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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.
946
BY
WAYS
AND
MEANS
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,
TO
4
DEFINE
TERMS,
TO
REQUIRE
CERTAIN
REGISTRATION,
TO
ESTABLISH
LITIGATION
5
FINANCING
PROTECTIONS,
TO
PROVIDE
FOR
LITIGATION
FINANCING
CONTRACTS
6
AND
DISCLOSURES,
TO
PROVIDE
FOR
DISCLOSURE
AND
DISCOVERY
OF
LITIGATION
7
FINANCING
CONTRACTS,
TO
ESTABLISH
EXEMPTIONS,
TO
PROVIDE
CERTAIN
AP
-
8
PLICABILITY
REGARDING
CLASS
ACTIONS,
TO
PROHIBIT
LITIGATION
FUNDING
9
BY
FOREIGN
ADVERSARIES,
TO
RESTRICT
DISCLOSURE
OF
PROPRIETARY
INFOR
-
10
MATION,
TO
ESTABLISH
LIMITATIONS
ON
FOREIGN
LITIGATION
FUNDING,
TO
1
1
PROVIDE
FOR
THE
REGISTRATION
AND
TRANSPARENCY
OF
FOREIGN
PERSONS,
TO
12
ESTABLISH
PROVISIONS
REGARDING
CHAPTER
VIOLATIONS,
AND
TO
PROVIDE
FOR
13
CHAPTER
APPLICABILITY;
PROVIDING
SEVERABILITY;
AND
DECLARING
AN
EMER
-
14
GENCY
AND
PROVIDING
AN
EFFECTIVE
DATE.
15
Be
It
Enacted
by
the
Legislature
of
the
State
of
Idaho:
16
SECTION
1.
That
Title
48,
Idaho
Code,
be,
and
the
same
is
hereby
amended
17
by
the
addition
thereto
of
a
NEW
CHAPTER
,
to
be
known
and
designated
as
Chap
-
18
ter
21,
Title
48,
Idaho
Code,
and
to
read
as
follows:
19
CHAPTER
21
20
LITIGATION
FINANCING
TRANSPARENCY,
NATIONAL
SECURITY,
AND
CONSUMER
21
PROTECTION
ACT
22
48
-
2101.
SHORT
TITLE.
This
act
shall
be
known
and
may
be
cited
as
the
23
"Litigation
Financing
Transparency,
National
Security,
and
Consumer
Pro
-
24
tection
Act."
25
48
-
2102.
DEFINITIONS.
As
used
in
this
chapter:
26
(1)
"Consumer"
means
any
person
who
is
or
may
become
a
plaintiff,
27
claimant,
or
complainant
in
conjunction
with
or
in
pursuit
of
a
legal
claim.
28
(2)
"Entity"
means
any
domestic
or
foreign
corporation,
partnership,
29
limited
partnership,
limited
liability
company,
trust,
fund,
plan,
or
any
30
other
business,
enterprise,
association,
or
organization
of
any
kind
or
na
-
31
ture.
32
(3)
"Foreign
adversary"
means:
33
(a)
A
foreign
government
of
a
foreign
country
identified
or
designated
34
as
a
foreign
adversary
pursuant
to
15
CFR
791.4,
as
in
effect
on
July
1,
35
2026;
36
(b)
Any
political
subdivision,
agency,
department,
or
political
party
37
of
a
foreign
government
identified
or
designated
as
a
foreign
adversary
38
pursuant
to
15
CFR
791.4,
as
in
effect
on
July
1,
2026;
or
39
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
or
attorneys
engaged
to
36
represent
a
consumer
in
conjunction
with
or
in
pursuit
of
a
legal
claim.
37
(8)(a)
"Litigation
financier"
means
any
person
or
group
of
persons
en
-
38
gaged
in,
or
formed,
created,
or
established
for
the
purpose
of
engaging
39
in,
the
business
of
litigation
financing
or
any
other
business
or
eco
-
40
nomic
activity
in
which
a
person
or
group
of
persons
receive
considera
-
41
tion
of
any
kind
in
exchange
for
providing
litigation
financing.
