VirginiaSB2272026 Regular SessionSenateWALLET

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

Sponsored By: Scott A. Surovell (Democratic)

Became Law

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.

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

5 provisions identified: 5 benefits, 0 costs, 0 mixed.

Fair, neutral arbitrator selection in Virginia

Beginning July 1, 2026, big arbitration providers in Virginia cases cannot force you to accept a specific arbitrator. They must give both sides a fair way to pick, like striking, ranking, or random selection, if you cannot agree. Proposed arbitrators must disclose possible bias, including ties to a party and results of past cases from the last five years. A provider also cannot run the case if any party or that party’s law firm had financial ties to the provider in the past five years. If selection breaks these rules, you can ask a circuit court to stop it or to vacate the award.

Stronger fee rules in arbitration

Beginning July 1, 2026, if the party who wrote the arbitration clause must pay fees before the case can proceed and does not pay within 30 days of the due date, they breach the contract, default the arbitration, and waive the right to force arbitration. You may then withdraw and sue in court, or keep arbitrating with the drafter paying your reasonable attorney fees and costs. Courts also impose sanctions on the drafter if you proceed in court. After you file, the provider must send all sides the same-day, same-method invoice showing the full amount due, the due date, and expected future charges; if the contract sets no timeframe, payment is due when the invoice is received.

Time limits paused during arbitration

Beginning July 1, 2026, when you send a written demand to start arbitration on a Virginia-connected dispute, the time limit to sue pauses. It stays paused until 90 days after the arbitration ends. If you move the claim to court, extra tolling rules protect related claims and timing.

Virginia arbitration rules baked into contracts

Beginning July 1, 2026, these protections are material terms in any pre-dispute arbitration agreement under Virginia contract law. The rules apply to agreements signed on or after July 1, 2026; earlier agreements are not covered. The law also defines who and what is covered, including high‑volume providers (more than 100 Virginia‑connected arbitrations a year) and Virginia‑connected transactions.

State reporting and fines for big providers

Beginning July 1, 2026, high‑volume arbitration providers must file a yearly report to the State Corporation Commission showing how many Virginia‑connected cases they handled and how arbitrators were picked, plus any stats they collect. The Commission can fine providers up to $10,000 per violation when they break these rules.

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: 97 • No: 0

House vote 3/4/2026

Passed House with amendments Block Vote

Yes: 99 • 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

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote 1/26/2026

Courts of Justice Substitute agreed to

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

Related Bills

Back to State Legislation