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LEGISLATURE
OF
THE
STATE
OF
IDAHO
Sixty-eighth
Legislature
Second
Regular
Session
-
2026
IN
THE
HOUSE
OF
REPRESENTATIVES
HOUSE
BILL
NO.
646
BY
BUSINESS
COMMITTEE
AN
ACT
1
RELATING
TO
THE
LITIGATION
FINANCING
TRANSPARENCY,
NATIONAL
SECURITY,
AND
2
CONSUMER
PROTECTION
ACT;
AMENDING
TITLE
48,
IDAHO
CODE,
BY
THE
ADDITION
3
OF
A
NEW
CHAPTER
21,
TITLE
48,
IDAHO
CODE,
TO
PROVIDE
A
SHORT
TITLE,
4
TO
DEFINE
TERMS,
TO
REQUIRE
CERTAIN
REGISTRATION,
TO
ESTABLISH
LIT
-
5
IGATION
FINANCING
PROTECTIONS,
TO
PROVIDE
FOR
LITIGATION
FINANCING
6
CONTRACTS
AND
DISCLOSURES,
TO
PROVIDE
FOR
DISCLOSURE
AND
DISCOVERY
OF
7
LITIGATION
FINANCING
CONTRACTS,
TO
ESTABLISH
EXEMPTIONS,
TO
PROVIDE
8
CERTAIN
APPLICABILITY
REGARDING
CLASS
ACTIONS,
TO
PROVIDE
FOR
CERTAIN
9
JOINT
AND
SEVERAL
LIABILITY,
TO
PROHIBIT
LITIGATION
FUNDING
BY
FOR
-
10
EIGN
ADVERSARIES,
TO
RESTRICT
DISCLOSURE
OF
PROPRIETARY
INFORMATION,
1
1
TO
ESTABLISH
LIMITATIONS
ON
FOREIGN
LITIGATION
FUNDING,
TO
PROVIDE
12
FOR
THE
REGISTRATION
AND
TRANSPARENCY
OF
FOREIGN
PERSONS,
TO
PROVIDE
13
FOR
REGULATORY
OVERSIGHT,
TO
ESTABLISH
PROVISIONS
REGARDING
CHAPTER
14
VIOLATIONS,
AND
TO
PROVIDE
FOR
CHAPTER
APPLICABILITY;
PROVIDING
SEVER
-
15
ABILITY;
AND
DECLARING
AN
EMERGENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
16
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
17
SECTION
1.
That
Title
48,
Idaho
Code,
be,
and
the
same
is
hereby
amended
18
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
19
ter
21,
Title
48,
Idaho
Code,
and
to
read
as
follows:
20
CHAPTER
21
21
LITIGATION
FINANCING
TRANSPARENCY,
NATIONAL
SECURITY,
AND
CONSUMER
22
PROTECTION
ACT
23
48
-
2101.
SHORT
TITLE.
This
act
shall
be
known
and
may
be
cited
as
the
24
"Litigation
Financing
Transparency,
National
Security,
and
Consumer
Pro
-
25
tection
Act."
26
48
-
2102.
DEFINITIONS.
As
used
in
this
chapter:
27
(1)
"Consumer"
means
any
person
who
is
or
may
become
a
plaintiff,
28
claimant,
or
complainant
in
conjunction
with
or
in
pursuit
of
a
legal
claim.
29
(2)
"Entity"
means
any
domestic
or
foreign
corporation,
partnership,
30
limited
partnership,
limited
liability
company,
trust,
fund,
plan,
or
any
31
other
business,
enterprise,
association,
or
organization
of
any
kind
or
na
-
32
ture.
33
(3)
"Foreign
adversary"
means:
34
(a)
A
foreign
government
of
a
foreign
country
identified
or
designated
35
as
a
foreign
adversary
pursuant
to
15
CFR
791.4,
as
in
effect
on
July
1,
36
2026;
37
(b)
Any
political
subdivision,
agency,
department,
or
political
party
38
of
a
foreign
government
identified
or
designated
as
a
foreign
adversary
39
pursuant
to
15
CFR
791.4,
as
in
effect
on
July
1,
2026;
or
40
2
(c)
A
foreign
nongovernment
person
identified
or
designated
as
a
for
-
1
eign
adversary
pursuant
to
15
CFR
791.4,
as
in
effect
on
July
1,
2026.