42
(b)
"Litigation
financier"
does
not
include:
43
(i)
A
party
to
the
legal
claim;
44
(ii)
A
legal
representative
engaged
directly,
or
indirectly
45
through
another
legal
representative,
to
represent
a
party
in
con
-
46
junction
with
or
in
pursuit
of
the
legal
claim;
or
47
(iii)
An
entity
or
insurer
with
a
preexisting
contractual
obliga
-
48
tion
to
indemnify
or
defend
a
party
to
a
legal
claim.
49
(9)
"Litigation
financing"
means:
50
3
(a)
The
financing,
funding,
advancing,
or
loaning
of
money
to
a
legal
1
representative
or
to
any
person
who
has
or
may
pursue
or
assert
a
legal
2
claim
or
who
is
or
may
become
a
plaintiff
in
pursuit
of
a
legal
claim
if:
3
(i)
The
legal
obligation
to
repay
all
or
a
portion
of
the
amount
4
financed,
funded,
advanced,
or
loaned
is
contingent
on
the
outcome
5
of
a
legal
claim
or
group
of
legal
claims;
6
(ii)
Repayment
is
required
only
if
the
person
prevails
in
conjunc
-
7
tion
with
or
in
pursuit
of
a
legal
claim
or
group
of
legal
claims;
8
or
9
(iii)
The
money
or
funds
for
the
repayment
of
any
amount
financed,
10
funded,
advanced,
or
loaned
is
derived
or
sourced,
directly
or
1
1
indirectly,
from
the
proceeds
of
or
other
consideration
realized
12
from
a
judgment,
award,
settlement,
verdict,
or
other
form
of
13
monetary
relief
the
person
or
legal
representative
may
receive
or
14
recover
in
conjunction
with
or
in
pursuit
of
a
legal
claim
or
group
15
of
legal
claims;
or
16
(b)
Any
agreement
or
arrangement
involving
the
financing,
funding,
ad
-
17
vancing,
or
loaning
of
money
to
a
legal
representative
if
the
repayment
18
of
all
or
a
portion
of
the
amount
financed,
funded,
advanced,
or
loaned
19
is
contingent
on
the
outcome
of
any
single
legal
claim
or
group
of
legal
20
claims
in
which
the
legal
representative
represents
one
(1)
or
more
con
-
21
sumers.
22
(10)(a)
"Litigation
financing
contract"
means
a
written
contract
in
23
which
a
person
agrees
to
provide
litigation
financing
to
any
person
in
24
consideration
for:
25
(i)
The
payment
of
interest,
fees,
or
other
consideration
to
the
26
person
providing
the
litigation
financing;
or
27
(ii)
Granting
or
assigning
to
the
person
providing
the
litigation
28
financing
a
right
to
receive
payment
from
the
value
of
any
proceeds
29
or
other
consideration
realized
from
any
judgment,
award,
settle
-
30
ment,
verdict,
or
other
form
of
monetary
relief
any
consumer,
le
-
31
gal
representative,
or
other
person
may
receive
or
recover
in
re
-
32
lation
to
the
legal
claim.
33
(b)
"Litigation
financing
contract"
does
not
include
any
agreement,
34
contract,
or
engagement
of
a
legal
representative
to
render
legal
ser
-
35
vices
to
a
consumer
on
a
contingency
fee
basis,
including
the
advance
-
36
ment
of
legal
costs
by
the
legal
representative,
in
which
the
services
37
or
costs
are
provided
to
or
on
behalf
of
a
consumer
by
the
legal
repre
-
38
sentative
representing
the
consumer
in
the
legal
claim.
39
(11)
"Person"
means
an
individual
or
an
entity.
