Bill > HB0280

This bill modifies existing laws concerning "maintenance funding agreements," which are contracts where a third party provides funds to someone involved in a legal claim in exchange for a portion of the potential proceeds from that claim. The bill clarifies and expands the definitions of "commercial maintenance funding agreement" and "consumer maintenance funding agreement," specifying what types of agreements are included and excluded from these definitions, such as excluding agreements for legal services on a contingency fee basis or health insurance. It also introduces new definitions for "commercial maintenance funding provider" and "consumer maintenance funding provider," and outlines registration requirements for these providers with the Division of Consumer Protection. The bill imposes new operational rules for consumer maintenance funding providers, including prohibitions on paying referral fees to attorneys or healthcare providers and restrictions on influencing legal claim decisions, while also adding new prohibitions for commercial maintenance funding providers, such as not entering into agreements with foreign entities of concern or accessing sealed court documents. Furthermore, it enhances the requirements for consumer maintenance funding agreements, mandating clearer language, a longer rescission period, and specific consumer certifications, and clarifies that the assignment of the right to receive proceeds from a legal claim to a maintenance funding provider is permissible, with certain liens taking priority. Finally, the bill specifies that a willful violation of these provisions by a maintenance funding provider will render the associated agreement unenforceable and sets an effective date of May 6, 2026.

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https://le.utah.gov/~2026/bills/static/HB0280.html