The bill amends several sections of the General Laws in Chapter 10-3, titled "Arbitration," to enhance the rights of parties involved in arbitration agreements. Key changes include the extension of the time frame for a party to apply for a stay of arbitration from twenty (20) days to one hundred-eighty (180) days. Additionally, the bill specifies that arbitration agreements governed by 9 U.S.C. 1 through 16 are exempt from the provisions of this chapter.

The bill establishes that any provision in an arbitration agreement that penalizes a party for seeking legal representation is null and void. It also requires that if the drafting party fails to pay certain fees and costs to initiate arbitration within thirty (30) days, they will be considered in default. The arbitration provider is mandated to send notice of default to the drafting party, and if the default is not cured within fifteen (15) days, the drafting party is deemed to be in material breach of the arbitration agreement.

The bill outlines that the drafting party may challenge the notice of default by filing an action in court or a motion in arbitration. If the drafting party fails to do so, they waive their right to compel arbitration. This act is set to take effect on January 1, 2026.