VirginiaSB3982026 Regular SessionSenateWALLET

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

Sponsored By: Russet Perry (Democratic)

Became Law

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

9 provisions identified: 6 benefits, 1 costs, 2 mixed.

Lifelong help for injured infants

Virginia runs a no-fault program that pays for children with birth-related neurological injuries when a participating doctor delivered care or the birth was in a participating hospital. The program pays for medical, rehab, nursing, attendant, residential and custodial care, plus housing help for life, and an adapted vehicle. It can pay private health insurance premiums when required, and covers an education advocate and up to $10,000 a year for family counseling. It pays funeral or cremation costs up to $10,000. At age 18, the child gets loss-of-earnings payments set at 50% of the state average weekly wage through age 65. If a child born on or after July 1, 2003 dies within 180 days, the family may receive up to $500,000 after a hearing. The board cannot set rules that cut, cap, or unreasonably delay these payments to admitted claimants.

Annual fees on providers and insurers

The Fund is financed by yearly assessments. A participating physician pays $5,600 starting in 2009, rising by $300 in 2010 and by $100 each year after to a $6,200 cap. A participating hospital pays $50 per live birth, with scheduled increases up to $55 per birth. Nonparticipating physicians pay $250, then $260 after January 1, 2005, with $10 yearly increases to $300. Liability insurers pay amounts set by the State Corporation Commission based on net direct premiums. Some physicians can certify exemptions, and providers must pay by December 1 to be listed as participating for the next year.

Your legal options for birth injuries

The Program is the exclusive legal remedy for an infant’s birth‑related neurological injury. You may sue a nonparticipating doctor or hospital in court, but filing that suit means you choose that path and cannot also claim under the Program. You may also sue any provider for intentional or willful harm if you have clear and convincing proof and file before a Program award is final or paid. If you sue a participating provider, the court must first send the case to the Workers’ Compensation Commission to check if it meets Program rules. Filing a Program claim pauses the civil lawsuit time limit while the claim is pending. If the Fund pays your claim, it can pursue money from nonparticipating providers, which may affect later recoveries.

State checks on doctors and hospitals

If your claim concerns a participating doctor, the Department of Health Professions must investigate and send cases needing discipline to the Board of Medicine. If your claim concerns a participating hospital, the Department of Health must investigate and act if it sees signs of substandard care. You receive copies of any Board notice or order.

Bidding rules for Program contracts

The board must use Virginia’s public procurement rules for contracts that are not about claimant health care. Businesses can compete for these Program contracts under competitive state bidding standards.

1990 rules apply to older cases

For cases that arose before July 1, 1990, the 1990 amendments apply if the case was filed on time and is not final. This can change the remedies available in those pending older cases.

How the Fund is run and watched

Virginia keeps a dedicated trust Fund to pay awards and run the Program. A board manages investments, hires service companies, can reinsure risks, buys liability insurance, and may settle claims; investment income stays in the Fund. An independent CPA audits the Fund every year and the Auditor of Public Accounts reviews it. Officers handling money must be covered by a blanket surety bond, and directors serve without salary and have limited personal liability. The Program and its board are subject to Virginia’s Freedom of Information Act. The Attorney General’s Office can represent the Program, with reasonable hourly fees paid from the Fund.

Who sits on the Program board

A nine‑member board runs the Program. The Governor appoints six citizen members and one each for participating physicians, hospitals, and insurers. Directors serve three‑year terms under the statute’s nomination and regional rules.

How to file a birth-injury claim

You must file your petition electronically and include the infant’s and representative’s details, doctors and hospital, medical records, and bills. A $15 filing fee applies, and you must provide copies for service. If you cannot e-file, you may submit a paper petition with Commission approval. After you give written notice you plan to file, the hospital must quickly give you all infant records, including fetal monitoring strips. The Program must answer within 10 days after the panel report and within 21 days for fee or benefit disputes. The Commission sets a hearing 15–90 days after the Program’s response, near where the injury happened; the parties are you and the Program. You can use discovery (questions, documents, depositions) if you show it is material; costs can count as claim expenses. If the Program unreasonably delays payment, interest at the judgment rate is added from the date you first asked for payment. Provider and malpractice insurer attorney fees are not paid from awards. The plan approved by the SCC also requires prompt acknowledgements, timely payments, and a secure HIPAA‑compliant portal; the Fund pays to build and maintain e‑filing.

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

Senate vote 4/22/2026

Senate concurred in Governor's recommendation

Yes: 39 • No: 0

House vote 4/22/2026

House concurred in Governor's recommendation

Yes: 98 • No: 0

Senate vote 3/14/2026

Conference report agreed to by Senate

Yes: 39 • No: 0

House vote 3/14/2026

Conference report agreed to by House

Yes: 95 • 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

Finance and Appropriations Substitute agreed to

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

Commerce and Labor Amendment rejected

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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