2
(4)
"Foreign
person"
means:
3
(a)
An
individual
who
is
not
a
citizen
of
the
United
States
or
is
not
an
4
alien
lawfully
admitted
for
permanent
residence
in
the
United
States;
5
(b)
An
entity
that
is
not
formed,
organized,
incorporated,
or
created
6
in
the
United
States;
7
(c)
An
entity
of
which
a
majority
of
the
persons
who
own
or
control
the
8
entity
are
not
citizens
of
the
United
States
or
are
not
aliens
lawfully
9
admitted
for
permanent
residence
in
the
United
States;
10
(d)
The
government,
a
political
subdivision,
an
agency,
a
department,
1
1
or
a
political
party
of
a
country
other
than
the
United
States;
12
(e)
An
entity
that
has
a
place
of
business
in
a
country
other
than
the
13
United
States
and
that
has
shares
or
other
ownership
interest
held
by
14
the
government
or
a
government
official
of
a
country
other
than
the
15
United
States;
or
16
(f)
An
employee,
officer,
director,
official,
or
member
of
an
entity
17
described
in
this
subsection.
18
(5)
"Foreign
person
of
concern"
means
a
person
that:
19
(a)
Is
formed,
organized,
incorporated,
or
created
in
a
foreign
country
20
identified
as
a
foreign
adversary;
21
(b)
Is
formed,
organized,
incorporated,
owned,
controlled,
or
affili
-
22
ated,
directly
or
indirectly,
with
a
foreign
adversary;
23
(c)
Maintains
a
personal
residence
or
place
of
business
in
a
foreign
24
country
identified
as
a
foreign
adversary;
or
25
(d)
Is
formed,
organized,
incorporated,
owned,
controlled,
or
affili
-
26
ated,
directly
or
indirectly,
with
a
foreign
person
that
has
been:
27
(i)
Placed
on
the
federal
office
of
foreign
assets
control's
spe
-
28
cially
designated
nationals
and
blocked
persons
list,
also
known
29
as
the
SDN
list,
as
amended;
or
30
(ii)
Designated
by
the
United
States
secretary
of
state
as
a
for
-
31
eign
terrorist
person
or
organization.
32
(6)
"Legal
claim"
means
a
civil
action,
administrative
proceeding,
33
claim,
or
cause
of
action
to
recover
damages
or
any
form
of
monetary
or
in
-
34
junctive
relief
in
this
state.
35
(7)
"Legal
representative"
means
an
attorney,
group
of
attorneys,
law
36
firm,
or
group
of
law
firms
engaged
to
represent
a
consumer
in
conjunction
37
with
or
in
pursuit
of
a
legal
claim.
38
(8)(a)
"Litigation
financier"
means
any
person
or
group
of
persons
en
-
39
gaged
in,
or
formed,
created,
or
established
for
the
purpose
of
engaging
40
in,
the
business
of
litigation
financing
or
any
other
business
or
eco
-
41
nomic
activity
in
which
a
person
or
group
of
persons
receive
considera
-
42
tion
of
any
kind
in
exchange
for
providing
litigation
financing.
43
(b)
"Litigation
financier"
does
not
include:
44
(i)
A
party
to
the
legal
claim;
45
(ii)
A
legal
representative
engaged
directly,
or
indirectly
46
through
another
legal
representative,
to
represent
a
party
in
con
-
47
junction
with
or
in
pursuit
of
the
legal
claim;
or
48
(iii)
An
entity
or
insurer
with
a
preexisting
contractual
obliga
-
49
tion
to
indemnify
or
defend
a
party
to
a
legal
claim.
50
3
(9)
"Litigation
financing"
means:
1
(a)
The
financing,
funding,
advancing,
or
loaning
of
money
to
a
legal
2
representative
or
to
any
person
who
has
or
may
pursue
or
assert
a
legal
3
claim
or
who
is
or
may
become
a
plaintiff
in
conjunction
with
or
in
pur
-
4
suit
of
a
legal
claim
if:
5
(i)
Repayment
of
all
or
a
portion
of
the
amount
financed,
funded,
6
advanced,
or
loaned
is
contingent
in
any
respect
on
the
outcome
of
7
a
legal
claim
or
group
of
legal
claims;
8
(ii)
Repayment
is
required
only
if
the
person
prevails
in
conjunc
-
9
tion
with
or
in
pursuit
of
a
legal
claim
or
group
of
legal
claims;
10
or
1
1
(iii)
The
money
or
funds
for
the
repayment
of
any
amount
financed,
12
funded,
advanced,
or
loaned
is
derived
or
sourced,
directly
or
13
indirectly,
from
the
proceeds
of
or
other
consideration
realized
14
from
a
judgment,
award,
settlement,
verdict,
or
other
form
of
15
monetary
relief
the
person
or
legal
representative
may
receive
or
16
recover
in
conjunction
with
or
in
pursuit
of
a
legal
claim
or
group
17
of
legal
claims;
or
18
(b)
Any
agreement
or
arrangement
involving
the
financing,
funding,
ad
-
19
vancing,
or
loaning
of
money
to
a
legal
representative
if
the
repayment
20
of
all
or
a
portion
of
the
amount
financed,
funded,
advanced,
or
loaned
21
is
contingent
on
the
outcome
of
any
single
legal
claim
or
group
of
legal
22
claims
in
which
the
legal
representative
represents
one
(1)
or
more
con
-
23
sumers.