40
(12)
"Proprietary
information"
means
any
documents,
records,
or
infor
-
41
mation
received
by
a
party
in
conjunction
with
or
in
pursuit
of
a
legal
claim
42
that
has
economic
or
commercial
value
in
any
person's
business
and
is:
43
(a)
Designated
as
proprietary
information
by
a
party
to
the
legal
44
claim;
or
45
(b)
Subject
to
a
court
order
to
protect,
seal,
or
otherwise
restrict
the
46
disclosure
or
sharing
of
the
documents,
records,
or
information.
47
(13)
"Regulated
lender"
has
the
same
meaning
as
provided
for
in
section
48
28
-
41
-
301,
Idaho
Code.
49
4
48
-
2103.
REGISTRATION
REQUIRED.
(1)
A
person
shall
not
engage
in
liti
-
1
gation
financing
in
this
state
unless
such
person
is
registered
with
the
sec
-
2
retary
of
state
as
a
litigation
financier
pursuant
to
the
provisions
of
this
3
chapter.
4
(2)
To
register
as
a
litigation
financier,
if
the
person
registering
is
5
an
entity,
the
entity
shall
be
active
and
in
good
standing
as
reflected
in
the
6
office
of
the
secretary
of
state.
7
(3)
To
register
as
a
litigation
financier,
a
person
shall
file
a
reg
-
8
istration
statement
with
the
secretary
of
state
setting
forth
the
following
9
information:
10
(a)
The
legal
name
of
the
litigation
financier;
1
1
(b)
The
physical
street
address
and
mailing
address
of
the
litigation
12
financier;
and
13
(c)
The
name,
physical
street
address,
and
mailing
address
of
the
lit
-
14
igation
financier's
registered
agent
in
this
state
who
is
authorized
to
15
accept
service
of
process
on
behalf
of
the
litigation
financier.
16
(4)
If
the
person
seeking
to
register
as
a
litigation
financier
is
an
17
entity,
the
following
information
shall
be
set
forth
in
the
registration
18
statement
with
respect
to
each
person
that
owns,
controls,
or
holds
with
the
19
power
to
vote
five
percent
(5%)
or
more
of
the
beneficial
interests
or
voting
20
interests
of
the
litigation
financier:
21
(a)
The
legal
name,
physical
street
address,
and
mailing
address
of
22
each
person;
23
(b)
If
the
person
is
an
individual,
a
disclosure
of
any
conviction
of
a
24
felony
involving
theft,
fraud,
deception,
or
dishonesty
during
the
past
25
ten
(10)
years;
26
(c)
If
the
person
is
an
entity,
and
if
such
information
is
not
other
-
27
wise
disclosed
in
the
entity's
filing
with
the
secretary
of
state
for
28
authorization
to
do
business
in
this
state,
a
list
of
all
individuals
29
who
are
directors,
officers,
trustees,
partners,
members,
or
managers
30
of
the
entity
and
each
subsidiary
of
the
entity,
if
any.
Such
list
shall
31
include,
for
each
individual,
the
information
required
to
be
provided
32
pursuant
to
this
subsection.
33
(5)
A
litigation
financier
subject
to
registration
pursuant
to
this
34
chapter
shall
file
an
updated
registration:
35
(a)
Annually;
and
36
(b)
Within
thirty
(30)
days
of
any
change
in
ownership,
control,
or
man
-
37
agement
of
the
entity
that
causes
the
information
required
to
be
pro
-
38
vided
pursuant
to
subsection
(4)
of
this
section
to
become
inaccurate.
39
(6)
The
secretary
of
state
is
authorized
to
prescribe
the
forms
and
the
40
filing
fees
the
secretary
of
state
considers
necessary
for
the
purposes
of
41
this
chapter.
42
48
-
2104.
LITIGATION
FINANCING
PROTECTIONS.
