LITIGATION FINANCING TRANSPARENCY ACT

HB 223, the "Litigation Financing Transparency Act," requires legal counsel to disclose any litigation financing agreements to all parties in a civil case within 30 days of entering the agreement. It directly affects individuals or businesses (called "funded consumers") who receive financing for lawsuits and the "litigation financiers" providing that funding. Key provisions mandate full disclosure of financing terms, prohibit financiers from directing legal strategy or paying referral fees, and exclude certain agreements like those with health insurers or 501(c)(3) organizations seeking limited damages. The law aims to increase transparency in how lawsuit funding is structured without restricting standard contingency fee arrangements.