24
(10)(a)
"Litigation
financing
contract"
means
a
written
contract
in
25
which
a
person
agrees
to
provide
litigation
financing
to
any
person
in
26
consideration
for:
27
(i)
The
payment
of
interest,
fees,
or
other
consideration
to
the
28
person
providing
the
litigation
financing;
or
29
(ii)
Granting
or
assigning
to
the
person
providing
the
litigation
30
financing
a
right
to
receive
payment
from
the
value
of
any
proceeds
31
or
other
consideration
realized
from
any
judgment,
award,
settle
-
32
ment,
verdict,
or
other
form
of
monetary
relief
any
consumer,
le
-
33
gal
representative,
or
other
person
may
receive
or
recover
in
re
-
34
lation
to
the
legal
claim.
35
(b)
"Litigation
financing
contract"
includes
any
agreement
related
to
36
a
litigation
financing
contract.
37
(c)
"Litigation
financing
contract"
does
not
include
any
agreement,
38
contract,
or
engagement
of
a
legal
representative
to
render
legal
ser
-
39
vices
to
a
consumer
on
a
contingency
fee
basis,
including
the
advance
-
40
ment
of
legal
costs
by
the
legal
representative,
in
which
the
services
41
or
costs
are
provided
to
or
on
behalf
of
a
consumer
by
the
legal
repre
-
42
sentative
representing
the
consumer
in
the
legal
claim.
43
(11)
"Person"
means
an
individual
or
an
entity.
44
(12)
"Proprietary
information"
means
any
documents,
records,
or
infor
-
45
mation
received
by
a
party
in
conjunction
with
or
in
pursuit
of
a
legal
claim
46
that
has
economic
or
commercial
value
in
any
person's
business
and
is:
47
(a)
Designated
as
proprietary
information
by
a
party
to
the
legal
48
claim;
or
49
4
(b)
Subject
to
a
court
order
to
protect,
seal,
or
otherwise
restrict
the
1
disclosure
or
sharing
of
the
documents,
records,
or
information.
2
(13)
"Regulated
lender"
has
the
same
meaning
as
provided
for
in
section
3
28
-
41
-
301,
Idaho
Code.
4
48
-
2103.
REGISTRATION
REQUIRED.
(1)
A
person
shall
not
engage
in
liti
-
5
gation
financing
in
this
state
unless
such
person
is
registered
with
the
sec
-
6
retary
of
state
as
a
litigation
financier
pursuant
to
the
provisions
of
this
7
chapter.
8
(2)
To
register
as
a
litigation
financier,
if
the
person
registering
is
9
an
entity:
10
(a)
The
entity
shall
be
active
and
in
good
standing
as
reflected
in
the
1
1
office
of
the
secretary
of
state;
and
12
(b)
The
entity's
articles
of
incorporation,
charter,
articles
of
13
organization,
certificate
of
limited
partnership,
or
other
organiza
-
14
tional
or
governing
document
shall
contain
a
statement
that
the
entity
15
has
the
power
to
engage
in
the
business
of
litigation
financing
and
is
16
designated
as
a
litigation
financier
pursuant
to
this
chapter.
17
(3)
To
register
as
a
litigation
financier,
a
person
shall
file
a
reg
-
18
istration
statement
with
the
secretary
of
state
setting
forth
the
following
19
information:
20
(a)
The
legal
name
of
the
litigation
financier;
21
(b)
The
physical
street
address
and
mailing
address
of
the
litigation
22
financier;
23
(c)
A
telephone
number
or
email
address
through
which
the
litigation
24
financier
may
be
contacted;
25
(d)
The
physical
street
address
and
mailing
address
of
the
litigation
26
financier's
registered
office
and
the
name
of
the
registered
agent
at
27
the
registered
office
who
is
authorized
to
accept
service
of
process
on
28
behalf
of
the
litigation
financier;
and
29
(e)
Any
other
information
the
secretary
of
state
considers
necessary.