(1)
A
litigation
fi
-
43
nancier
shall
not:
44
(a)
Pay
or
offer
commissions,
referral
fees,
rebates,
or
other
forms
45
of
consideration
to
any
person
in
exchange
for
referring
a
consumer
or
a
46
consumer's
legal
representative
to
a
litigation
financier;
47
5
(b)
Accept
any
commissions,
referral
fees,
rebates,
or
other
forms
of
1
consideration
from
any
person
providing
any
goods
or
rendering
any
ser
-
2
vices
to
the
consumer;
3
(c)
Receive
or
recover
any
payment
that
exceeds
twenty
-
five
percent
4
(25%)
of
the
amount
of
any
judgment,
award,
settlement,
verdict,
or
5
other
form
of
monetary
relief
obtained
in
the
legal
claim
that
is
the
6
subject
of
the
litigation
contract;
7
(d)
Advertise
false
or
misleading
information
regarding
its
products
8
or
services;
9
(e)
Refer
or
require
any
consumer
to
hire
or
engage
any
person
providing
10
any
goods
or
rendering
any
services
to
the
consumer;
1
1
(f)
Fail
to
promptly
deliver
a
fully
completed
and
signed
litigation
12
financing
contract
to
the
consumer
and
the
consumer's
legal
representa
-
13
tive;
14
(g)
Attempt
to
secure
a
remedy
or
obtain
a
waiver
of
any
remedy,
includ
-
15
ing
but
not
limited
to
compensatory,
statutory,
or
punitive
damages,
16
that
the
consumer
may
or
may
not
be
entitled
to
pursue
or
recover
other
-
17
wise;
18
(h)
Offer
or
provide
legal
advice
to
the
consumer;
19
(i)
Assign,
including
securitizing,
a
litigation
financing
contract
in
20
whole
or
in
part;
21
(j)
Make,
influence,
or
direct
a
decision
regarding
a
legal
claim,
in
-
22
cluding
decisions
in
appointing
or
changing
counsel,
choice
or
use
of
23
expert
witnesses,
litigation
strategy,
and
settlement
or
other
resolu
-
24
tion;
or
25
(k)
Demand,
request,
receive,
or
exercise
any
right
to
influence,
af
-
26
fect,
or
otherwise
make
any
decision
in
the
handling,
conduct,
admin
-
27
istration,
litigation,
settlement,
or
resolution
of
any
legal
claim
in
28
which
the
litigation
financier
has
provided
litigation
financing.
All
29
rights
remain
solely
with
the
consumer
and
the
consumer's
legal
repre
-
30
sentative.
31
(2)
A
person
who
provides
any
goods
or
renders
any
services
to
the
con
-
32
sumer
that
are
related
to
the
litigation
being
financed
shall
not
have
a
fi
-
33
nancial
interest
in
litigation
financing
for
the
consumer
and
shall
not
re
-
34
ceive
any
commissions,
referral
fees,
rebates,
or
other
forms
of
considera
-
35
tion
from
any
litigation
financier
or
the
litigation
financier's
employees,
36
owners,
or
affiliates.
37
(3)
A
party,
attorney
or
law
firm
representing
a
party,
or
affiliated
38
attorney
or
law
firm
shall
not
disclose
or
share
any
proprietary
information
39
with
a
litigation
financier.
40
48
-
2105.
LITIGATION
FINANCING
CONTRACT
-
-
DISCLOSURES.
(1)
The
terms
41
and
conditions
of
a
litigation
financing
contract
shall
be
set
forth
in
a
42
fully
completed
written
contract
with
no
terms
or
conditions
omitted.
The
43
litigation
financing
contract
shall
contain
all
terms
and
conditions
at
the
44
time
it
is
signed
by
any
party
to
the
litigation
financing
contract.
45
(2)
Upon
execution
of
a
litigation
financing
contract,
a
litigation
fi
-
46
nancier
shall
not
amend
the
terms
or
conditions
of
the
litigation
financing
47
contract
without
full
disclosure
to
and
the
prior
written
consent
of
all
par
-
48
ties
to
the
litigation
financing
contract.
49
6
(3)
A
litigation
financing
contract
shall
set
forth
the
name,
physical
1
street
address,
and
mailing
address
of
the
litigation
financier
on
page
one
2
(1)
of
the
litigation
financing
contract.
