Bill > HB1329

This bill introduces comprehensive regulations for foreign third-party litigation financing in Colorado, establishing new transparency and operational requirements for foreign entities that provide funding for civil legal actions. The bill defines several key terms, including what constitutes a "foreign third-party litigation funder" and a "litigation financing agreement," and mandates that such funders must disclose their identity, address, and citizenship to the Attorney General within 35 days of filing a civil action or executing a financing agreement. Foreign third-party litigation funders are prohibited from deciding or influencing legal strategy, being assigned rights beyond receiving a share of proceeds, and sharing proprietary or national security-related information. The legislation requires these funders to submit their financing agreements under penalty of perjury and imposes penalties for non-compliance, treating violations as deceptive trade practices. The Attorney General is empowered to enforce these regulations, with potential consequences including fines and prohibiting a foreign funder from operating in the state. Starting in January 2026, the Department of Law must provide an annual report on the administration of these regulations, while ensuring the confidentiality of individual parties. The bill specifically exempts certain entities like nonprofit pro bono legal organizations and aims to increase transparency and protect against potential foreign interference in legal proceedings.

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https://leg.colorado.gov/bills/hb25-1329