30
(4)
If
the
person
seeking
to
register
as
a
litigation
financier
is
an
31
entity,
the
following
information
shall
be
set
forth
in
the
registration
32
statement
with
respect
to
each
person
that,
directly
or
indirectly,
owns,
33
controls,
holds
with
the
power
to
vote,
or
holds
proxies
representing
five
34
percent
(5%)
or
more
of
the
voting
securities
of
the
litigation
financier:
35
(a)
The
legal
name,
physical
street
address,
and
mailing
address
of
36
each
person;
37
(b)
If
the
person
is
an
individual:
38
(i)
The
individual's
occupation;
39
(ii)
Any
offices
and
positions
held
with
the
litigation
financier
40
during
the
past
five
(5)
years;
and
41
(iii)
Any
conviction
of
a
crime
other
than
misdemeanor
traffic
vi
-
42
olations
during
the
past
ten
(10)
years;
43
(c)
If
the
person
is
an
entity:
44
(i)
The
nature
of
the
entity's
business
operations,
if
any,
dur
-
45
ing
the
past
five
(5)
years
or
a
description
of
the
business
in
-
46
tended
to
be
done
by
the
entity
and
the
entity's
subsidiaries,
if
47
any;
and
48
5
(ii)
A
list
of
all
individuals
who
are
or
who
have
been
selected
1
to
become
directors
or
officers
of
the
entity
and
each
subsidiary
2
of
the
entity.
The
list
shall
include,
for
each
individual,
the
3
information
required
by
paragraph
(b)
of
this
subsection.
4
(5)
A
litigation
financier
subject
to
registration
pursuant
to
this
5
chapter
shall
file
an
amended
registration
within
thirty
(30)
days
whenever
6
the
information
contained
in
the
most
recently
filed
registration
changes
or
7
becomes
inaccurate
or
incomplete
in
any
respect.
8
(6)
The
secretary
of
state
is
authorized
to
prescribe
the
forms
and
the
9
filing
fees
the
secretary
of
state
considers
necessary
for
the
purposes
of
10
this
chapter.
1
1
(7)
All
documents
and
information
filed
with
the
secretary
of
state
12
pursuant
to
this
section
are
public
records.
13
(8)
The
secretary
of
state's
duty
to
file
documents
pursuant
to
this
14
section
is
ministerial.
The
secretary
of
state's
filing
or
refusing
to
file
15
a
document
does
not
create
a
presumption
that:
16
(a)
The
document
does
or
does
not
conform
to
the
requirements
of
this
17
chapter;
or
18
(b)
The
information
contained
in
the
document
is
correct
or
incorrect.
19
48
-
2104.
LITIGATION
FINANCING
PROTECTIONS.
(1)
A
litigation
fi
-
20
nancier
shall
not:
21
(a)
Pay
or
offer
commissions,
referral
fees,
rebates,
or
other
forms
22
of
consideration
to
any
person
in
exchange
for
referring
a
consumer
or
a
23
consumer's
legal
representative
to
a
litigation
financier;
24
(b)
Accept
any
commissions,
referral
fees,
rebates,
or
other
forms
of
25
consideration
from
any
person
providing
any
goods
or
rendering
any
ser
-
26
vices
to
the
consumer;
27
(c)
Charge
a
rate
of
interest
that
exceeds
the
greater
of
fifteen
28
percent
(15%)
or
an
amount
that
is
six
(6)
percentage
points
per
year
29
above
the
prime
rate
published
by
the
federal
reserve
system
in
its
30
statistical
release
publication,
H.15
selected
interest
rates
for
bank
31
prime
loans,
dated
three
(3)
business
days
prior
to
the
execution
of
32
the
agreement.
