LC 49 2394S
The House Committee on Rules offers the following substitute to SB 69:
A BILL TO BE ENTITLED
AN ACT
To amend Title 7 and Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia1
Annotated, relating to banking and finance, and depositions and discovery under the2
"Georgia Civil Practice Act," respectively, so as to regulate third-party litigation financing3
practices in this state; to enact a new chapter regulating litigation financing practices; to4
provide for definitions; to require and provide for the registration of litigation financiers; to5
prohibit any person with relevant affiliations with foreign persons, foreign principals, or6
sovereign wealth funds from serving as litigation financiers; to require amended registration7
as a litigation financier; to provide for forms and filing fees; to provide for public disclosure8
of documents and information; to provide for denial of registration or amended registration9
as a litigation financier; to provide for notice of such denials; to provide for appeal of such10
denials; to provide for prohibitions applicable to litigation financiers and exceptions; to11
provide for joint and several liability for certain litigation financiers; to require litigation12
financing contracts to include indemnification provisions; to require litigation financing13
agreements to be memorialized in writing by litigation financing contracts; to provide for14
required provisions and disclosures to be included in litigation financing contracts; to require15
and provide for certain disclosures and acknowledgments in litigation financing agreements;16
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to provide for exemptions; to provide for the cancellation of litigation financing agreements;17
to provide for a criminal offense; to provide for the authority of the Attorney General and18
prosecuting attorneys to institute criminal proceedings; to provide for penalties; to authorize19
and provide for the department's participation in the nation-wide multistate licensing system20
and registry and for matters related thereto; to provide for the authority of the department and21
the commissioner of banking and finance; to provide for the discovery of litigation financing22
agreements in civil actions; to provide a short title; to provide for related matters; to provide23
for effective dates and applicabilities; to repeal conflicting laws; and for other purposes.24
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:25
SECTION 1.26
This Act shall be known and may be cited as the "Georgia Courts Access and Consumer27
Protection Act."28
SECTION 2.29
Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is30
amended by adding a new chapter to read as follows:31
"CHAPTER 1032
7-10-1.33
As used in this chapter, the term:34
(1) 'Affiliate' or 'affiliated' means a person that directly, or indirectly through one or more35
intermediaries, controls, is controlled by, or is under common control with another36
person.37
(2) 'Commissioner' means the commissioner of banking and finance.38
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(3) 'Consumer' means any individual who resides, is present, or is domiciled in this state39
or who is or has standing to become a plaintiff, claimant, or complainant in a civil action,40
administrative proceeding, legal claim, or other legal proceeding or in pursuit of any41
claim or cause of action in this state.42
(4) 'Department' means the Department of Banking and Finance.43
(5) 'Entity' means any domestic or foreign corporation, partnership, limited partnership,44
limited liability company, trust, fund, plan, or any other business, enterprise, association,45
or organization of any kind or nature.46
(6) 'Foreign person' means an individual or an entity that is not:47
(A) A citizen of the United States;48
(B) An alien lawfully admitted for permanent residence in the United States;49
(C) An unincorporated association with a majority of members who are citizens of the50
United States or aliens lawfully admitted for permanent residence in the United States;51
or52
(D) A corporation that is incorporated in the United States.53
(7) 'Foreign principal' means:54
(A) The government or a government official of any country other than the United55
States;56
(B) A political subdivision or political party of a country other than the United States;57
or58
(C) A partnership, association, corporation, organization, or other combination of59
persons organized under the laws of or having its principal place of business in a60
country other than the United States whose shares or other ownership interest is owned61
by the government or a government official of a country other than the United States62
or is owned by a political subdivision or political party of a country other than the63
United States.64
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(8) 'Legal representative' means any attorney, group of attorneys, or law firm duly65
licensed and authorized to practice law and to represent a consumer in a civil action,66
administrative proceeding, legal claim, or other legal proceeding seeking to recover67
damages in this state.68
(9) 'Litigation financier' means any person engaged in or formed, created, or established69
for the purpose of engaging in any kind of business or economic activity that involves70
