GA
Georgia Senate Bill SB69

Georgia 2025-2026 Regular Session

Georgia Senate Bill SB69 Compare Versions

OldNewDifferences
1-25 SB 69/AP
2-Senate Bill 69
3-By: Senators Kennedy of the 18th, Gooch of the 51st, Robertson of the 29th, Anavitarte of
4-the 31st, Hatchett of the 50th and others
5-AS PASSED
1+LC 49 2394S
2+The House Committee on Rules offers the following substitute to SB 69:
63 A BILL TO BE ENTITLED
74 AN ACT
8-To amend Title 7 and Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia
9-1
5+To amend Title 7 and Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia1
106 Annotated, relating to banking and finance, and depositions and discovery under the2
117 "Georgia Civil Practice Act," respectively, so as to regulate third-party litigation financing3
128 practices in this state; to enact a new chapter regulating litigation financing practices; to4
139 provide for definitions; to require and provide for the registration of litigation financiers; to5
1410 prohibit any person with relevant affiliations with foreign persons, foreign principals, or6
1511 sovereign wealth funds from serving as litigation financiers; to require amended registration7
1612 as a litigation financier; to provide for forms and filing fees; to provide for public disclosure8
1713 of documents and information; to provide for denial of registration or amended registration9
1814 as a litigation financier; to provide for notice of such denials; to provide for appeal of such10
1915 denials; to provide for prohibitions applicable to litigation financiers and exceptions; to11
2016 provide for joint and several liability for certain litigation financiers; to require litigation12
2117 financing contracts to include indemnification provisions; to require litigation financing13
2218 agreements to be memorialized in writing by litigation financing contracts; to provide for14
2319 required provisions and disclosures to be included in litigation financing contracts; to require15
2420 and provide for certain disclosures and acknowledgments in litigation financing agreements;16
25-S. B. 69
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27-to provide for exemptions; to provide for the cancellation of litigation financing agreements;
28-17
21+- 1 - LC 49 2394S
22+to provide for exemptions; to provide for the cancellation of litigation financing agreements;17
2923 to provide for a criminal offense; to provide for the authority of the Attorney General and18
3024 prosecuting attorneys to institute criminal proceedings; to provide for penalties; to authorize19
3125 and provide for the department's participation in the nation-wide multistate licensing system20
3226 and registry and for matters related thereto; to provide for the authority of the department and21
3327 the commissioner of banking and finance; to provide for the discovery of litigation financing22
34-agreements in civil actions; to provide a short title; to amend Title 40 of the Official Code23
35-of Georgia Annotated, relating to motor vehicles, so as to provide for admissibility of24
36-evidence related to seat safety belts; to provide for related matters; to provide for effective25
37-dates and applicabilities; to repeal conflicting laws; and for other purposes.26
38-BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:27
39-SECTION 1.28
40-This Act shall be known and may be cited as the "Georgia Courts Access and Consumer29
41-Protection Act."30
42-SECTION 2.31
43-Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is32
44-amended by adding a new chapter to read as follows:33
45-"CHAPTER 10
46-34
47-7-10-1.35
48-As used in this chapter, the term:36
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51-(1) 'Affiliate' or 'affiliated' means a person that directly, or indirectly through one or more37
52-intermediaries, controls, is controlled by, or is under common control with another38
53-person.39
54-(2) 'Commissioner' means the commissioner of banking and finance.40
55-(3) 'Consumer' means any individual who resides, is present, or is domiciled in this state41
56-or who is or has standing to become a plaintiff, claimant, or complainant in a civil action,42
57-administrative proceeding, legal claim, or other legal proceeding or in pursuit of any43
58-claim or cause of action in this state.44
59-(4) 'Department' means the Department of Banking and Finance.45
60-(5) 'Entity' means any domestic or foreign corporation, partnership, limited partnership,46
61-limited liability company, trust, fund, plan, or any other business, enterprise, association,47
62-or organization of any kind or nature.48
63-(6) 'Foreign person' means an individual or an entity that is not:49
64-(A) A citizen of the United States;50
65-(B) An alien lawfully admitted for permanent residence in the United States;51
66-(C) An unincorporated association with a majority of members who are citizens of the52
67-United States or aliens lawfully admitted for permanent residence in the United States;53
68-or54
69-(D) A corporation that is incorporated in the United States.55
70-(7) 'Foreign principal' means:56
71-(A) The government or a government official of any country other than the United57
72-States;58
73-(B) A political subdivision or political party of a country other than the United States;59
74-or60
75-(C) A partnership, association, corporation, organization, or other combination of61
76-persons organized under the laws of or having its principal place of business in a62
77-country other than the United States whose shares or other ownership interest is owned63
78-S. B. 69
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80-by the government or a government official of a country other than the United States64
81-or is owned by a political subdivision or political party of a country other than the65
82-United States.66
83-(8) 'Legal representative' means any attorney, group of attorneys, or law firm duly67
84-licensed and authorized to practice law and to represent a consumer in a civil action,68
85-administrative proceeding, legal claim, or other legal proceeding seeking to recover69