Interest
shall
be
allowed
according
to
the
terms
of
the
33
agreement;
34
(d)
Receive
or
recover
any
payment
that
exceeds
twenty
-
five
percent
35
(25%)
of
the
amount
of
any
judgment,
award,
settlement,
verdict,
or
36
other
form
of
monetary
relief
obtained
in
the
legal
claim
that
is
the
37
subject
of
the
litigation
contract;
38
(e)
Advertise
false
or
misleading
information
regarding
its
products
39
or
services;
40
(f)
Refer
or
require
any
consumer
to
hire
or
engage
any
person
providing
41
any
goods
or
rendering
any
services
to
the
consumer;
42
(g)
Fail
to
promptly
deliver
a
fully
completed
and
signed
litigation
43
financing
contract
to
the
consumer
and
the
consumer's
legal
representa
-
44
tive;
45
(h)
Attempt
to
secure
a
remedy
or
obtain
a
waiver
of
any
remedy,
includ
-
46
ing
but
not
limited
to
compensatory,
statutory,
or
punitive
damages,
47
that
the
consumer
may
or
may
not
be
entitled
to
pursue
or
recover
other
-
48
wise;
49
6
(i)
Offer
or
provide
legal
advice
to
the
consumer;
1
(j)
Assign,
including
securitizing,
a
litigation
financing
contract
in
2
whole
or
in
part;
3
(k)
Make,
influence,
or
direct
a
decision
regarding
a
legal
claim,
in
-
4
cluding
decisions
in
appointing
or
changing
counsel,
choice
or
use
of
5
expert
witnesses,
litigation
strategy,
and
settlement
or
other
resolu
-
6
tion;
or
7
(l)
Demand,
request,
receive,
or
exercise
any
right
to
influence,
af
-
8
fect,
or
otherwise
make
any
decision
in
the
handling,
conduct,
admin
-
9
istration,
litigation,
settlement,
or
resolution
of
any
legal
claim
in
10
which
the
litigation
financier
has
provided
litigation
financing.
All
1
1
rights
remain
solely
with
the
consumer
and
the
consumer's
legal
repre
-
12
sentative.
13
(2)
A
person
who
provides
any
goods
or
renders
any
services
to
the
con
-
14
sumer
shall
not
have
a
financial
interest
in
litigation
financing
and
shall
15
not
receive
any
commissions,
referral
fees,
rebates,
or
other
forms
of
con
-
16
sideration
from
any
litigation
financier
or
the
litigation
financier's
em
-
17
ployees,
owners,
or
affiliates.
18
(3)
A
party,
attorney
or
law
firm
representing
a
party,
or
affiliated
19
attorney
or
law
firm
shall
not
disclose
or
share
any
proprietary
information
20
with
a
litigation
financier.
21
48
-
2105.
LITIGATION
FINANCING
CONTRACT
-
-
DISCLOSURES.
(1)
The
terms
22
and
conditions
of
a
litigation
financing
contract
shall
be
set
forth
in
a
23
fully
completed
written
contract
with
no
terms
or
conditions
omitted.
The
24
litigation
financing
contract
shall
contain
all
terms
and
conditions
at
the
25
time
it
is
signed
by
any
party
to
the
litigation
financing
contract.
26
(2)
Upon
execution
of
a
litigation
financing
contract,
a
litigation
fi
-
27
nancier
shall
not
amend
the
terms
or
conditions
of
the
litigation
financing
28
contract
without
full
disclosure
to
and
the
prior
written
consent
of
all
par
-
29
ties
to
the
litigation
financing
contract.
30
(3)
A
litigation
financing
contract
shall
set
forth
the
name,
physical
31
street
address,
and
mailing
address
of
the
litigation
financier
on
page
one
32
(1)
of
the
litigation
financing
contract.
33
(4)
A
litigation
financing
contract
shall
contain
the
following
dis
-
34
closures
that
constitute
material
terms
and
conditions
of
the
litigation
35
financing
contract
and
shall
be
typed
in
at
least
fourteen
(14)
point
bold
36
font
and
be
placed
clearly
and
conspicuously
immediately
above
the
con
-
37
sumer's
signature
line
in
the
litigation
financing
contract:
38
IMPORTANT
DISCLOSURES
-
-
PLEASE
READ
CAREFULLY
39
1.
Right
to
Cancellation:
You
may
cancel
this
litigation
financ
-
40
ing
contract
without
penalty
or
further
obligation
within
five
(5)
41
business
days
from
the
date
you
sign
this
contract
or
the
date
you
42
receive
financing
from
the
litigation
financier,
whichever
date
is
43
later.
You
may
cancel
by
sending
a
notice
of
cancellation
to
the
44
litigation
financier
and
returning
to
the
litigation
financier
any
45
funds
received
from
the
litigation
financier
at
the
litigation
fi
-
46
nancier's
address
set
forth
on
page
1
of
this
contract.
47
7
2.
The
maximum
amount
the
litigation
financier
may
receive
or
re
-
1
cover
from
any
payment
may
not
exceed
twenty
-
five
percent
(25%)
of
2
the
amount
of
any
judgment,
award,
settlement,
verdict,
or
other
3
form
of
monetary
relief
obtained
in
the
civil
action,
administra
-
4
tive
proceeding,
claim,
or
cause
of
action
that
is
the
subject
of
5
this
litigation
contract.
6
3.