providing litigation financing in exchange for consideration of any kind.71
(10)(A) 'Litigation financing agreement' or 'litigation financing' means an agreement72
in which a litigation financier agrees to provide financing to a consumer or entity that73
is or has standing to become a party to a civil action, administrative proceeding, legal74
claim, or other legal proceeding seeking to recover monetary damages, or to counsel75
for such consumer or entity, in exchange for a right to receive payment, which right is76
contingent in any respect on the outcome of such action, claim, or proceedings by77
settlement, judgment, or otherwise, or on the outcome of any matter within a portfolio78
that includes such action, claim, or proceedings and involves the same legal79
representative or affiliated representative.80
(B) Such term shall not include:81
(i) An agreement wherein a legal representative consents to provide legal services on82
a contingency fee basis or to advance his or her client's legal costs, and where such83
services or costs are provided by the legal representative in accordance with the84
Georgia Rules of Professional Conduct maintained and enforced by the State Bar of85
Georgia;86
(ii) A preexisting contractual obligation to indemnify or defend a party to a civil87
action, administrative proceeding, legal claim, or other legal proceeding seeking to88
recover monetary damages, or any other legal proceeding;89
(iii) Any obligation of a health insurer to pay any sums for healthcare for an injured90
person under the terms of a health insurance plan or agreement;91
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(iv) Any obligation to repay a financial institution, as such term is defined in Code92
Section 10-5A-1, for loans made directly to a party to a civil action, administrative93
proceeding, legal claim, or other legal proceeding seeking to recover monetary94
damages, or such party's legal representative, provided that such repayment of such95
loan is not contingent upon the outcome of such action, claim, or proceedings, or on96
the outcome of any matter within a portfolio that includes such action, claim, or97
proceedings, and involves the same legal representative or affiliated legal98
representative;99
(v) Funding provided to a nonprofit organization that is funded by private donations,100
represents one or more clients on a pro-bono, no-cost basis, and seeks only injunctive101
relief on behalf of its clients; provided, however, that the provisions of this division102
shall not be construed to prohibit or otherwise affect any award of costs or attorney's103
fees to such nonprofit organization seeking only injunctive relief on behalf of a client104
that such nonprofit organization represents on a pro-bono, no-cost basis, or to such105
client; or106
(vi) Banks, institutional investors, and persons that provide financing to a litigation107
financier but do not engage in the business of litigation financing; provided, however,108
that this exclusion shall not apply to banks, institutional investors, and persons109
affiliated with a litigation financier.110
(11) 'Litigation financing contract' or 'contract' means a written contract memorializing111
the terms and conditions of a litigation financing agreement.112
(12) 'Sovereign wealth fund' means an investment fund owned or controlled by a foreign113
principal or an agent of such foreign principal.114
7-10-2.115
(a) It is unlawful for a person to engage in litigation financing in this state unless such116
person is registered as a litigation financier as provided under this Code section.117
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(b) Each person registering as a litigation financier shall be authorized to do business in118
this state.119
(c) To register as a litigation financier, a person shall file with the department a registration120
statement setting forth the following:121
(1) The legal name of such person;122
(2) The principal business address and preferred mailing address of such person;123
(3) The telephone number and email address through which such person may be124
contacted;125
(4) The name, principal business address, and preferred mailing address of such person's126
registered agent that is authorized to accept service of process on behalf of such person;127
(5) The name, principal business address, and citizenship or country of incorporation or128
registration of any foreign person, foreign principal, or sovereign wealth fund affiliated129
with the person seeking to register as a litigation financier under this Code section in any130
capacity directly or indirectly related to such person's litigation financing business; and131
(6) Any other information deemed necessary by the department.132
(d) If the person seeking to register as a litigation financier is an entity, such entity shall133
file with the department a registration statement that provides, with respect to each person134
that directly or indirectly owns, controls, holds with the power to vote, or holds proxies135
representing 10 percent or more of the voting shares of the litigation financier, the136
following:137
(1) The legal name of each such person;138
(2) The principal business address and preferred mailing address of each such person;139