86-damages in this state.70
87-(9) 'Litigation financier' means any person engaged in or formed, created, or established71
88-for the purpose of engaging in any kind of business or economic activity that involves72
89-providing litigation financing in exchange for consideration of any kind.73
90-(10)(A) 'Litigation financing agreement' or 'litigation financing' means an agreement74
91-in which a litigation financier agrees to provide financing to a consumer or entity that75
92-is or has standing to become a party to a civil action, administrative proceeding, legal76
93-claim, or other legal proceeding seeking to recover monetary damages, or to counsel77
94-for such consumer or entity, in exchange for a right to receive payment, which right is78
95-contingent in any respect on the outcome of such action, claim, or proceedings by79
96-settlement, judgment, or otherwise, or on the outcome of any matter within a portfolio80
97-that includes such action, claim, or proceedings and involves the same legal81
98-representative or affiliated representative.82
99-(B) Such term shall not include:83
100-(i) An agreement wherein a legal representative consents to provide legal services on84
101-a contingency fee basis or to advance his or her client's legal costs, and where such85
102-services or costs are provided by the legal representative in accordance with the86
103-Georgia Rules of Professional Conduct maintained and enforced by the State Bar of87
104-Georgia;88
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107-(ii) A preexisting contractual obligation to indemnify or defend a party to a civil89
108-action, administrative proceeding, legal claim, or other legal proceeding seeking to90
109-recover monetary damages, or any other legal proceeding;91
110-(iii) Any obligation of a health insurer to pay any sums for healthcare for an injured92
111-person under the terms of a health insurance plan or agreement;93
112-(iv) Any obligation to repay a financial institution, as such term is defined in Code94
113-Section 10-5A-1, for loans made directly to a party to a civil action, administrative95
114-proceeding, legal claim, or other legal proceeding seeking to recover monetary96
115-damages, or such party's legal representative, provided that such repayment of such97
116-loan is not contingent upon the outcome of such action, claim, or proceedings, or on98
117-the outcome of any matter within a portfolio that includes such action, claim, or99
118-proceedings, and involves the same legal representative or affiliated legal100
119-representative;101
120-(v) Funding provided to a nonprofit organization that is funded by private donations,102
121-represents one or more clients on a pro-bono, no-cost basis, and seeks only injunctive103
122-relief on behalf of its clients; provided, however, that the provisions of this division104
123-shall not be construed to prohibit or otherwise affect any award of costs or attorney's105
124-fees to such nonprofit organization seeking only injunctive relief on behalf of a client106
125-that such nonprofit organization represents on a pro-bono, no-cost basis, or to such107
126-client; or108
127-(vi) Banks, institutional investors, and persons that provide financing to a litigation109
128-financier but do not engage in the business of litigation financing; provided, however,110
129-that this exclusion shall not apply to banks, institutional investors, and persons111
130-affiliated with a litigation financier.112
131-(11) 'Litigation financing contract' or 'contract' means a written contract memorializing113
132-the terms and conditions of a litigation financing agreement.114
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135-(12) 'Sovereign wealth fund' means an investment fund owned or controlled by a foreign115
136-principal or an agent of such foreign principal.116
137-7-10-2.117
138-(a) It is unlawful for a person to engage in litigation financing in this state unless such118
139-person is registered as a litigation financier as provided under this Code section.119
140-(b) Each person registering as a litigation financier shall be authorized to do business in120
141-this state.121
142-(c) To register as a litigation financier, a person shall file with the department a registration122
143-statement setting forth the following:123
144-(1) The legal name of such person;124
145-(2) The principal business address and preferred mailing address of such person;125
146-(3) The telephone number and email address through which such person may be126
147-contacted;127
148-(4) The name, principal business address, and preferred mailing address of such person's128
149-registered agent that is authorized to accept service of process on behalf of such person;129
150-(5) The name, principal business address, and citizenship or country of incorporation or130
151-registration of any foreign person, foreign principal, or sovereign wealth fund affiliated131
152-with the person seeking to register as a litigation financier under this Code section in any132
153-capacity directly or indirectly related to such person's litigation financing business; and133
154-(6) Any other information deemed necessary by the department.134
155-(d) If the person seeking to register as a litigation financier is an entity, such entity shall135
156-file with the department a registration statement that provides, with respect to each person136
157-that directly or indirectly owns, controls, holds with the power to vote, or holds proxies137
158-representing 10 percent or more of the voting shares of the litigation financier, the138
159-following:139
160-(1) The legal name of each such person;140
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163-(2) The principal business address and preferred mailing address of each such person;141
164-(3) If the person is an individual:142
165-(A) Such individual's occupation;143
166-(B) Any offices and positions held with the person seeking to register as a litigation144
167-financier during the past five years;145
