summary
Introduced
01/08/2026
01/08/2026
In Committee
01/16/2026
01/16/2026
Crossed Over
Passed
Dead
Introduced Session
2026 Regular Session
Bill Summary
An act relating to litigation financing consumer protection; providing a short title; designating part I of ch. 69, F.S., entitled “General Provisions”; creating part II of ch. 69, F.S., entitled “Litigation Financing”; creating s. 69.101, F.S.; defining terms; creating s. 69.103, F.S.; authorizing courts to consider the existence of a litigation financing agreement under certain circumstances; creating s. 69.105, F.S.; prohibiting specified acts by litigation financiers; providing that all rights to make certain decisions in a legal proceeding remain solely with the parties to such legal proceeding; creating s. 69.107, F.S.; requiring certain parties to a legal proceeding, or their counsels of record, which have entered into a litigation financing agreement with a foreign person, a foreign principal, or a sovereign wealth fund to file and serve a notice identifying specified information with the court, agency, or tribunal and all other parties to the legal proceeding within a specified timeframe; requiring that such notice also be filed with the Department of Financial Services and the Office of the Attorney General; providing that certain information in a litigation financing agreement is not required to be disclosed; authorizing the court, agency, or tribunal to order that the notice or supporting documentation be filed under seal and issue protective orders to safeguard proprietary or confidential information; prohibiting a foreign litigation financier or person acting on its behalf from using a domestic entity or affiliate to conceal or evade such disclosure requirements or from receiving, transmitting, or sharing certain information obtained through litigation financing with certain foreign persons, foreign principals, or sovereign wealth funds; providing applicability; providing for sanctions; providing construction; creating s. 69.109, F.S.; providing that a litigation financing agreement is void and unenforceable in specified circumstances; providing for enforcement of specified violations under the Florida Deceptive and Unfair Trade Practices Act; authorizing any court, agency, or tribunal of competent jurisdiction to impose fines or other sanctions it deems appropriate for violations of certain provisions; providing severability; providing retroactive applicability; providing applicability; providing an effective date.
AI Summary
This bill, titled the "Litigation Investment Safeguards and Transparency Act," establishes new regulations for litigation financing, which is defined as a transaction where a litigation financier provides funds for a legal proceeding in exchange for a payment contingent on the outcome. The bill prohibits litigation financiers from controlling the legal proceedings, receiving a larger share of the proceeds than the plaintiffs after fees and costs, or paying referral fees to attorneys or healthcare practitioners. Crucially, if a party to a legal proceeding or their attorney has a litigation financing agreement with a foreign entity, foreign principal (which includes foreign governments or their officials), or a sovereign wealth fund (an investment fund owned or controlled by a foreign entity), they must notify the court, all other parties, the Department of Financial Services, and the Attorney General within a specified timeframe, disclosing the foreign financier's identity and any foreign entities owning or controlling 3% or more of the financier. While proprietary information like dollar amounts can remain confidential and protected by court orders, foreign financiers are barred from using domestic entities to hide disclosures or sharing sensitive information with unauthorized foreign parties. Violations of these provisions can lead to voided agreements, enforcement under Florida's Deceptive and Unfair Trade Practices Act, and court-imposed fines or sanctions, with the disclosure requirements applying to proceedings initiated or pending after July 1, 2026.
Sponsors (1)
Other Sponsors (1)
Rules (Senate)
Last Action
Placed on Calendar, on 2nd reading (on 02/04/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.flsenate.gov/Session/Bill/2026/1396 |
| BillText | https://www.flsenate.gov/Session/Bill/2026/1396/BillText/c1/HTML |
| Analysis - Rules (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2026/1396/Analyses/2026s01396.rc.PDF |
| https://www.flsenate.gov/Session/Bill/2026/1396/Amendment/707190/HTML | |
| Analysis - Rules (Pre-Meeting) | https://www.flsenate.gov/Session/Bill/2026/1396/Analyses/2026s01396.pre.rc.PDF |
| Analysis - Judiciary (Post-Meeting) | https://www.flsenate.gov/Session/Bill/2026/1396/Analyses/2026s01396.ju.PDF |
| Analysis - Judiciary (Pre-Meeting) | https://www.flsenate.gov/Session/Bill/2026/1396/Analyses/2026s01396.pre.ju.PDF |
| BillText | https://www.flsenate.gov/Session/Bill/2026/1396/BillText/Filed/HTML |
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