(3) If the person is an individual:140
(A) Such individual's occupation;141
(B) Any offices and positions held with the person seeking to register as a litigation142
financier during the past five years;143
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(C) Any conviction of a crime other than misdemeanor traffic violations during the144
past ten years; and145
(D) The name, principal business address, and citizenship or country of incorporation146
or registration of any foreign person, foreign principal, or sovereign wealth fund147
affiliated with such individual in any capacity directly or indirectly related to such148
individual's litigation financing business;149
(4) If the person is an entity:150
(A) The nature of the entity's business operations during the past five years or a151
description of the business intended to be undertaken by the entity and such entity's152
subsidiaries, if any;153
(B) A list of all individuals who are or who have been selected to become directors or154
officers of the entity and each subsidiary of the entity, if any. Such list shall include for155
each individual the information required by paragraph (3) of this subsection; and156
(C) The name, principal business address, and citizenship or country of incorporation157
or registration of any foreign person, foreign principal, or sovereign wealth fund158
affiliated with the entity in any capacity directly or indirectly related to such entity's159
litigation financing business; and160
(5) Any other information deemed necessary by the department.161
(e) No person shall be registered as a litigation financier or shall engage in litigation162
financing in this state that is, in any capacity directly or indirectly related to such person's163
litigation financing business, affiliated with any foreign government or foreign164
nongovernment person or entity designated by the United States Secretary of Commerce165
as a foreign adversary pursuant to 15 C.F.R. Section 7.4, or any foreign person, foreign166
principal, or sovereign wealth fund thereof.167
(f) A person subject to registration under this Code section shall file, within 30 days of any168
change to the most recently filed registration or within 30 days of when such registration169
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becomes inaccurate or incomplete in any respect, an amended registration with the170
department.171
(g) The commissioner is authorized to prescribe the forms and the filing fees that he or she172
deems necessary for the purposes of this chapter.173
(h) All documents and information filed with the department pursuant to this Code section174
are public records subject to disclosure pursuant to Article 4 of Chapter 18 of Title 50.175
7-10-3.176
(a) The department may deny a registration to act as a litigation financier or deny a177
registered litigation financier's amended registration pursuant to subsection (f) of Code178
Section 7-10-2 if the department finds that:179
(1) The requirements of this chapter have not been met; or180
(2) The applicant or registrant; any person who is a director, officer, partner, or owner181
of the applicant or registrant; or any individual who directs the affairs of or controls or182
establishes policy for the applicant or registrant has, within the last ten years, been183
convicted of a felony in any jurisdiction or of a crime which, if committed within this184
state, would constitute a felony under the laws of this state. For the purposes of this185
paragraph, a person shall be deemed to have been convicted of a crime if such person186
shall have pleaded guilty or nolo contendere to a charge thereof before a court or federal187
magistrate or shall have been found guilty of such crime by the decision or judgment of188
a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement189
of sentence or the suspension thereof and regardless of whether first offender treatment190
without adjudication of guilt pursuant to the charge was entered or an adjudication or191
sentence was otherwise withheld or not entered on such charge, unless and until such plea192
of guilty or such decision, judgment, or verdict shall have been set aside, reversed, or193
otherwise abrogated by lawful judicial process or until probation, sentence, or both, of194
a first offender without adjudication of guilt have been successfully completed and195
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documented or unless the person convicted of the crime shall have received a pardon for196
such crime from the President of the United States or the governor or other pardoning197
authority in the jurisdiction where the conviction occurred.198
(b) Notice of the department's intention to enter an order denying a registration or an199
amended registration shall be provided to the applicant or registrant in writing, sent by200
registered or certified mail or statutory overnight delivery addressed to the principal place201
of business of such applicant or registrant. If a person refuses to accept service of the202
notice by registered or certified mail or statutory overnight delivery, the notice or order203
shall be served by the commissioner or the commissioner's authorized representative under204
any other method of lawful service, and the person shall be personally liable to the205
