Bill > H0646

This bill, titled the Litigation Financing Transparency, National Security, and Consumer Protection Act, establishes new regulations for litigation financing, which is when an entity provides money to fund a legal claim in exchange for a portion of any recovery. Key provisions include requiring litigation financiers to register with the Secretary of State, prohibiting them from charging excessive interest or taking more than 25% of any recovered amount, and preventing them from influencing legal decisions or offering legal advice. The bill also mandates clear disclosures to consumers about the terms of litigation financing contracts, including a five-day cancellation period, and requires these contracts to be disclosed to other parties in the lawsuit. Importantly, it prohibits "foreign adversaries" (countries or entities designated as such by federal regulations) and "foreign persons of concern" (individuals or entities linked to foreign adversaries or on federal watchlists) from engaging in litigation financing in the state and restricts the disclosure of proprietary information to such entities. The bill also makes litigation financiers jointly and severally liable for costs and sanctions awarded against a consumer or their legal representative, and requires foreign entities involved in litigation financing to register and disclose their affiliations.

Business and Industry

Business Committee (House)

https://legislature.idaho.gov/sessioninfo/2026/legislation/H0646/