168-(C) Any conviction of a crime other than misdemeanor traffic violations during the146
169-past ten years; and147
170-(D) The name, principal business address, and citizenship or country of incorporation148
171-or registration of any foreign person, foreign principal, or sovereign wealth fund149
172-affiliated with such individual in any capacity directly or indirectly related to such150
173-individual's litigation financing business;151
174-(4) If the person is an entity:152
175-(A) The nature of the entity's business operations during the past five years or a153
176-description of the business intended to be undertaken by the entity and such entity's154
177-subsidiaries, if any;155
178-(B) A list of all individuals who are or who have been selected to become directors or156
179-officers of the entity and each subsidiary of the entity, if any. Such list shall include for157
180-each individual the information required by paragraph (3) of this subsection; and158
181-(C) The name, principal business address, and citizenship or country of incorporation159
182-or registration of any foreign person, foreign principal, or sovereign wealth fund160
183-affiliated with the entity in any capacity directly or indirectly related to such entity's161
184-litigation financing business; and162
185-(5) Any other information deemed necessary by the department.163
186-(e) No person shall be registered as a litigation financier or shall engage in litigation164
187-financing in this state that is, in any capacity directly or indirectly related to such person's165
188-litigation financing business, affiliated with any foreign government or foreign166
189-nongovernment person or entity designated by the United States Secretary of Commerce167
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192-as a foreign adversary pursuant to 15 C.F.R. Section 7.4, or any foreign person, foreign168
193-principal, or sovereign wealth fund thereof.169
194-(f) A person subject to registration under this Code section shall file, within 30 days of any170
195-change to the most recently filed registration or within 30 days of when such registration171
196-becomes inaccurate or incomplete in any respect, an amended registration with the172
197-department.173
198-(g) The commissioner is authorized to prescribe the forms and the filing fees that he or she174
199-deems necessary for the purposes of this chapter.175
200-(h) All documents and information filed with the department pursuant to this Code section176
201-are public records subject to disclosure pursuant to Article 4 of Chapter 18 of Title 50.177
202-7-10-3.178
203-(a) The department may deny a registration to act as a litigation financier or deny a179
204-registered litigation financier's amended registration pursuant to subsection (f) of Code180
205-Section 7-10-2 if the department finds that:181
206-(1) The requirements of this chapter have not been met; or182
207-(2) The applicant or registrant; any person who is a director, officer, partner, or owner183
208-of the applicant or registrant; or any individual who directs the affairs of or controls or184
209-establishes policy for the applicant or registrant has, within the last ten years, been185
210-convicted of a felony in any jurisdiction or of a crime which, if committed within this186
211-state, would constitute a felony under the laws of this state. For the purposes of this187
212-paragraph, a person shall be deemed to have been convicted of a crime if such person188
213-shall have pleaded guilty or nolo contendere to a charge thereof before a court or federal189
214-magistrate or shall have been found guilty of such crime by the decision or judgment of190
215-a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement191
216-of sentence or the suspension thereof and regardless of whether first offender treatment192
217-without adjudication of guilt pursuant to the charge was entered or an adjudication or193
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220-sentence was otherwise withheld or not entered on such charge, unless and until such plea194
221-of guilty or such decision, judgment, or verdict shall have been set aside, reversed, or195
222-otherwise abrogated by lawful judicial process or until probation, sentence, or both, of196
223-a first offender without adjudication of guilt have been successfully completed and197
224-documented or unless the person convicted of the crime shall have received a pardon for198
225-such crime from the President of the United States or the governor or other pardoning199
226-authority in the jurisdiction where the conviction occurred.200
227-(b) Notice of the department's intention to enter an order denying a registration or an201
228-amended registration shall be provided to the applicant or registrant in writing, sent by202
229-registered or certified mail or statutory overnight delivery addressed to the principal place203
230-of business of such applicant or registrant. If a person refuses to accept service of the204
231-notice by registered or certified mail or statutory overnight delivery, the notice or order205
232-shall be served by the commissioner or the commissioner's authorized representative under206
233-any other method of lawful service, and the person shall be personally liable to the207
234-commissioner for a sum equal to the actual costs incurred to serve the notice or order. 208
235-Such liability shall be paid upon notice and demand by the commissioner or the209
236-commissioner's authorized representative and shall be assessed and collected in the same210
237-manner as other fees or fines administered by the commissioner.211
238-(c) Within 20 days of the date of the notice of intention to enter an order denying a212
239-registration or an amended registration, the applicant or registrant may request in writing213
240-a hearing to contest the order. If a hearing is not requested in writing within 20 days of the214
241-date of such notice of intention, the department shall enter a final order regarding the215
242-denial. Any final order of the department denying a registration or an amended registration216
