HB 25-1329
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
HB 25-1329: FOREIGN THIRD-PARTY LITIGATION FINANCING
Prime Sponsors:
Rep. Mabrey; Soper
Sen. Frizell; Gonzales J.
Published for: House Judiciary
Drafting number: LLS 25-1033
Fiscal Analyst:
Clayton Mayfield, 303-866-5851
clayton.mayfield@coleg.gov
Version: Initial Fiscal Note
Date: April 14, 2025
Fiscal note status: The fiscal note reflects the introduced bill. Due to time constraints, this analysis is
preliminary and will be updated following further review and any additional information received.
Summary Information
Overview. The bill requires foreign third-party litigation funders to provide certain information to the
Attorney General and creates a deceptive trade practice for violations.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
Minimal State Revenue Minimal State Workload
Appropriations. No appropriation is required.
Table 1
State Fiscal Impacts
Type of Impact
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $0 $0
State Expenditures $0 $0
Transferred Funds $0 $0
Change in TABOR Refunds $0 $0
Change in State FTE 0.0 FTE 0.0 FTE
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April 14, 2025 HB 25-1329
Summary of Legislation
The bill requires foreign third-party litigation funders, who are parties that agree to finance legal
costs in exchange for a portion of settlement or judgment funds if the party prevails in a civil
case, to submit certain information to the Attorney General. This information must identify
funders and include a copy of litigation financing agreements. Information must be submitted
upon filing of civil actions, or within 35 days if civil actions are filed prior to the execution of
financing agreements. Funders are prohibited from:
entering into financing agreements where the funds are sourced in whole or in part from a
foreign entity;
utilizing a domestic entity to provide funds;
interfere with the right of appropriate parties to direct the course of a civil action;
assigning a right to profits other than a share of civil action proceeds as detailed in financing
agreements; and
sharing proprietary or national security information obtained as a result of financing
agreements with anyone who is not a party to or an attorney involved in the civil action.
Financing agreements are subject to discovery under court rules. Financing agreements that do
not comply with the bill’s requirements are void and constitute a deceptive trade practice. The
Attorney General can enforce compliance with the bill and impose sanctions to the foreign
third-party. The bill does not apply to nonprofit organizations that represent clients on a pro
bono basis.
Finally, the Attorney General is required to annually report information on foreign involvement
in court cases to the General Assembly starting January 1, 2026.
State Revenue
Under the Colorado Consumer Protection Act, a person committing a deceptive trade practice
may be subject to a civil penalty of up to $20,000 for each violation. Additional penalties may be
imposed for subsequent violations of a court order or injunction. This revenue is classified as a
damage award and not subject to TABOR. Given the uncertainty about the number of cases that
may be pursued by the Attorney General and district attorneys, as well as the wide range in
potential penalty amounts, the fiscal note cannot estimate the potential impact of these civil
penalties.
Additionally, the bill may increase filing fee revenue to the Judicial Department from an increase
in civil case filings from parties other than the Attorney General or district attorneys who file
deceptive trade practice cases. Revenue from filing fees is subject to TABOR. Page 3
April 14, 2025 HB 25-1329
State Expenditures
The bill increases state expenditures in the Department of Law and the Judicial Department as
discussed below.
Department of Law
Workload in the Department of Law will increase if additional deceptive trade practice
complaints are filed. The department will review complaints under the bill and prioritize
investigations as necessary within the overall number of deceptive trade practice complaints and
available resources.
Additionally, workload will increase for the department to receive, review, and perform other
required duties, including reporting to the General Assembly, regarding financing agreements
with foreign third parties. The fiscal note assumes that financing agreements covered by the bill
are relatively rare, with fewer than 12 executed per year in the state. Based on this, it is further
assumed that any workload increase for the department regarding financing agreements that is
not related to deceptive trade practice enforcement will be minimal. No change in
appropriations is required.
Judicial Department
The trial courts in the Judicial Department may have an increase in cases filed under the
Colorado Consumer Protection Act from the addition of a new deceptive trade practice. It is
assumed that litigation funders will abide by the law and that any violation of the legislation will
result in minimal number of new cases. The fiscal note assumes that this can be accomplished
within existing resources and that no change in appropriations is required.
Local Government
Similar to the state, if district attorneys receive deceptive trade practice complaints related to
the new deceptive trade practice under the bill, workload will increase to investigate complaints
and seek relief when appropriate. It is assumed most such cases will be handled at the state level
by the Attorney General.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed.
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April 14, 2025 HB 25-1329
State and Local Government Contacts
Judicial Law
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.