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 introduces new definitions for "commercial maintenance funding agreement" (for business-related claims) and "consumer maintenance funding agreement" (for individual claims), and clarifies what these agreements do not include, such as standard attorney-client contingency fee arrangements or health insurance. It requires both commercial and consumer maintenance funding providers to register with the Division of Consumer Protection, with specific operational rules for consumer agreements, including stricter disclosure requirements, a longer cancellation period, and prohibitions against influencing legal decisions or accepting referral fees from attorneys. The bill also adds provisions that prohibit commercial maintenance funding providers from engaging with foreign entities of concern and from accessing sealed court documents without specific court permission, and clarifies the priority of liens for maintenance funding providers. Finally, it mandates that if a maintenance funding provider willfully violates the chapter, the associated agreement becomes unenforceable.