The
litigation
financier
agrees
that
it
has
no
right
to,
and
7
will
not
demand,
request,
receive,
or
exercise
any
right
to,
in
-
8
fluence,
affect,
or
otherwise
make
any
decision
in
the
handling,
9
conduct,
administration,
litigation,
settlement,
or
resolution
of
10
your
civil
action,
administrative
proceeding,
claim,
or
cause
of
1
1
action.
All
of
these
rights
remain
solely
with
you
and
your
legal
12
representative.
13
4.
If
there
is
no
recovery
of
any
money
from
your
civil
action,
ad
-
14
ministrative
proceeding,
claim,
or
cause
of
action,
or
if
there
is
15
not
enough
money
to
satisfy
in
full
the
portion
assigned
to
the
lit
-
16
igation
financier,
you
will
not
owe
anything
in
excess
of
your
re
-
17
covery.
18
5.
You
are
entitled
to
a
fully
completed
contract
with
no
terms
or
19
conditions
omitted
prior
to
signing.
Before
signing
this
contract,
20
you
should
read
the
contract
completely
and
consult
an
attorney.
21
(5)
If
the
consumer
is
represented
by
a
legal
representative
in
the
le
-
22
gal
claim
that
is
the
subject
of
the
litigation
financing
contract,
the
legal
23
representative
shall
acknowledge
in
the
contract
that
the
legal
representa
-
24
tive
and
the
legal
representative's
employer
and
employees
have
not
received
25
or
paid
a
referral
fee
or
any
other
consideration
from
or
to
the
litigation
26
financier
and
have
no
obligation
to
do
so
in
the
future.
27
(6)
If
the
consumer's
legal
representative
is
a
party
to
a
litigation
28
financing
contract
related
to
the
consumer's
legal
claim
that
is
the
subject
29
of
the
litigation
financing
contract,
the
legal
representative
shall
dis
-
30
close
and
deliver
the
litigation
financing
contract
to
the
consumer.
Fol
-
31
lowing
this
disclosure
and
delivery,
the
consumer
shall
sign
an
acknowledg
-
32
ment
that
the
consumer
has
read
and
understands
the
terms
and
conditions
of
33
the
litigation
financing
contract
and
the
consumer
shall
be
provided
with
a
34
copy
of
the
acknowledgment.
35
48
-
2106.
DISCLOSURE
AND
DISCOVERY
OF
LITIGATION
FINANCING
CON
-
36
TRACTS.
(1)
Except
as
otherwise
stipulated
or
ordered
by
a
court
of
competent
37
jurisdiction,
a
consumer
or
the
consumer's
legal
representative
shall,
38
without
awaiting
a
discovery
request,
disclose
and
deliver
to
the
following
39
persons
the
litigation
financing
contract:
40
(a)
Each
party
to
the
legal
claim,
or
to
each
party's
legal
representa
-
41
tive;
42
(b)
The
court,
agency,
or
tribunal
in
which
the
legal
claim
may
be
pend
-
43
ing;
and
44
(c)
Any
known
person,
including
an
insurer,
with
a
preexisting
contrac
-
45
tual
obligation
to
indemnify
or
defend
a
party
to
the
legal
claim.
46
(2)
The
disclosure
obligation
pursuant
to
subsection
(1)
of
this
sec
-
47
tion
exists
regardless
of
whether
a
legal
claim
has
commenced.
48
8
(3)
The
disclosure
obligation
pursuant
to
subsection
(1)
of
this
sec
-
1
tion
is
a
continuing
obligation,
and
within
thirty
(30)
days
of
entering
into
2
a
litigation
financing
contract
or
amending
an
existing
litigation
financ
-
3
ing
contract,
the
consumer
or
the
consumer's
legal
representative
shall
dis
-
4
close
and
deliver
any
new
or
amended
litigation
financing
contracts.
5
(4)
The
existence
of
a
litigation
financing
contract
and
all
partici
-
6
pants
or
parties
to
the
litigation
financing
contract
are
permissible
sub
-
7
jects
of
discovery
in
any
legal
claim
to
which
litigation
financing
is
pro
-
8
vided
under
the
litigation
financing
contract,
regardless
of
whether
a
legal
9
claim
has
commenced.
10
48
-
2107.
EXEMPTIONS.
