The bill amends Chapter 10-3 of the General Laws, titled "Arbitration," to improve the clarity and enforceability of arbitration agreements. Key provisions include the insertion of language that exempts arbitration agreements governed by federal law (9 U.S.C. §§ 1 through 16) from the chapter's regulations. The notice period for a party to apply for a stay of arbitration is extended from twenty days to one hundred eighty days. Additionally, any notice regarding the intention to arbitrate must clearly highlight the rights being waived if a party fails to apply for a stay, with this information required to be in bold print.

Further amendments introduce new rights and obligations for parties involved in arbitration, particularly in employment and consumer contexts. The drafting party must pay certain fees and costs upfront, with a failure to do so within thirty days resulting in a default that can lead to a material breach of the arbitration agreement. The bill allows the aggrieved party to withdraw their claim from arbitration and pursue it in court if the drafting party defaults. It also invalidates any provisions that penalize a party for hiring legal representation during arbitration, reinforcing the right to legal counsel. These changes are set to take effect on January 1, 2026, and aim to enhance fairness and accountability in arbitration processes.