243-shall state the grounds upon which it is based and shall be effective on the date of issuance. 217
244-A copy of such order shall be forwarded promptly by mail addressed to the principal place218
245-of business of such applicant or registrant.219
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248-(d) A decision by the department denying a registration or an amended registration shall220
249-be subject to review in accordance with Chapter 13 of Title 50, the 'Georgia Administrative221
250-Procedure Act.'222
251-7-10-4.223
252-(a) A litigation financier shall not:224
253-(1) Direct, or make any decisions with respect to, the course of any civil action,225
254-administrative proceeding, legal claim, or other legal proceeding for which such litigation226
255-financier has provided litigation financing, or any settlement or other disposition thereof. 227
256-Such prohibition includes, but is not limited to, decisions in appointing or changing legal228
257-representatives, choice or use of expert witnesses, and litigation strategy. All rights to229
258-make decisions with respect to the course and settlement or other disposition of the230
259-subject civil action, administrative proceeding, legal claim, or other legal proceeding shall231
260-remain solely with the parties to such action, claim, or proceedings and their legal232
261-representatives. The provisions of this paragraph shall be strictly construed in favor of233
262-the individual or entity receiving litigation financing and against the litigation financier;234
263-(2) Pay or offer commissions, referral fees, rebates, or other forms of consideration to235
264-any person, including, but not limited to, an attorney or any employee of an attorney or236
265-a law firm, in exchange for referring a consumer or such consumer's legal representative237
266-to a litigation financier; provided, however, that this paragraph shall not apply to an238
267-employee, agent, or affiliate of the litigation financier;239
268-(3) Accept any commissions, referral fees, rebates, or other forms of consideration from240
269-any person, including, but not limited to, an attorney or any employee of an attorney or241
270-a law firm, for providing any goods or rendering any services to the consumer; provided,242
271-however, that this paragraph shall not apply to an employee, agent, or affiliate of the243
272-litigation financier;244
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275-(4) Contract for, receive, or recover, whether directly or indirectly, any amount greater245
276-than an amount equal to the share of the proceeds collectively recovered by the plaintiffs246
277-or claimants in a civil action, administrative proceeding, legal claim, or other legal247
278-proceeding seeking to recover monetary damages financed by a litigation financing248
279-agreement after the payment of any attorney's fees and costs owed in connection to such249
280-action, claim, or proceedings;250
281-(5) Advertise false or misleading information regarding its products or services;251
282-(6) Refer or require any consumer to hire or engage any person providing any goods or252
283-rendering any services to the consumer;253
284-(7) Fail to promptly deliver a fully completed and signed litigation financing contract to254
285-the consumer and the consumer's legal representative;255
286-(8) Attempt to secure a remedy or obtain a waiver of any remedy, including, but not256
287-limited to, compensatory, statutory, or punitive damages, that the consumer may or may257
288-not be entitled to pursue or recover otherwise;258
289-(9) Offer or provide legal advice to the consumer;259
290-(10) Assign or securitize a litigation financing agreement in whole or in part; provided,260
291-however, that, if the litigation financier retains responsibility for collecting payment,261
292-administering, and otherwise enforcing the litigation funding contract, the prohibition262
293-provided in this paragraph shall not apply to an assignment:263
294-(A) To a wholly owned subsidiary of the litigation financier;264
295-(B) To an affiliate of the litigation financier that is under common control; or265
296-(C) Granting a security interest under Article 9 of the Uniform Commercial Code or266
297-as otherwise permitted by law; or267
298-(11) Report a consumer to a credit reporting agency if insufficient funds remain to repay268
299-the litigation financier in full from the proceeds received from any judgment, award,269
300-settlement, verdict, or other form of monetary relief obtained in a civil action,270
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303-administrative proceeding, legal claim, or other legal proceeding that is the subject of the271
304-litigation financing agreement.272
305-(b) No person that provides any goods or renders any services related to the litigation to273
306-the consumer shall have a financial interest in litigation financing provided by a litigation274
307-financier to such consumer, and no such person shall receive any commissions, referral275
308-fees, rebates, or other forms of consideration from any litigation financier or the litigation276
309-financier's agents, employees, owners, or affiliates.277
310-7-10-5.278
311-(a) A litigation financier that agrees to provide $25,000.00 or more in funding pursuant to279
312-a litigation financing agreement may be jointly and severally liable for any award or order280
313-imposing or assessing costs or monetary sanctions for frivolous litigation against a281
314-consumer, entity, or a legal representative of such consumer or entity arising from or282
315-relating to any civil action, administrative proceeding, legal claim, or other legal283
316-proceeding for which the litigation financier is providing litigation financing; provided,284
317-however, that where the litigation financier's right of repayment is a fixed amount set by285
318-contract, the liability of such litigation financier shall not exceed the right of repayment less286
319-the amount already extended.287