commissioner for a sum equal to the actual costs incurred to serve the notice or order. 206
Such liability shall be paid upon notice and demand by the commissioner or the207
commissioner's authorized representative and shall be assessed and collected in the same208
manner as other fees or fines administered by the commissioner.209
(c) Within 20 days of the date of the notice of intention to enter an order denying a210
registration or an amended registration, the applicant or registrant may request in writing211
a hearing to contest the order. If a hearing is not requested in writing within 20 days of the212
date of such notice of intention, the department shall enter a final order regarding the213
denial. Any final order of the department denying a registration or an amended registration214
shall state the grounds upon which it is based and shall be effective on the date of issuance. 215
A copy of such order shall be forwarded promptly by mail addressed to the principal place216
of business of such applicant or registrant.217
(d) A decision by the department denying a registration or an amended registration shall218
be subject to review in accordance with Chapter 13 of Title 50, the 'Georgia Administrative219
Procedure Act.'220
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7-10-4.221
(a) A litigation financier shall not:222
(1) Direct, or make any decisions with respect to, the course of any civil action,223
administrative proceeding, legal claim, or other legal proceeding for which such litigation224
financier has provided litigation financing, or any settlement or other disposition thereof. 225
Such prohibition includes, but is not limited to, decisions in appointing or changing legal226
representatives, choice or use of expert witnesses, and litigation strategy. All rights to227
make decisions with respect to the course and settlement or other disposition of the228
subject civil action, administrative proceeding, legal claim, or other legal proceeding shall229
remain solely with the parties to such action, claim, or proceedings and their legal230
representatives. The provisions of this paragraph shall be strictly construed in favor of231
the individual or entity receiving litigation financing and against the litigation financier;232
(2) Pay or offer commissions, referral fees, rebates, or other forms of consideration to233
any person, including, but not limited to, an attorney or any employee of an attorney or234
a law firm, in exchange for referring a consumer or such consumer's legal representative235
to a litigation financier; provided, however, that this paragraph shall not apply to an236
employee, agent, or affiliate of the litigation financier;237
(3) Accept any commissions, referral fees, rebates, or other forms of consideration from238
any person, including, but not limited to, an attorney or any employee of an attorney or239
a law firm, for providing any goods or rendering any services to the consumer; provided,240
however, that this paragraph shall not apply to an employee, agent, or affiliate of the241
litigation financier;242
(4) Contract for, receive, or recover, whether directly or indirectly, any amount greater243
than an amount equal to the share of the proceeds collectively recovered by the plaintiffs244
or claimants in a civil action, administrative proceeding, legal claim, or other legal245
proceeding seeking to recover monetary damages financed by a litigation financing246
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agreement after the payment of any attorney's fees and costs owed in connection to such247
action, claim, or proceedings;248
(5) Advertise false or misleading information regarding its products or services;249
(6) Refer or require any consumer to hire or engage any person providing any goods or250
rendering any services to the consumer;251
(7) Fail to promptly deliver a fully completed and signed litigation financing contract to252
the consumer and the consumer's legal representative;253
(8) Attempt to secure a remedy or obtain a waiver of any remedy, including, but not254
limited to, compensatory, statutory, or punitive damages, that the consumer may or may255
not be entitled to pursue or recover otherwise;256
(9) Offer or provide legal advice to the consumer;257
(10) Assign or securitize a litigation financing agreement in whole or in part; provided,258
however, that, if the litigation financier retains responsibility for collecting payment,259
administering, and otherwise enforcing the litigation funding contract, the prohibition260
provided in this paragraph shall not apply to an assignment:261
(A) To a wholly owned subsidiary of the litigation financier;262
(B) To an affiliate of the litigation financier that is under common control; or263
(C) Granting a security interest under Article 9 of the Uniform Commercial Code or264
as otherwise permitted by law; or265
(11) Report a consumer to a credit reporting agency if insufficient funds remain to repay266
the litigation financier in full from the proceeds received from any judgment, award,267
settlement, verdict, or other form of monetary relief obtained in a civil action,268
administrative proceeding, legal claim, or other legal proceeding that is the subject of the269