This
chapter
does
not
apply
to
the
following:
1
1
(1)
A
nonprofit
entity
that
is
exempt
from
federal
income
taxation
pur
-
12
suant
to
section
501(c)(3)
of
the
Internal
Revenue
Code
or
a
nonprofit
entity
13
that
provides
litigation
financing,
funding,
or
money
to
a
legal
representa
-
14
tive
to
represent
a
consumer
on
a
pro
bono
basis,
provided
that
the
nonprofit
15
entity
does
not
receive
in
consideration
for
the
litigation
financing
the
16
payment
of
interest,
fees,
or
other
consideration
in
excess
of
the
amount
of
17
attorney's
fees
and
litigation
expenses
incurred
in
conjunction
with
or
in
18
pursuit
of
the
legal
claim;
19
(2)
Any
litigation
financing
provided
by
an
entity
engaged
in
commerce
20
or
business
activity,
but
only
if
the
entity
does
not:
21
(a)
Charge
or
collect
any
interest,
fees,
or
other
consideration;
22
(b)
Retain
or
receive
any
financial
interest
in
the
outcome
of
the
legal
23
claim;
or
24
(c)
Receive
any
right
to
recovery
or
payment
from
the
amount
of
any
25
judgment,
award,
settlement,
verdict,
or
other
form
of
monetary
relief
26
obtained
in
conjunction
with
or
in
pursuit
of
the
legal
claim;
or
27
(3)
A
regulated
lender
that
does
not
receive,
in
consideration
for
28
loaning
money
to
any
person,
a
right
to
receive
payment
from
the
value
of
any
29
proceeds
or
other
consideration
realized
from
any
judgment,
award,
settle
-
30
ment,
verdict,
or
other
form
of
monetary
relief
any
person
may
receive
or
31
recover
in
conjunction
with
or
in
pursuit
of
the
legal
claim.
32
48
-
2108.
CLASS
ACTIONS.
In
addition
to
all
other
actions
to
which
this
33
chapter
applies,
this
chapter
shall
also
apply
to
any
civil
action
filed
or
34
certified
as
a
class
action
in
which
litigation
financing
is
provided.
A
35
litigation
financier
owes
a
fiduciary
duty
to
all
class
members
or
intended
36
beneficiaries
of
a
certified
class
and
shall
act
in
a
manner
consistent
with
37
the
litigation
financier's
fiduciary
duty
throughout
the
civil
action.
In
38
addition
to
the
disclosure
requirements
set
forth
in
this
chapter,
the
legal
39
representative
of
the
putative
class
shall
disclose
to
all
parties,
putative
40
class
members,
and
the
court
any
legal,
financial,
or
other
relationship
be
-
41
tween
the
legal
representative
and
the
litigation
financier.
A
class
member
42
is
entitled
to
receive
from
the
class
counsel
a
true
and
correct
copy
of
the
43
litigation
financing
contract
on
request.
44
48
-
2109.
JOINT
AND
SEVERAL
LIABILITY
FOR
COSTS.
A
litigation
fi
-
45
nancier
is
jointly
and
severally
liable
for
any
award
or
order
imposing
or
46
assessing
costs
or
monetary
sanctions
against
a
consumer
or
a
party's
legal
47
9
representative
arising
from
or
relating
to
any
legal
claim
for
which
the
1
litigation
financier
is
providing
litigation
financing.
2
48
-
2110.
PROHIBITION
ON
LITIGATION
FUNDING
BY
FOREIGN
ADVERSARIES
OR
3
FOREIGN
PERSONS
OF
CONCERN.
(1)
A
foreign
adversary
or
a
foreign
person
of
4
concern
may
not
engage
in
litigation
financing
in
this
state.
5
(2)
A
foreign
adversary
or
a
foreign
person
of
concern
may
not,
directly
6
or
indirectly,
invest
in,
finance,
fund,
or
loan
money
to
a
litigation
fi
-
7
nancier
engaged
in
litigation
financing
in
this
state.
8
(3)
A
litigation
financier
engaged
in
litigation
financing
in
this
9
state
may
not,
directly
or
indirectly:
10
(a)
Become
affiliated
with
or
maintain
an
affiliation
with
a
foreign
1
1
adversary
or
a
foreign
person
of
concern;
12
(b)
Receive
or
accept
money
or
funds
from
a
foreign
adversary
or
a
for
-
13
eign
person
of
concern;
or
14
(c)
Allow
a
foreign
adversary
or
a
foreign
person
of
concern
to
invest
15
in,
maintain
an
ownership
interest
in,
or
exercise
any
control
over
the
16
litigation
financier.
17
48
-
2111.
RESTRICTION
ON
DISCLOSURE
OF
PROPRIETARY
INFORMATION.
A
18
party
to
a
legal
claim
in
this
state
shall
not
disclose
to
or
share
with
a
19
foreign
person,
a
foreign
adversary,
or
a
foreign
person
of
concern
any
pro
-
20
prietary
information.