320-(b) In each litigation financing contract, the litigation financier shall agree to indemnify,288
321-and shall indemnify even without such agreement, the plaintiffs and claimants to the civil289
322-action, administrative proceeding, legal claim, or other legal proceeding that is the subject290
323-of such litigation financing agreement and such plaintiffs' and claimants' legal291
324-representatives against any adverse costs, attorney's fees, damages, or sanctions that may292
325-be ordered or awarded against such persons in such action, claim, or proceedings; provided,293
326-however, that such indemnification shall not be required or enforceable for adverse costs,294
327-attorney's fees, damages, or sanctions that the litigation financier can show resulted from295
328-the intentional misconduct of such plaintiffs or claimants or their legal representatives.296
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331-7-10-6.297
332-(a) The terms and conditions of a litigation financing agreement shall be set forth in a fully298
333-completed, written litigation financing contract with no material terms or conditions299
334-omitted, and such contract shall contain all material terms and conditions at the time it is300
335-signed by any party, including, but not limited to the right to cancel such litigation301
336-financing agreement without penalty or further obligation within five business days from302
337-the date the litigation financing contract is executed by or on behalf of the consumer or the303
338-date litigation financing is received from the litigation financier, whichever date is later.304
339-(b) Upon execution of a litigation financing contract, a litigation financier shall not amend305
340-the terms or conditions of the litigation financing agreement that is memorialized by such306
341-contract without full disclosure to and prior written consent of all parties to such litigation307
342-financing agreement.308
343-(c) Each litigation financing contract with a consumer shall set forth the name, principal309
344-business address, and preferred mailing address of the litigation financier on the first page310
345-of such contract, and the following disclosures shall be typed in at least 14 point bold font311
346-and placed clearly and conspicuously immediately above the consumer's signature line in312
347-the litigation financing contract:313
348-'IMPORTANT DISCLOSURES -- PLEASE READ CAREFULLY314
349-1. Right to Cancellation: You, the consumer, or your legal representative may cancel315
350-this litigation financing agreement without penalty or further obligation within316
351-five (5) business days from the date you sign this contract or the date you receive317
352-financing from the litigation financier, whichever date is later. You or your legal318
353-representative may cancel this litigation financing agreement by sending a notice of319
354-cancellation to the litigation financier and returning to the litigation financier any320
355-funds received from the litigation financier at the litigation financier's preferred321
356-mailing address set forth on page 1 of this contract.322
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359-2. The maximum amount the litigation financier may receive or recover from any323
360-contingent payment provided for in this litigation financing agreement shall be no324
361-more than an amount equal to the share of the proceeds collectively recovered by the325
362-plaintiffs or claimants in a civil action, administrative proceeding, legal claim, or326
363-other legal proceeding seeking to recover monetary damages financed by this327
364-litigation financing agreement after the payment of any attorney's fees and costs owed328
365-in connection to such action, claim, or proceedings.329
366-3. The litigation financier agrees that it has no right to, and will not demand, request,330
367-receive, or exercise any right to, influence, affect, or otherwise make any decision in331
368-the handling, conduct, administration, litigation, settlement, or resolution of your civil332
369-action, administrative proceeding, legal claim, other legal proceeding. All of these333
370-rights remain solely with you and your legal representative.334
371-4. You, the consumer, are not required by the terms of this litigation financing335
372-agreement to continue to be represented by any particular legal representative, and the336
373-litigation financing agreement does not include any right for the litigation financier,337
374-any legal representative, or any other person to claim or seek to recover any338
375-assessment, charge, fee, penalty, or damages of any kind if you elect to change legal339
376-representatives at any time.340
377-5. If there is no recovery of any money from your civil action, administrative341
378-proceeding, legal claim, or other legal proceeding, or if there is not enough money to342
379-satisfy in full the portion assigned to the litigation financier, you will not owe343
380-anything in excess of your recovery.344
381-6. You are entitled to a fully completed litigation financing contract with no material345
382-terms or conditions omitted prior to signing. Before signing the litigation financing346
383-contract, or authorizing anyone to sign it on your behalf, you should read the contract347
384-completely and consult an attorney.'348
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387-(d) Only the consumer shall be authorized to execute a litigation financing contract on his349
388-or her own behalf, except in such cases where the consumer lacks the legal capacity to350
389-execute a contract. The consumer's legal representative in the civil action, administrative351
390-proceeding, legal claim, or other legal proceeding seeking to recover monetary damages352
391-financed by the corresponding litigation financing agreement shall not execute a litigation353
392-financing contract on behalf of the consumer. A litigation financing contract executed by354
393-such legal representative on behalf of such consumer shall be void and unenforceable as355
