Plain English Breakdown
The bill status shows it passed both chambers but also lists a canceled hearing; the effective date remains unknown based on provided metadata.
AB-743: Licensing and Rules for Lawsuit Financiers
This bill requires people who provide lawsuit financing to get a license, follow new rules, keep a surety bond, and face penalties if they break the law.
What This Bill Does
- Prohibits anyone from doing business as a lawsuit financier without getting a license from the Commissioner of Financial Protection and Innovation.
- Adds lawsuit financing to the legal definition of a commercial loan under the California Financing Law.
- Requires licensed lawsuit financiers to maintain a surety bond as prescribed by law.
- Makes willful violations of the law by licensed lawsuit financiers subject to civil penalties.
Who It Names or Affects
- People or businesses engaged in the business of lawsuit financing.
- The Commissioner of Financial Protection and Innovation, who issues licenses and oversees compliance.
Terms To Know
- Lawsuit financier
- A person or business that provides funding for legal cases as defined by the bill.
- Surety bond
- A financial guarantee required from licensees to protect against losses if they break rules, as prescribed by law.
- Commercial loan
- The category of loans that now includes lawsuit financing under this bill's new definition.
Limits and Unknowns
- The exact dollar amount for the surety bond is not specified in the provided text.
- The specific civil penalty amounts are described as 'as specified' but not listed here.
- The official effective date of this law is not included in the source material.