3
(4)
A
litigation
financing
contract
shall
contain
clear
and
conspicu
-
4
ous
disclosures
immediately
above
the
consumer's
signature
line
informing
5
the
consumer
that:
6
(a)
The
contract
may
be
canceled
by
sending
written
notice
to
the
liti
-
7
gation
financier
within
five
(5)
days
after
signing
the
contract
or
re
-
8
ceiving
funds
from
the
litigation
financier,
whichever
is
later;
9
(b)
The
fee
amount
shall
be
disclosed
and
may
not
exceed
twenty
-
five
10
percent
(25%)
of
the
monetary
amount
received
from
a
verdict,
judgment,
1
1
or
settlement;
12
(c)
A
litigation
financier
shall
not
seek
to
influence
any
aspect
of
the
13
litigation,
as
such
right
shall
belong
only
to
the
consumer
and
its
le
-
14
gal
representative;
and
15
(d)
If
there
is
no
recovery
of
money
in
the
litigation
or
if
the
recov
-
16
ery
is
insufficient
to
pay
the
litigation
financier's
full
fee,
the
con
-
17
sumer
shall
owe
nothing
in
excess
of
its
monetary
recovery.
18
(5)
If
the
consumer's
legal
representative
is
a
party
to
a
litigation
19
financing
contract
related
to
the
consumer's
legal
claim
that
is
the
subject
20
of
the
litigation
financing
contract,
the
legal
representative
shall
dis
-
21
close
and
deliver
the
litigation
financing
contract
to
the
consumer.
22
48
-
2106.
DISCLOSURE
AND
DISCOVERY
OF
LITIGATION
FINANCING
CON
-
23
TRACTS.
(1)
Except
as
otherwise
stipulated
or
ordered
by
a
court
of
competent
24
jurisdiction,
a
consumer
or
the
consumer's
legal
representative
shall,
25
without
awaiting
a
discovery
request,
disclose
and
deliver
to
the
following
26
persons
the
litigation
financing
contract:
27
(a)
Each
party
to
the
legal
claim,
or
to
each
party's
legal
representa
-
28
tive;
and
29
(b)
The
court,
agency,
or
tribunal
in
which
the
legal
claim
may
be
pend
-
30
ing.
31
(2)
If
a
demand
for
payment
is
made
before
a
suit
is
filed,
a
party
who
32
makes
that
demand
shall,
upon
request
of
the
party
on
whom
demand
is
made,
33
disclose
and
deliver
any
litigation
financing
contract
to
the
party
on
whom
34
demand
is
made.
35
(3)
The
disclosure
obligations
pursuant
to
subsections
(1)
and
(2)
of
36
this
section
are
continuing
obligations,
and
within
thirty
(30)
days
of
en
-
37
tering
into
a
litigation
financing
contract
or
amending
an
existing
litiga
-
38
tion
financing
contract,
the
consumer
or
the
consumer's
legal
representa
-
39
tive
shall
disclose
and
deliver
any
new
or
amended
litigation
financing
con
-
40
tract.
41
(4)
The
existence
of
a
litigation
financing
contract
and
all
partici
-
42
pants
or
parties
to
the
litigation
financing
contract
are
permissible
sub
-
43
jects
of
discovery
in
any
legal
claim
to
which
litigation
financing
is
pro
-
44
vided
under
the
litigation
financing
contract.
45
48
-
2107.
EXEMPTIONS.