litigation financing agreement.270
(b) No person that provides any goods or renders any services related to the litigation to271
the consumer shall have a financial interest in litigation financing provided by a litigation272
financier to such consumer, and no such person shall receive any commissions, referral273
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fees, rebates, or other forms of consideration from any litigation financier or the litigation274
financier's agents, employees, owners, or affiliates.275
7-10-5.276
(a) A litigation financier that agrees to provide $25,000.00 or more in funding pursuant to277
a litigation financing agreement may be jointly and severally liable for any award or order278
imposing or assessing costs or monetary sanctions for frivolous litigation against a279
consumer, entity, or a legal representative of such consumer or entity arising from or280
relating to any civil action, administrative proceeding, legal claim, or other legal281
proceeding for which the litigation financier is providing litigation financing; provided,282
however, that where the litigation financier's right of repayment is a fixed amount set by283
contract, the liability of such litigation financier shall not exceed the right of repayment less284
the amount already extended.285
(b) In each litigation financing contract, the litigation financier shall agree to indemnify,286
and shall indemnify even without such agreement, the plaintiffs and claimants to the civil287
action, administrative proceeding, legal claim, or other legal proceeding that is the subject288
of such litigation financing agreement and such plaintiffs' and claimants' legal289
representatives against any adverse costs, attorney's fees, damages, or sanctions that may290
be ordered or awarded against such persons in such action, claim, or proceedings; provided,291
however, that such indemnification shall not be required or enforceable for adverse costs,292
attorney's fees, damages, or sanctions that the litigation financier can show resulted from293
the intentional misconduct of such plaintiffs or claimants or their legal representatives.294
7-10-6.295
(a) The terms and conditions of a litigation financing agreement shall be set forth in a fully296
completed, written litigation financing contract with no material terms or conditions297
omitted, and such contract shall contain all material terms and conditions at the time it is298
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signed by any party, including, but not limited to the right to cancel such litigation299
financing agreement without penalty or further obligation within five business days from300
the date the litigation financing contract is executed by or on behalf of the consumer or the301
date litigation financing is received from the litigation financier, whichever date is later.302
(b) Upon execution of a litigation financing contract, a litigation financier shall not amend303
the terms or conditions of the litigation financing agreement that is memorialized by such304
contract without full disclosure to and prior written consent of all parties to such litigation305
financing agreement.306
(c) Each litigation financing contract with a consumer shall set forth the name, principal307
business address, and preferred mailing address of the litigation financier on the first page308
of such contract, and the following disclosures shall be typed in at least 14 point bold font309
and placed clearly and conspicuously immediately above the consumer's signature line in310
the litigation financing contract:311
'IMPORTANT DISCLOSURES -- PLEASE READ CAREFULLY312
1. Right to Cancellation: You, the consumer, or your legal representative may cancel313
this litigation financing agreement without penalty or further obligation within314
five (5) business days from the date you sign this contract or the date you receive315
financing from the litigation financier, whichever date is later. You or your legal316
representative may cancel this litigation financing agreement by sending a notice of317
cancellation to the litigation financier and returning to the litigation financier any318
funds received from the litigation financier at the litigation financier's preferred319
mailing address set forth on page 1 of this contract.320
2. The maximum amount the litigation financier may receive or recover from any321
contingent payment provided for in this litigation financing agreement shall be no322
more than an amount equal to the share of the proceeds collectively recovered by the323
plaintiffs or claimants in a civil action, administrative proceeding, legal claim, or324
other legal proceeding seeking to recover monetary damages financed by this325
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litigation financing agreement after the payment of any attorney's fees and costs owed326
in connection to such action, claim, or proceedings.327
3. The litigation financier agrees that it has no right to, and will not demand, request,328
receive, or exercise any right to, influence, affect, or otherwise make any decision in329
the handling, conduct, administration, litigation, settlement, or resolution of your civil330
action, administrative proceeding, legal claim, other legal proceeding. All of these331
