A bill for an act relating to third-party litigation funding and including applicability provisions.

SF 2419, titled the "Third-Party Litigation Funding Transparency Act," regulates third-party funding of consumer legal claims in Iowa. It requires consumer litigation funding companies to register with the state, provide clear written contracts in everyday language, and fully disclose all fees and terms to consumers before funding. The law specifically affects companies providing nonrecourse funding for personal injury, medical malpractice, or similar civil claims, while excluding nonprofits, health insurers, standard loans, and attorneys working on contingency fees. Key provisions mandate that funding agreements must detail all charges (including interest and administrative fees), prohibit certain arrangements with attorneys, and include a 3-day right to cancel the contract.