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SB565 • 2026

Virginia Contractor Transaction Recovery Fund; claim limits, license threshold amounts.

An Act to amend Chapter 127 and Chapter 133 of the Acts of Assembly of 2025 by adding a second enactment, relating to Virginia Contractor Transaction Recovery Fund; claim limits; license threshold amounts.

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Sturtevant
Last action
2026-04-08
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source does not specify exact amounts of additional funds or provide details about case reopenings beyond eligibility criteria.

Virginia Contractor Transaction Recovery Fund Changes

This law changes rules for people who ask for money from a special fund if they lost money because of bad contractors, expanding eligibility and allowing for case reopenings.

What This Bill Does

  • Expands the rules to include anyone who filed a claim after June 6, 2024, and got it approved by the Board for Contractors.
  • Allows the Board to reopen cases that were closed before July 1, 2025, if they meet new criteria.

Who It Names or Affects

  • People who filed a claim with the Department of Professional and Occupational Regulation after June 6, 2024.
  • The Board for Contractors that reviews these claims.

Terms To Know

Claimant
A person or business that asks for money from a fund because they lost money due to bad contractors.
Virginia Contractor Transaction Recovery Fund
A special fund in Virginia where people can ask for money if they lost money because of bad contractors.

Limits and Unknowns

  • The exact amount of additional funds available is not specified.
  • It's unclear how many cases will be reopened and the impact on the fund.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

SB565AHC1

2026-02-26

General Laws Amendment

Plain English: The amendment allows the Board to review cases of contractors whose claims were finalized before July 1, 2025, and potentially increase their recovery amounts based on new limits.

  • Adds a provision for the Board to reopen cases of eligible claimants whose claims were finalized under previous recovery limits.
  • Allows the Board to apply any additional amounts to these claimants' recoveries according to the new limits effective from July 1, 2025.
  • The exact criteria for determining which cases qualify as 'eligible claimants' are not specified in the amendment text.
  • It is unclear how the Board will determine and apply 'appropriate additional amounts'.
SB565AHC2

2026-02-27 • Committee

Professions/Occupations and Administrative Process Subcommittee Amendment

Plain English: The amendment allows the Board to review cases of contractors whose claims were finalized before July 1, 2025, and potentially increase their recovery amounts based on new limits.

  • Adds a provision for the Board to reopen cases of eligible claimants who had their claims finalized under older recovery limits.
  • Allows the Board to apply any additional amounts to these claimants' recoveries according to the new limits effective from July 1, 2025.
  • The exact criteria for determining which cases qualify as 'eligible claimants' are not specified in the amendment text.
  • It is unclear how the Board will determine and apply the appropriate additional amounts to these claims.
SB565AH1

2026-03-03 • Committee

General Laws Amendment

Plain English: The amendment allows the Board to review cases of contractors whose claims were finalized before July 1, 2025, and potentially increase their recovery amounts based on new limits.

  • Adds a provision for the Board to reopen cases of eligible claimants whose claims were finalized under previous recovery limits.
  • Allows the Board to apply any additional amounts to these claimants' recoveries according to the new limits effective from July 1, 2025.
  • The exact criteria for determining eligibility and the specific details of how the new recovery limits will be applied are not provided in the amendment text.
SB565EDOC

2026-03-06 • House

House Amendment

Plain English: The amendment allows the Board to review cases of contractors whose claims were finalized before July 1, 2025, and potentially increase their recovery amounts based on new limits.

  • Adds a provision for the Board to reopen cases of eligible claimants whose claims were finalized under previous recovery limits.
  • Allows the Board to apply any additional amounts to these claimants' recoveries according to the new limits effective from July 1, 2025.
  • The exact criteria for determining which cases qualify as 'eligible claimants' are not specified in the amendment text.
  • It is unclear how the Board will determine and apply 'appropriate additional amounts'.