rights remain solely with you and your legal representative.332
4. You, the consumer, are not required by the terms of this litigation financing333
agreement to continue to be represented by any particular legal representative, and the334
litigation financing agreement does not include any right for the litigation financier,335
any legal representative, or any other person to claim or seek to recover any336
assessment, charge, fee, penalty, or damages of any kind if you elect to change legal337
representatives at any time.338
5. If there is no recovery of any money from your civil action, administrative339
proceeding, legal claim, or other legal proceeding, or if there is not enough money to340
satisfy in full the portion assigned to the litigation financier, you will not owe341
anything in excess of your recovery.342
6. You are entitled to a fully completed litigation financing contract with no material343
terms or conditions omitted prior to signing. Before signing the litigation financing344
contract, or authorizing anyone to sign it on your behalf, you should read the contract345
completely and consult an attorney.'346
(d) Only the consumer shall be authorized to execute a litigation financing contract on his347
or her own behalf, except in such cases where the consumer lacks the legal capacity to348
execute a contract. The consumer's legal representative in the civil action, administrative349
proceeding, legal claim, or other legal proceeding seeking to recover monetary damages350
financed by the corresponding litigation financing agreement shall not execute a litigation351
financing contract on behalf of the consumer. A litigation financing contract executed by352
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such legal representative on behalf of such consumer shall be void and unenforceable as353
a matter of law.354
(e) If the consumer is represented by a legal representative in the civil action,355
administrative proceeding, legal claim, or other legal proceeding that is the subject of the356
litigation financing agreement, the legal representative shall acknowledge in the litigation357
financing contract that the legal representative and the legal representative's employer and358
employees have not received or paid a commission, referral fee, rebate, or any other359
consideration from or to the litigation financier and have no obligation to do so in the360
future.361
(f) If the consumer's legal representative is a party to a litigation financing agreement362
related to the consumer's civil action, administrative proceeding, legal claim, or other legal363
proceeding that is the subject of the consumer's litigation financing agreement, the legal364
representative shall disclose and deliver a copy of his or her litigation financing contract365
to the consumer. Following such disclosure and delivery, the consumer shall sign an366
acknowledgment that the consumer has read and understands the terms and conditions of367
his or her legal representative's litigation financing contract. Such consumer shall be368
provided with a copy of such signed acknowledgment.369
7-10-7.370
The provisions of this chapter shall not apply to:371
(1) A nonprofit entity that provides litigation financing, directly or indirectly, for the372
benefit of such nonprofit entity or one or more of its members without receiving, in373
consideration for the litigation financing:374
(A) The payment of interest, fees, or other consideration; or375
(B) Except for in-house counsel of such nonprofit entity, any right to recovery or376
payment from the amount of any judgment, award, settlement, verdict, or other form377
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of monetary relief obtained in the civil action, administrative proceeding, legal claim,378
or other legal proceeding;379
(2) Any litigation financing provided by an entity engaged in commerce or business380
activity; provided, however, that this exemption shall apply only if such entity does not:381
(A) Charge, contract for, collect, or receive any interest, fees, or other consideration;382
(B) Retain or receive any financial interest in the outcome of the civil action,383
administrative proceeding, legal claim, or other legal proceeding; or384
(C) Retain or receive any right to recovery or payment from the amount of any385
judgment, award, settlement, verdict, or other form of monetary relief obtained in the386
civil action, administrative proceeding, legal claim, or other legal proceeding; or387
(3) A lender that does not receive, in consideration for loaning money to any person, a388
right to receive payment from the value of any proceeds or other consideration realized389
from any judgment award, settlement, verdict, or other form of monetary relief any390
person may receive or recover in relation to any civil action, administrative proceeding,391
legal claim, or other legal proceeding.392
7-10-8.393
Any violation of this chapter by a litigation financier renders the litigation financing394
agreement void and unenforceable by such litigation financier or any successor-in-interest395
to the litigation financing agreement.396
7-10-9.397
(a) It is unlawful for a litigation financier to enter into or offer to enter into a litigation398
financing agreement unless such litigation financier is registered under this chapter.399
