VirginiaSB3982026 Regular SessionSenateWALLET

Virginia Birth-Related Neurological Injury Compensation Program and Fund; filing of claims.

Sponsored By: Russet Perry (Democratic)

Signed by Governor

Summary

Virginia Birth-Related Neurological Injury Compensation Program and Fund; board of directors; plan of operation; filing of claims; awards and coverage for expenses or services. Makes various changes to the Virginia Birth-Related Neurological Injury Compensation Program and Fund. The bill provides that a civil action arising out of or related to a birth-related neurological injury against a participating hospital or physician shall be referred to the Virginia Workers' Compensation Commission. Under the bill, the costs of the Virginia Workers' Compensation Commission maintaining an electronic filing system for the submission of petitions shall be reimbursed from the Fund. Under the bill, the Auditor of Public Accounts shall receive and review any audit conducted on the accounts of the Fund. The bill includes compensation for services provided by an education advocate. The bill requires the Program's board of directors to include a relative of a current or former beneficiary, allows for the electronic submission of claims, and expands discovery of parties to a claim. The bill further requires the Program's board of directors to establish a blanket surety bonding program for all employees with access to the Fund and requires the board to meet at least once monthly. Finally, the bill increases from $100,000 to $500,000 the amount that may be awarded to families whose infant has sustained a birth-related neurological injury. This bill incorporates SB 434 and is identical to HB 1007.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 3 benefits, 2 costs, 2 mixed.

Higher family awards after infant death

The law raises the maximum family death award from $100,000 to $500,000, on top of other program compensation. The birth must occur on or after July 1, 2003, and involve a participating doctor or hospital. The infant must suffer a birth-related neurological injury and die within 180 days of birth. The Virginia Workers’ Compensation Commission decides whether to award this money after a hearing; payment is not guaranteed.

More paid care by family members

The birth injury program can reimburse nursing, attendant, residential, and custodial care provided by a relative or legal guardian. The law removes the former exclusion for care considered part of ordinary unpaid child-care duties. The person receiving care must be a program beneficiary. Payment is allowed, but not automatic.

Stronger birth injury benefit payment protections

The board cannot use rules or policies to end, limit, cap, or unreasonably delay benefits for admitted claimants. The program’s operating plan must require claim acknowledgment and the start of reimbursement processing within 15 business days of submission. It must provide claim tracking, benefit explanations, denial appeals, reimbursement timelines, timely-payment procedures, and a privacy-protected claims website. The State Corporation Commission must approve the plan. When the Workers’ Compensation Commission finds a payment delay lacked reasonable grounds, it must add judgment-rate interest from the first request date.

Birth injury claim and recovery rules

Birth-related neurological injury lawsuits against participating doctors or hospitals go to the Virginia Workers’ Compensation Commission for review of program requirements. The program board may settle or close compensation claims without approval from the Attorney General or Governor. It does not have to settle any particular claim. After the Fund pays benefits on an accepted claim, it takes over related negligence or malpractice rights against nonparticipating doctors or hospitals.

Fund-paid insurance with family purchase requirements

The Virginia Workers’ Compensation Commission may require families to buy private health insurance when it is more cost-effective than direct medical payments. The Fund pays the premiums or other costs. The cost comparison must include effects on the infant’s family health coverage. If requiring the purchase is unreasonably burdensome, the Commission may instead award the cost of private accident and sickness insurance for the infant.

Families pay birth injury petition fees

Anyone filing a petition under the birth injury program must pay the Virginia Workers’ Compensation Commission $15. The fee applies to each petition filed.

Liability insurers must fund injury benefits

Licensed insurers writing liability insurance in Virginia must pay an assessment into the birth injury Fund for the following year. The law removes the prior condition tying this assessment to a funding shortfall after other assessments. The State Corporation Commission sets the amount, capped at 0.25% of each insurer’s net direct premiums written. Insurers may pass the cost to customers through surcharges or rate increases approved by the Commission.

Sponsors & Cosponsors

Sponsor

  • Russet Perry

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 579 • No: 40

House vote • 4/22/2026

House concurred in Governor's recommendation

Yes: 98 • No: 0

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation

Yes: 39 • No: 0

House vote • 3/14/2026

Conference report agreed to by House

Yes: 95 • No: 0

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 39 • No: 0

Senate vote • 3/3/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote • 2/26/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote • 2/24/2026

Passed House with substitute Block Vote

Yes: 98 • No: 0

House vote • 2/19/2026

Reported from Labor and Commerce with substitute

Yes: 20 • No: 0

Senate vote • 2/10/2026

Commerce and Labor Amendment rejected

Yes: 0 • No: 0

Senate vote • 2/10/2026

Read third time and passed Senate Block Vote

Yes: 40 • No: 0

Senate vote • 2/10/2026

Finance and Appropriations Substitute agreed to

Yes: 0 • No: 0

Senate vote • 2/10/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 40 • No: 0

Senate vote • 2/9/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote • 2/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/5/2026

Reported from Finance and Appropriations with substitute

Yes: 15 • No: 0

Senate vote • 1/26/2026

Reported from Commerce and Labor with amendments and rereferred to Finance and Appropriations

Yes: 15 • No: 0

Actions Timeline

  1. House concurred in Governor's recommendation (98-Y 0-N 0-A)

    4/22/2026House
  2. Senate concurred in Governor's recommendation (39-Y 0-N 0-A)

    4/22/2026Senate
  3. Acts of Assembly Chapter text (CHAP1010)

    4/22/2026Governor
  4. Reenrolled bill text (SB398ER2)

    4/22/2026Senate
  5. Reenrolled

    4/22/2026Senate
  6. Approved by Governor-Chapter 1010 (effective 7/1/2026)

    4/22/2026Governor
  7. Signed by President

    4/22/2026Senate
  8. Signed by Speaker

    4/22/2026House
  9. Governor's recommendation adopted

    4/22/2026Governor
  10. Governor's recommendation received by Senate

    4/13/2026Governor
  11. Fiscal Impact Statement from Department of Planning and Budget (SB398)

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

    3/31/2026Governor
  13. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  14. Signed by Speaker

    3/31/2026House
  15. Bill text as passed Senate and House (SB398ER)

    3/30/2026Senate
  16. Enrolled

    3/30/2026Senate
  17. Signed by President

    3/30/2026Senate
  18. Fiscal Impact Statement from Department of Planning and Budget (SB398)

    3/18/2026Senate
  19. Conference report agreed to by Senate (39-Y 0-N 0-A)

    3/14/2026Senate
  20. Conference report agreed to by House (95-Y 0-N 0-A)

    3/14/2026House
  21. Conference Report released

    3/13/2026
  22. House Conferees: Tran, Sullivan, O'Quinn

    3/5/2026House
  23. Conferees appointed by House

    3/5/2026House
  24. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/3/2026Senate
  25. Senate Conferees: Perry, Surovell, Obenshain

    3/3/2026Senate

Bill Text

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