This
chapter
does
not
apply
to
the
following:
46
(1)
A
nonprofit
entity
that
is
exempt
from
federal
income
taxation
pur
-
47
suant
to
section
501(c)(3)
of
the
Internal
Revenue
Code
or
a
nonprofit
entity
48
7
that
provides
litigation
financing,
funding,
or
money
to
a
legal
representa
-
1
tive
to
represent
a
consumer
on
a
pro
bono
basis,
provided
that
the
nonprofit
2
entity
does
not
receive
in
consideration
for
the
litigation
financing
the
3
payment
of
interest,
fees,
or
other
consideration
in
excess
of
the
amount
of
4
attorney's
fees
and
litigation
expenses
incurred
in
conjunction
with
or
in
5
pursuit
of
the
legal
claim;
6
(2)
Any
litigation
financing
provided
by
an
entity
engaged
in
commerce
7
or
business
activity,
but
only
if
the
entity
does
not:
8
(a)
Charge
or
collect
any
interest,
fees,
or
other
consideration;
9
(b)
Obtain
or
receive
any
financial
interest
in
the
outcome
of
the
legal
10
claim;
or
1
1
(c)
Receive
any
right
to
recovery
or
payment
from
the
amount
of
any
12
judgment,
award,
settlement,
verdict,
or
other
form
of
monetary
relief
13
obtained
in
conjunction
with
or
in
pursuit
of
the
legal
claim;
or
14
(3)
A
regulated
lender
that
does
not
receive,
in
consideration
for
15
loaning
money
to
any
person,
a
right
to
receive
payment
pursuant
to
a
litiga
-
16
tion
financing
contract.
17
48
-
2108.
CLASS
ACTIONS.
In
addition
to
all
other
actions
to
which
this
18
chapter
applies,
this
chapter
shall
also
apply
to
any
civil
action
filed
or
19
certified
as
a
class
action
in
which
litigation
financing
is
provided.
A
20
litigation
financier
owes
a
fiduciary
duty
to
all
class
members
or
intended
21
beneficiaries
of
a
certified
class
and
shall
act
in
a
manner
consistent
with
22
the
litigation
financier's
fiduciary
duty
throughout
the
civil
action.
In
23
addition
to
the
disclosure
requirements
set
forth
in
this
chapter,
the
legal
24
representative
of
the
putative
class
shall
disclose
to
all
parties,
putative
25
class
members,
and
the
court
any
legal,
financial,
or
other
relationship
be
-
26
tween
the
legal
representative
and
the
litigation
financier.
A
class
member
27
is
entitled
to
receive
from
the
class
counsel
a
true
and
correct
copy
of
the
28
litigation
financing
contract
on
request.
29
48
-
2109.
PROHIBITION
ON
LITIGATION
FUNDING
BY
FOREIGN
ADVERSARIES
OR
30
FOREIGN
PERSONS
OF
CONCERN.
(1)
A
foreign
adversary
or
a
foreign
person
of
31
concern
may
not
engage
in
litigation
financing
in
this
state.
32
(2)
A
foreign
adversary
or
a
foreign
person
of
concern
may
not,
directly
33
or
indirectly,
invest
in,
finance,
fund,
or
loan
money
to
a
litigation
fi
-
34
nancier
engaged
in
litigation
financing
in
this
state.
35
(3)
A
litigation
financier
engaged
in
litigation
financing
in
this
36
state
may
not,
directly
or
indirectly:
37
(a)
Become
affiliated
with
or
maintain
an
affiliation
with
a
foreign
38
adversary
or
a
foreign
person
of
concern;
39
(b)
Receive
or
accept
money
or
funds
from
a
foreign
adversary
or
a
for
-
40
eign
person
of
concern;
or
41
(c)
Allow
a
foreign
adversary
or
a
foreign
person
of
concern
to
invest
42
in,
maintain
an
ownership
interest
in,
or
exercise
any
control
over
the
43
litigation
financier.
44
48
-
2110.
RESTRICTION
ON
DISCLOSURE
OF
PROPRIETARY
INFORMATION.
A
45
party
to
a
legal
claim
in
this
state
shall
not
disclose
to
or
share
with
a
46
8
foreign
person,
a
foreign
adversary,
or
a
foreign
person
of
concern
any
pro
-
1
prietary
information.
2
48
-
2111.
LIMITATIONS
ON
FOREIGN
LITIGATION
FUNDING.
