Bill

Bill > H0946


ID H0946

ID H0946
Adds to existing law to establish the Litigation Financing Transparency, National Security, and Consumer Protection Act.


summary

Introduced
03/25/2026
In Committee
03/25/2026
Crossed Over
Passed
Dead
04/02/2026

Introduced Session

2026 Regular Session

Bill Summary

RELATING TO THE LITIGATION FINANCING TRANSPARENCY, NATIONAL SECURITY, AND CONSUMER PROTECTION ACT; AMENDING TITLE 48, IDAHO CODE, BY THE ADDITION OF A NEW CHAPTER 21, TITLE 48, IDAHO CODE, TO PROVIDE A SHORT TITLE, TO DEFINE TERMS, TO REQUIRE CERTAIN REGISTRATION, TO ESTABLISH LITIGATION FINANCING PROTECTIONS, TO PROVIDE FOR LITIGATION FINANCING CONTRACTS AND DISCLOSURES, TO PROVIDE FOR DISCLOSURE AND DISCOVERY OF LITIGATION FINANCING CONTRACTS, TO ESTABLISH EXEMPTIONS, TO PROVIDE CERTAIN AP- PLICABILITY REGARDING CLASS ACTIONS, TO PROHIBIT LITIGATION FUNDING BY FOREIGN ADVERSARIES, TO RESTRICT DISCLOSURE OF PROPRIETARY INFOR- MATION, TO ESTABLISH LIMITATIONS ON FOREIGN LITIGATION FUNDING, TO PROVIDE FOR THE REGISTRATION AND TRANSPARENCY OF FOREIGN PERSONS, TO ESTABLISH PROVISIONS REGARDING CHAPTER VIOLATIONS, AND TO PROVIDE FOR CHAPTER APPLICABILITY; PROVIDING SEVERABILITY; AND DECLARING AN EMER- GENCY AND PROVIDING AN EFFECTIVE DATE.

AI Summary

This bill, titled the Litigation Financing Transparency, National Security, and Consumer Protection Act, establishes new regulations for litigation financing, which is when a third party provides funds for a lawsuit in exchange for a portion of any settlement or award. Key provisions include requiring litigation financiers to register with the Secretary of State and disclose information about their ownership, and prohibiting them from paying referral fees or influencing the outcome of a legal claim, with their recovery capped at 25% of the award. The bill also mandates that litigation financing contracts be in writing, clearly disclose terms to consumers, and be provided to opposing parties and the court upon request. Crucially, it prohibits "foreign adversaries" (countries or entities designated as such by federal regulations) and "foreign persons of concern" (entities linked to foreign adversaries or on U.S. government watchlists) from engaging in litigation financing or investing in it within the state, and restricts the disclosure of proprietary information to such entities. The act applies to legal claims and contracts initiated on or after July 1, 2026.

Committee Categories

Business and Industry

Sponsors (0)

No sponsors listed

Other Sponsors (1)

Ways and Means Committee (House)

Last Action

Reported Printed and Referred to Business (on 03/25/2026)

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