394-a matter of law.356
395-(e) If the consumer is represented by a legal representative in the civil action,357
396-administrative proceeding, legal claim, or other legal proceeding that is the subject of the358
397-litigation financing agreement, the legal representative shall acknowledge in the litigation359
398-financing contract that the legal representative and the legal representative's employer and360
399-employees have not received or paid a commission, referral fee, rebate, or any other361
400-consideration from or to the litigation financier and have no obligation to do so in the362
401-future.363
402-(f) If the consumer's legal representative is a party to a litigation financing agreement364
403-related to the consumer's civil action, administrative proceeding, legal claim, or other legal365
404-proceeding that is the subject of the consumer's litigation financing agreement, the legal366
405-representative shall disclose and deliver a copy of his or her litigation financing contract367
406-to the consumer. Following such disclosure and delivery, the consumer shall sign an368
407-acknowledgment that the consumer has read and understands the terms and conditions of369
408-his or her legal representative's litigation financing contract. Such consumer shall be370
409-provided with a copy of such signed acknowledgment.371
410-7-10-7.372
411-The provisions of this chapter shall not apply to:373
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414-(1) A nonprofit entity that provides litigation financing, directly or indirectly, for the374
415-benefit of such nonprofit entity or one or more of its members without receiving, in375
416-consideration for the litigation financing:376
417-(A) The payment of interest, fees, or other consideration; or377
418-(B) Except for in-house counsel of such nonprofit entity, any right to recovery or378
419-payment from the amount of any judgment, award, settlement, verdict, or other form379
420-of monetary relief obtained in the civil action, administrative proceeding, legal claim,380
421-or other legal proceeding;381
422-(2) Any litigation financing provided by an entity engaged in commerce or business382
423-activity; provided, however, that this exemption shall apply only if such entity does not:383
424-(A) Charge, contract for, collect, or receive any interest, fees, or other consideration;384
425-(B) Retain or receive any financial interest in the outcome of the civil action,385
426-administrative proceeding, legal claim, or other legal proceeding; or386
427-(C) Retain or receive any right to recovery or payment from the amount of any387
428-judgment, award, settlement, verdict, or other form of monetary relief obtained in the388
429-civil action, administrative proceeding, legal claim, or other legal proceeding; or389
430-(3) A lender that does not receive, in consideration for loaning money to any person, a390
431-right to receive payment from the value of any proceeds or other consideration realized391
432-from any judgment award, settlement, verdict, or other form of monetary relief any392
433-person may receive or recover in relation to any civil action, administrative proceeding,393
434-legal claim, or other legal proceeding.394
435-7-10-8.395
436-Any violation of this chapter by a litigation financier renders the litigation financing396
437-agreement void and unenforceable by such litigation financier or any successor-in-interest397
438-to the litigation financing agreement.398
439-S. B. 69
440-- 16 - 25 SB 69/AP
441-7-10-9.399
442-(a) It is unlawful for a litigation financier to enter into or offer to enter into a litigation400
443-financing agreement unless such litigation financier is registered under this chapter.401
444-(b) A person that willfully violates this chapter shall be guilty of a felony and upon402
445-conviction thereof, shall be imprisoned not less than one nor more than five years, or fined403
446-not more than $10,000.00, or both; provided, however, that on the recommendation of the404
447-jury trying the case, when such recommendation is approved by the judge presiding on the405
448-trial, such crime shall be punished as a misdemeanor. If the judge trying the case deems406
449-it proper, such judge may, in fixing the punishment, reduce such felony to a misdemeanor.407
450-(c) The commissioner may refer to the Attorney General or the proper prosecuting attorney408
451-the name of any person acting as a litigation financier that is not registered or any applicant409
452-or registrant that is or may not be in compliance with this chapter; provided, however, that410
453-the Attorney General or the proper prosecuting attorney may institute criminal proceedings411
454-under this chapter with or without such referral.412
455-(d) This chapter does not limit the power of this state to punish a person for conduct that413
456-constitutes a crime under other laws of this state.414
457-7-10-10.415
458-(a) The department is authorized to:416
459-(1) Participate in the nation-wide multistate licensing system and registry in order to417
460-facilitate the sharing of information and standardization of the registration processes for418
461-litigation financiers by electronic or other means;419
462-(2) Enter into operating agreements, information sharing agreements, interstate420
463-cooperative agreements, and other contracts necessary for the department's participation421
464-in the nation-wide multistate licensing system and registry;422
465-S. B. 69
466-- 17 - 25 SB 69/AP
467-(3) Request that the nation-wide multistate licensing system and registry adopt an423
468-appropriate privacy, data security, and security breach notification policy that is in full424
469-compliance with existing state and federal law;425
470-(4) Disclose or cause to be disclosed without liability via the nation-wide multistate426
471-licensing system and registry registration information, including, but not limited to,427
472-violations of this chapter and enforcement actions;428
473-(5) Establish and adopt, by rule or regulation, requirements for participation by429
