Bill > H1863

This bill aims to strengthen protections for individuals involved in structured settlement payment transfers, particularly for vulnerable populations like minors and people with cognitive impairments. The legislation expands and clarifies definitions related to structured settlements, including terms like "independent professional advice," "minor," "periodic payments," and "protected person." It establishes comprehensive requirements for transferring structured settlement payment rights, mandating court approval and requiring detailed disclosure statements that outline the financial implications of the transfer. The bill introduces new registration requirements for structured settlement purchase companies, prohibits predatory practices such as coercion or harassment, and provides special protections for minors and individuals with mental or cognitive impairments by requiring court-appointed attorneys and ensuring that transfer proceeds are used for the individual's support and welfare. Additionally, the bill gives courts broader oversight and enforcement powers, including the ability to revoke or suspend a company's registration, impose injunctions, and allow the attorney general to pursue civil actions against violators. These provisions are designed to prevent exploitation and ensure that individuals fully understand and benefit from the transfer of their structured settlement payment rights. The bill will take effect on January 1, 2027, and will apply to all structured settlement transfer proceedings filed on or after that date.

Justice

https://malegislature.gov/Bills/194/H1863