Establishes provisions relating to the funding of legal actions, including foreign funding and litigation funding agreements

HB 3205 regulates litigation funding by prohibiting foreign governments or entities from investing in or controlling litigation funders within the state. It defines "litigation funders" (third parties providing funds for lawsuits) and explicitly excludes family members, regular attorneys, banks, and nonprofits from this definition. The bill requires funders to act in the best interest of the client, prohibits foreign principals from funding or influencing funders, and voids agreements violating these rules. Violations could lead to civil penalties, criminal charges (up to a class E felony), or a ban on providing funding. This bill directly affects litigation funders, foreign entities, and parties involved in civil lawsuits using third-party funding.