474-registrants in the nation-wide multistate licensing system and registry upon the430
475-department's determination that each new or amended requirement is consistent with both431
476-the public interest and the purposes of this chapter; and432
477-(6) Pay all fees received from applicants and registrants related to registrations to the433
478-Office of the State Treasurer; provided, however, that the department may net such fees434
479-to recover the cost of participation in the nation-wide multistate licensing system and435
480-registry.436
481-(b) Irrespective of its participation in the nation-wide multistate licensing system and437
482-registry, the department retains full and exclusive authority over determinations whether438
483-to grant registrations to litigation financiers under this chapter. Nothing in this Code439
484-section shall be construed to reduce this authority.440
485-(c) Applicants and registrants shall be required to pay any charges associated with their441
486-utilization of the nation-wide multistate licensing system and registry.442
487-7-10-11.443
488-The commissioner is authorized to adopt rules and other policies in overseeing the practice444
489-of litigation financing consistent with this chapter."445
490-SECTION 3.446
491-S. B. 69
492-- 18 - 25 SB 69/AP
493-Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia Annotated, relating to
494-447
495-depositions and discovery under the "Georgia Civil Practice Act," is amended in Code448
496-Section 9-11-26, relating to general provisions governing discovery, by adding a new449
497-paragraph to subsection (b) to read as follows:450
498-"(2.1)(A) Litigation financing agreement. A party may obtain discovery of the
499-451
500-existence and terms and conditions of any litigation financing agreement, as such term452
501-is defined in Code Section 7-10-1, the subject of which is or includes the pending453
502-action; provided, however, that this subparagraph shall not apply to nonparties unless454
503-the litigation financing agreement is for $25,000.00 or more in funding.455
504-(B) Information concerning the litigation financing agreement is not by reason of456
505-disclosure admissible in evidence at trial; provided, however, that nothing in this457
506-subparagraph shall be construed to limit the admissibility of such information as458
507-evidence of a party's claim or defense;"459
508-SECTION 4.460
509-Title 40 of the Official Code of Georgia Annotated, relating to motor vehicles, is amended461
510-in Code Section 40-8-76.1, relating to use of safety belts in passenger vehicles, by revising462
511-subsection (d) as follows:463
512-"(d)(1) The failure of an occupant of a motor vehicle to wear a seat safety belt in any seat464
513-of a motor vehicle which has a seat safety belt or belts shall not be considered evidence465
514-of negligence or causation, shall not otherwise be considered by the finder of fact on any466
515-question of liability of any person, corporation, or insurer, shall not be any basis for467
516-cancellation of coverage or increase in insurance rates, and shall not may be considered468
517-in any civil action as evidence admissible on the issues of negligence, comparative469
518-negligence, causation, assumption of risk, or apportionment of fault or for any other470
519-purpose and may be evidence used to diminish any recovery for damages arising out of471
520-the ownership, maintenance, occupancy, or operation of a motor vehicle; provided,472
521-S. B. 69
522-- 19 - 25 SB 69/AP
523-however, that this paragraph shall not prevent a court from determining the admissibility473
524-of such evidence pursuant to Code Section 24-4-403 or any other statutory or common474
525-law rule of evidence.475
526-(2) The failure of an occupant of a motor vehicle to wear a seat safety belt in any seat of476
527-a motor vehicle which has a seat safety belt or belts shall not be any basis for a477
528-cancellation of insurance coverage or an increase in insurance rate."478
529-SECTION 5.479
530-(a) Except as provided in subsections (b) and (c) of this section, this Act shall become480
531-effective on January 1, 2026.481
532-(b) Section 3 of this Act shall become effective upon its approval by the Governor or upon482
533-its becoming law without such approval and shall apply to:483
534-(1) Any civil action, administrative proceedings, legal claims, or other legal proceedings484
535-commenced on or after the effective date of this Act; and485
536-(2) Any contracts entered into on or after the effective date of this Act.486
537-(c)(1) Section 4 of this Act shall become effective upon its approval by the Governor or487
538-upon its becoming law without such approval.488
539-(2) Section 4 of this Act shall not apply to causes of action pending on the effective date489
540-of this Act. Section 4 of this Act shall apply only to causes of action commenced on or490
541-after the effective date of this Act, and any causes of action commenced prior to the491
542-effective date of this Act shall be governed by prior law.492
543-SECTION 6.493
544-All laws and parts of laws in conflict with this Act are repealed.494
545-S. B. 69
546-- 20 -
28+agreements in civil actions; to provide a short title; to provide for related matters; to provide23
29+for effective dates and applicabilities; to repeal conflicting laws; and for other purposes.24
30+BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:25
31+SECTION 1.26
32+This Act shall be known and may be cited as the "Georgia Courts Access and Consumer27
33+Protection Act."28
34+SECTION 2.29
35+Title 7 of the Official Code of Georgia Annotated, relating to banking and finance, is30
36+amended by adding a new chapter to read as follows:31
37+"CHAPTER 1032
38+7-10-1.33
39+As used in this chapter, the term:34
40+(1) 'Affiliate' or 'affiliated' means a person that directly, or indirectly through one or more35
41+intermediaries, controls, is controlled by, or is under common control with another36
42+person.37
43+(2) 'Commissioner' means the commissioner of banking and finance.38
