AN ACT RELATING TO COMMERCIAL LAW -- GENERAL REGULATORY PROVISIONS -- THIRD-PARTY LITIGATION FINANCING CONSUMER PROTECTION ACT

This bill requires third-party companies that fund lawsuits (called "litigation financiers") to register with Rhode Island's Department of Business Regulation and post a $50,000 bond. It bans financiers from paying lawyers for referrals, making misleading ads, controlling legal cases, or reporting consumers to credit agencies if funds are insufficient. The law mandates clear written contracts for consumers and prohibits financiers from influencing settlement decisions or waiving consumer rights. It directly affects litigation financiers, consumers in lawsuits, and legal representatives by creating transparency and preventing conflicts of interest.