(b) A person that willfully violates this chapter shall be guilty of a felony and upon400
conviction thereof, shall be imprisoned not less than one nor more than five years, or fined401
not more than $10,000.00, or both; provided, however, that on the recommendation of the402
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jury trying the case, when such recommendation is approved by the judge presiding on the403
trial, such crime shall be punished as a misdemeanor. If the judge trying the case deems404
it proper, such judge may, in fixing the punishment, reduce such felony to a misdemeanor.405
(c) The commissioner may refer to the Attorney General or the proper prosecuting attorney406
the name of any person acting as a litigation financier that is not registered or any applicant407
or registrant that is or may not be in compliance with this chapter; provided, however, that408
the Attorney General or the proper prosecuting attorney may institute criminal proceedings409
under this chapter with or without such referral.410
(d) This chapter does not limit the power of this state to punish a person for conduct that411
constitutes a crime under other laws of this state.412
7-10-10.413
(a) The department is authorized to:414
(1) Participate in the nation-wide multistate licensing system and registry in order to415
facilitate the sharing of information and standardization of the registration processes for416
litigation financiers by electronic or other means;417
(2) Enter into operating agreements, information sharing agreements, interstate418
cooperative agreements, and other contracts necessary for the department's participation419
in the nation-wide multistate licensing system and registry;420
(3) Request that the nation-wide multistate licensing system and registry adopt an421
appropriate privacy, data security, and security breach notification policy that is in full422
compliance with existing state and federal law;423
(4) Disclose or cause to be disclosed without liability via the nation-wide multistate424
licensing system and registry registration information, including, but not limited to,425
violations of this chapter and enforcement actions;426
(5) Establish and adopt, by rule or regulation, requirements for participation by427
registrants in the nation-wide multistate licensing system and registry upon the428
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department's determination that each new or amended requirement is consistent with both429
the public interest and the purposes of this chapter; and430
(6) Pay all fees received from applicants and registrants related to registrations to the431
Office of the State Treasurer; provided, however, that the department may net such fees432
to recover the cost of participation in the nation-wide multistate licensing system and433
registry.434
(b) Irrespective of its participation in the nation-wide multistate licensing system and435
registry, the department retains full and exclusive authority over determinations whether436
to grant registrations to litigation financiers under this chapter. Nothing in this Code437
section shall be construed to reduce this authority.438
(c) Applicants and registrants shall be required to pay any charges associated with their439
utilization of the nation-wide multistate licensing system and registry.440
7-10-11.441
The commissioner is authorized to adopt rules and other policies in overseeing the practice442
of litigation financing consistent with this chapter."443
SECTION 3.444
Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia Annotated, relating to445
depositions and discovery under the "Georgia Civil Practice Act," is amended in Code446
Section 9-11-26, relating to general provisions governing discovery, by adding a new447
paragraph to subsection (b) to read as follows:448
"(2.1)(A) Litigation financing agreement. A party may obtain discovery of the449
existence and terms and conditions of any litigation financing agreement, as such term450
is defined in Code Section 7-10-1, the subject of which is or includes the pending451
action; provided, however, that this subparagraph shall not apply to nonparties unless452
the litigation financing agreement is for $25,000.00 or more in funding.453
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(B) Information concerning the litigation financing agreement is not by reason of454
disclosure admissible in evidence at trial; provided, however, that nothing in this455
subparagraph shall be construed to limit the admissibility of such information as456
evidence of a party's claim or defense;"457
SECTION 4.458
(a) Except as provided in subsection (b) of this section, this Act shall become effective on459
January 1, 2026.460
(b) Section 3 of this Act shall become effective upon its approval by the Governor or upon461
its becoming law without such approval and shall apply to:462
(1) Any civil action, administrative proceedings, legal claims, or other legal proceedings463
commenced on or after the effective date of this Act; and464
(2) Any contracts entered into on or after the effective date of this Act.465
SECTION 5.466
All laws and parts of laws in conflict with this Act are repealed.467
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