A
foreign
person
3
who,
directly
or
indirectly:
engages
in
litigation
financing;
becomes
af
-
4
filiated
with
or
maintains
an
affiliation
with
a
litigation
financier;
fi
-
5
nances,
funds,
or
loans
money
to
a
litigation
financier;
or
invests
in,
main
-
6
tains
an
ownership
interest
in,
or
exercises
any
control
over
a
litigation
7
financier
shall
not:
8
(1)
Become
affiliated
with
or
maintain
an
affiliation
with
a
foreign
9
adversary
or
a
foreign
person
of
concern;
10
(2)
Receive
or
accept
money
or
funds
from
a
foreign
adversary
or
a
for
-
1
1
eign
person
of
concern;
or
12
(3)
Allow
a
foreign
adversary
or
a
foreign
person
of
concern
to
invest
13
in,
maintain
an
ownership
interest
in,
or
exercise
control
over
the
foreign
14
person.
15
48
-
2112.
REGISTRATION
AND
TRANSPARENCY
OF
FOREIGN
PERSONS.
(1)
A
for
-
16
eign
person
who
is
qualified
to
engage
in
litigation
financing
in
this
state
17
shall
comply
with
this
chapter
if
the
foreign
person
engages
in
litigation
18
financing
in
this
state.
19
(2)
A
litigation
financier
shall
disclose
in
writing
to
the
secretary
20
of
state
the
information
set
forth
in
subsection
(3)
of
this
section
if
the
21
litigation
financier
engages
in
any
of
the
following:
22
(a)
Becomes
affiliated
with
or
maintains
affiliation
with
a
foreign
23
person;
24
(b)
Receives
or
accepts
money
or
funds
from
a
foreign
person
for
any
25
purpose;
or
26
(c)
Allows
a
foreign
person
to
invest
in,
maintain
an
ownership
inter
-
27
est
in,
or
exercise
any
control
over
the
litigation
financier.
28
(3)
The
following
information
shall
be
disclosed
in
writing
to
the
sec
-
29
retary
of
state:
30
(a)
The
name
and
address
of
the
foreign
person
and
the
citizenship
of
31
the
foreign
person
or
the
country
of
incorporation,
formation,
or
reg
-
32
istration
of
the
foreign
person;
and
33
(b)
A
copy
of
each
litigation
financing
contract
in
which
the
foreign
34
person
is
entitled
to
receive
any
payment
under
the
contract.
35
(4)
The
litigation
financier
shall
provide
the
written
notice
required
36
pursuant
to
subsection
(2)
of
this
section
within
thirty
(30)
days
after
the
37
date
on
which
any
litigation
financing
agreement
is
executed
by
the
con
-
38
sumer.
39
48
-
2113.
ACT
VIOLATION
-
-
UNENFORCEABLE
CONTRACT.
(1)
Any
violation
40
of
this
chapter
by
a
litigation
financier
shall
render
the
litigation
fi
-
41
nancing
contract
unenforceable
by
the
litigation
financier
or
any
succes
-
42
sor
-
in
-
interest
to
the
litigation
financing
contract.
43
(2)
The
prevailing
party
in
any
litigation
under
this
chapter
shall
be
44
entitled
to
costs
and
reasonable
attorney's
fees
as
awarded
by
the
court.
45
9
48
-
2114.
APPLICABILITY.
This
chapter
shall
apply
both
to
any
legal
1
claim
commenced
on
or
after
July
1,
2026
and
to
any
litigation
financing
con
-
2
tract
executed
on
or
after
that
date.
3
SECTION
2.
SEVERABILITY.
The
provisions
of
this
act
are
hereby
declared
4
to
be
severable
and
if
any
provision
of
this
act
or
the
application
of
such
5
provision
to
any
person
or
circumstance
is
declared
invalid
for
any
reason,
6
such
declaration
shall
not
affect
the
validity
of
the
remaining
portions
of
7
this
act.
8
SECTION
3.
An
emergency
existing
therefor,
which
emergency
is
hereby
9
declared
to
exist,
this
act
shall
be
in
full
force
and
effect
on
and
after
10
July
1,
2026.
1
1