21
48
-
2112.
LIMITATIONS
ON
FOREIGN
LITIGATION
FUNDING.
A
foreign
person
22
who,
directly
or
indirectly:
engages
in
litigation
financing;
becomes
af
-
23
filiated
with
or
maintains
an
affiliation
with
a
litigation
financier;
fi
-
24
nances,
funds,
or
loans
money
to
a
litigation
financier;
or
invests
in,
main
-
25
tains
an
ownership
interest
in,
or
exercises
any
control
over
a
litigation
26
financier
shall
not:
27
(1)
Become
affiliated
with
or
maintain
an
affiliation
with
a
foreign
28
adversary
or
a
foreign
person
of
concern;
29
(2)
Receive
or
accept
money
or
funds
from
a
foreign
adversary
or
a
for
-
30
eign
person
of
concern;
or
31
(3)
Allow
a
foreign
adversary
or
a
foreign
person
of
concern
to
invest
32
in,
maintain
an
ownership
interest
in,
or
exercise
control
over
the
foreign
33
person.
34
48
-
2113.
REGISTRATION
AND
TRANSPARENCY
OF
FOREIGN
PERSONS.
(1)
A
for
-
35
eign
person
who
is
qualified
to
engage
in
litigation
financing
in
this
state
36
shall
comply
with
this
chapter
if
the
foreign
person
engages
in
litigation
37
financing
in
this
state.
38
(2)
A
litigation
financier
shall
disclose
in
writing
to
the
secretary
39
of
state
the
information
set
forth
in
subsection
(3)
of
this
section
if
the
40
litigation
financier
engages
in
any
of
the
following:
41
(a)
Becomes
affiliated
with
or
maintains
affiliation
with
a
foreign
42
person;
43
(b)
Receives
or
accepts
money
or
funds
from
a
foreign
person
for
any
44
purpose;
or
45
10
(c)
Allows
a
foreign
person
to
invest
in,
maintain
an
ownership
inter
-
1
est
in,
or
exercise
any
control
over
the
litigation
financier.
2
(3)
The
following
information
shall
be
disclosed
in
writing
to
the
sec
-
3
retary
of
state:
4
(a)
The
name
and
address
of
the
foreign
person
and
the
citizenship
of
5
the
foreign
person
or
the
country
of
incorporation,
formation,
or
reg
-
6
istration
of
the
foreign
person;
and
7
(b)
A
copy
of
each
litigation
financing
contract
in
which
the
foreign
8
person
is
entitled
to
receive
any
payment
under
the
contract.
9
(4)
The
litigation
financier
shall
provide
the
written
notice
required
10
pursuant
to
subsection
(2)
of
this
section
within
thirty
(30)
days
after
the
1
1
date
on
which
any
litigation
financing
agreement
is
executed
by
the
con
-
12
sumer.
13
48
-
2114.
REGULATORY
OVERSIGHT
-
-
RULEMAKING.
The
secretary
of
state
14
is
authorized
to
adopt
rules
and
other
policies
in
overseeing
the
practice
of
15
litigation
financing
consistent
with
this
chapter,
subject
to
legislative
16
approval.
17
48
-
2115.
ACT
VIOLATION
-
-
UNENFORCEABLE
CONTRACT.
(1)
Any
violation
18
of
this
chapter
by
a
litigation
financier
shall
render
the
litigation
fi
-
19
nancing
contract
unenforceable
by
the
litigation
financier
or
any
succes
-
20
sor
-
in
-
interest
to
the
litigation
financing
contract.
21
(2)
If
a
litigation
financier
charges
a
rate
of
interest
that
exceeds
22
the
rate
of
interest
allowed
pursuant
to
section
48
-
2104(1)(c),
Idaho
Code,
23
the
litigation
financier
shall
be
subject
to
a
penalty
for
usury
and
an
ac
-
24
tion
to
recover
excessive
interest.
25
48
-
2116.
APPLICABILITY.
This
chapter
shall
apply
to
any
legal
claim
26
pending
or
commenced
on
or
after
July
1,
2026.
27
SECTION
2.
SEVERABILITY.
The
provisions
of
this
act
are
hereby
declared
28
to
be
severable
and
if
any
provision
of
this
act
or
the
application
of
such
29
provision
to
any
person
or
circumstance
is
declared
invalid
for
any
reason,
30
such
declaration
shall
not
affect
the
validity
of
the
remaining
portions
of
31
this
act.
32
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
33
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
34
July
1,
2026.
35