Bill History

  1. 2026-04-08 Governor

    Approved by Governor-Chapter 508 (effective 7/1/2026)

  2. 2026-04-08 Governor

    Acts of Assembly Chapter text (CHAP0508)

  3. 2026-04-02 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB565)

  4. 2026-03-31 Senate

    Enrolled Bill communicated to Governor on March 31, 2026

  5. 2026-03-31 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  6. 2026-03-31 House

    Signed by Speaker

  7. 2026-03-31 Senate

    Enrolled Bill communicated to Governor on March 31, 2026

  8. 2026-03-31 Governor

    Governor's Action Deadline 11:59 p.m., April 13, 2026

  9. 2026-03-30 Senate

    Signed by President

  10. 2026-03-30 Senate

    Enrolled

  11. 2026-03-30 Senate

    Bill text as passed Senate and House (SB565ER)

  12. 2026-03-10 Senate

    House amendment agreed to by Senate (40-Y 0-N 0-A)

  13. 2026-03-06 House

    Read third time

  14. 2026-03-06 House

    committee amendment agreed to

  15. 2026-03-06 House

    Engrossed by House as amended

  16. 2026-03-06 House

    Passed House with amendment Block Vote (97-Y 0-N 0-A)

  17. 2026-03-05 House

    Read second time

  18. 2026-03-03 General Laws

    Reported from General Laws with amendment(s) (21-Y 0-N)

  19. 2026-02-26 Professions/Occupations and Administrative Process

    Subcommittee recommends reporting with amendment(s) (8-Y 0-N)

  20. 2026-02-26 Professions/Occupations and Administrative Process

    House subcommittee offered

  21. 2026-02-25 Professions/Occupations and Administrative Process

    Assigned HGL sub: Professions/Occupations and Administrative Process

  22. 2026-02-24 House

    Placed on Calendar

  23. 2026-02-24 House

    Read first time

  24. 2026-02-24 General Laws

    Referred to Committee on General Laws

  25. 2026-02-17 Senate

    Read third time and passed Senate (40-Y 0-N 0-A)

  26. 2026-02-16 Senate

    Read second time

  27. 2026-02-16 Senate

    Engrossed by Senate (Voice Vote)

  28. 2026-02-13 Senate

    Rules suspended

  29. 2026-02-13 Senate

    Passed by for the day

  30. 2026-02-13 Senate

    Constitutional reading dispensed Block Vote (on 1st reading) (36-Y 0-N 0-A)

  31. 2026-02-13 Senate

    Passed by for the day Block Vote (Voice Vote)

  32. 2026-02-13 Senate

    Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)

  33. 2026-02-13 Senate

    Passed by for the day Block Vote (Voice Vote)

  34. 2026-02-11 General Laws and Technology

    Reported from General Laws and Technology (14-Y 1-N)

  35. 2026-02-03 Senate

    Fiscal Impact Statement from Department of Planning and Budget (SB565)

  36. 2026-01-14 Senate

    Prefiled and ordered printed; Offered 01-14-2026 26103831D

  37. 2026-01-14 General Laws and Technology

    Referred to Committee on General Laws and Technology

Official Summary Text

Virginia Contractor Transaction Recovery Fund; claim limits; license threshold amounts.
Expands the scope of Chapters 127 and 133 of the Acts of Assembly of 2025, which increased certain claim limits and license threshold amounts, to apply to any claimant who filed a verified claim with the Director of the Department of Professional and Occupational Regulation on or after June 6, 2024, for recovery from the Virginia Contractor Transaction Recovery Fund and whose claim was thereafter approved by the Board for Contractors.

Current Bill Text

Read the full stored bill text 
An Act to amend Chapter 127 and Chapter 133 of the Acts of Assembly of 2025 by adding a second enactment, relating to Virginia Contractor Transaction Recovery Fund; claim limits; license threshold amounts.
Be it enacted by the General Assembly of Virginia:
1. That Chapter 127 and Chapter 133 of the Acts of Assembly of 2025 are amended by adding a second enactment as follows:
2. That the provisions of this act shall apply to any claimant who filed a verified claim with the Director of the Department of Professional and Occupational Regulation on or after June 6, 2024, for recovery from the Virginia Contractor Transaction Recovery Fund and whose claim was thereafter approved by the Board for Contractors
(the Board). The Board shall reopen the case of any eligible claimant pursuant to this enactment whose case was finalized under recovery limits in existence prior to July 1, 2025, and apply any appropriate additional amounts to such claimant's recovery pursuant to the recovery limits made effective in accordance with the first enactment of this act
.