due date. This applies when payment is required by the agreement, law, or provider rules before arbitration can proceed. The consumer or worker can sue instead, or continue arbitration with the business paying reasonable related attorney fees and costs. Courts must impose sanctions on the business if the consumer brings a court action.

More time to protect arbitration claims

For covered agreements entered into on or after July 1, 2026, the law pauses deadlines for Virginia-connected claims. The legal time limit pauses when a written arbitration demand is sent to the arbitrator. It stays paused until 90 days after arbitration ends. Additional protection covers related claims when the party that did not draft the agreement withdraws from arbitration and proceeds in court. A timely related lawsuit also pauses an agreement’s deadline for demanding arbitration. That rule includes a 30-day period tied to a final court decision requiring arbitration or final termination of the court case.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 359 • No: 1

Senate vote • 3/6/2026

House amendments agreed to by Senate

Yes: 40 • No: 0

House vote • 3/4/2026

Passed House with amendments Block Vote

Yes: 99 • No: 0

House vote • 3/4/2026

Passed House with amendments Block Vote

Yes: 97 • No: 0

House vote • 3/2/2026

Reported from Courts of Justice with amendment(s)

Yes: 22 • No: 0

House vote • 2/18/2026

Subcommittee recommends reporting

Yes: 10 • No: 0

Senate vote • 1/27/2026

Read third time and passed Senate

Yes: 38 • No: 0

Senate vote • 1/26/2026

Courts of Justice Substitute agreed to

Yes: 0 • No: 0

Senate vote • 1/26/2026

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote • 1/23/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 1/23/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 39 • No: 0

Senate vote • 1/21/2026

Reported from Courts of Justice with substitute

Yes: 14 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0490)

    4/8/2026Governor
  2. Approved by Governor-Chapter 490 (effective 7/1/2026)

    4/8/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/14/2026Governor
  4. Enrolled Bill communicated to Governor on March 14, 2026

    3/14/2026Senate
  5. Fiscal Impact Statement from Department of Planning and Budget (SB227)

    3/12/2026Senate
  6. Bill text as passed Senate and House (SB227ER)

    3/12/2026Senate
  7. Enrolled

    3/12/2026Senate
  8. Signed by President

    3/12/2026Senate
  9. Signed by Speaker

    3/12/2026House
  10. House amendments agreed to by Senate (40-Y 0-N 0-A)

    3/6/2026Senate
  11. Passed House with amendments Block Vote (99-Y 0-N 0-A)

    3/4/2026House
  12. Reconsideration of passage agreed to by House

    3/4/2026House
  13. Passed House with amendments Block Vote (97-Y 0-N 0-A)

    3/4/2026House
  14. Engrossed by House as amended

    3/4/2026House
  15. committee amendments agreed to

    3/4/2026House
  16. Read third time

    3/4/2026House
  17. Read second time

    3/3/2026House
  18. Reported from Courts of Justice with amendment(s) (22-Y 0-N)

    3/2/2026House
  19. Subcommittee recommends reporting (10-Y 0-N)

    2/18/2026House
  20. Assigned HCJ sub: Civil

    2/17/2026House
  21. Referred to Committee for Courts of Justice

    2/3/2026House
  22. Read first time

    2/3/2026House
  23. Placed on Calendar

    2/3/2026House
  24. Fiscal Impact Statement from Department of Planning and Budget (SB227)

    1/28/2026Senate
  25. Read third time and passed Senate (38-Y 0-N 0-A)

    1/27/2026Senate

Bill Text

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