Bill > HB2755

This bill establishes a comprehensive regulatory framework for litigation financing in Arizona, creating new legal definitions and oversight mechanisms. The legislation defines litigation financing as any agreement where a person provides funding for legal action in exchange for repayment contingent on the case's outcome, while specifically excluding certain types of financial arrangements like personal loans, contingency fee agreements, and healthcare-related payments. The bill requires litigation financiers to maintain "litigation blind pools" where investors cannot know specific details about individual cases, and mandates strict confidentiality regarding proprietary and confidential information. The Attorney General is granted exclusive enforcement powers, including the ability to investigate potential violations through document examinations, sworn testimony, and court-approved impoundment of records. If violations are found, the Attorney General can seek injunctions, require restitution, and potentially prohibit a violator from engaging in certain trades or occupations. The law applies to all litigation financing within Arizona, whether pending or commenced after the effective date, but does not apply to financiers operating solely outside the state. The bill aims to regulate the growing litigation financing industry by establishing transparency requirements, protecting investor and litigant confidentiality, and providing a mechanism for governmental oversight.

Justice

https://apps.azleg.gov/BillStatus/BillOverview/83218