44+- 2 - LC 49 2394S
45+(3) 'Consumer' means any individual who resides, is present, or is domiciled in this state39
46+or who is or has standing to become a plaintiff, claimant, or complainant in a civil action,40
47+administrative proceeding, legal claim, or other legal proceeding or in pursuit of any41
48+claim or cause of action in this state.42
49+(4) 'Department' means the Department of Banking and Finance.43
50+(5) 'Entity' means any domestic or foreign corporation, partnership, limited partnership,44
51+limited liability company, trust, fund, plan, or any other business, enterprise, association,45
52+or organization of any kind or nature.46
53+(6) 'Foreign person' means an individual or an entity that is not:47
54+(A) A citizen of the United States;48
55+(B) An alien lawfully admitted for permanent residence in the United States;49
56+(C) An unincorporated association with a majority of members who are citizens of the50
57+United States or aliens lawfully admitted for permanent residence in the United States;51
58+or52
59+(D) A corporation that is incorporated in the United States.53
60+(7) 'Foreign principal' means:54
61+(A) The government or a government official of any country other than the United55
62+States;56
63+(B) A political subdivision or political party of a country other than the United States;57
64+or58
65+(C) A partnership, association, corporation, organization, or other combination of59
66+persons organized under the laws of or having its principal place of business in a60
67+country other than the United States whose shares or other ownership interest is owned61
68+by the government or a government official of a country other than the United States62
69+or is owned by a political subdivision or political party of a country other than the63
70+United States.64
71+- 3 - LC 49 2394S
72+(8) 'Legal representative' means any attorney, group of attorneys, or law firm duly65
73+licensed and authorized to practice law and to represent a consumer in a civil action,66
74+administrative proceeding, legal claim, or other legal proceeding seeking to recover67
75+damages in this state.68
76+(9) 'Litigation financier' means any person engaged in or formed, created, or established69
77+for the purpose of engaging in any kind of business or economic activity that involves70
78+providing litigation financing in exchange for consideration of any kind.71
79+(10)(A) 'Litigation financing agreement' or 'litigation financing' means an agreement72
80+in which a litigation financier agrees to provide financing to a consumer or entity that73
81+is or has standing to become a party to a civil action, administrative proceeding, legal74
82+claim, or other legal proceeding seeking to recover monetary damages, or to counsel75
83+for such consumer or entity, in exchange for a right to receive payment, which right is76
84+contingent in any respect on the outcome of such action, claim, or proceedings by77
85+settlement, judgment, or otherwise, or on the outcome of any matter within a portfolio78
86+that includes such action, claim, or proceedings and involves the same legal79
87+representative or affiliated representative.80
88+(B) Such term shall not include:81
89+(i) An agreement wherein a legal representative consents to provide legal services on82
90+a contingency fee basis or to advance his or her client's legal costs, and where such83
91+services or costs are provided by the legal representative in accordance with the84
92+Georgia Rules of Professional Conduct maintained and enforced by the State Bar of85
93+Georgia;86
94+(ii) A preexisting contractual obligation to indemnify or defend a party to a civil87
95+action, administrative proceeding, legal claim, or other legal proceeding seeking to88
96+recover monetary damages, or any other legal proceeding;89
97+(iii) Any obligation of a health insurer to pay any sums for healthcare for an injured90
98+person under the terms of a health insurance plan or agreement;91
99+- 4 - LC 49 2394S
100+(iv) Any obligation to repay a financial institution, as such term is defined in Code92
101+Section 10-5A-1, for loans made directly to a party to a civil action, administrative93
102+proceeding, legal claim, or other legal proceeding seeking to recover monetary94
103+damages, or such party's legal representative, provided that such repayment of such95
104+loan is not contingent upon the outcome of such action, claim, or proceedings, or on96
105+the outcome of any matter within a portfolio that includes such action, claim, or97
106+proceedings, and involves the same legal representative or affiliated legal98
107+representative;99
108+(v) Funding provided to a nonprofit organization that is funded by private donations,100
109+represents one or more clients on a pro-bono, no-cost basis, and seeks only injunctive101
110+relief on behalf of its clients; provided, however, that the provisions of this division102
111+shall not be construed to prohibit or otherwise affect any award of costs or attorney's103
112+fees to such nonprofit organization seeking only injunctive relief on behalf of a client104
113+that such nonprofit organization represents on a pro-bono, no-cost basis, or to such105
114+client; or106
115+(vi) Banks, institutional investors, and persons that provide financing to a litigation107
116+financier but do not engage in the business of litigation financing; provided, however,108
117+that this exclusion shall not apply to banks, institutional investors, and persons109
118+affiliated with a litigation financier.110
119+(11) 'Litigation financing contract' or 'contract' means a written contract memorializing111
120+the terms and conditions of a litigation financing agreement.112
121+(12) 'Sovereign wealth fund' means an investment fund owned or controlled by a foreign113
122+principal or an agent of such foreign principal.114
123+7-10-2.115
124+(a) It is unlawful for a person to engage in litigation financing in this state unless such116
125+person is registered as a litigation financier as provided under this Code section.117
126+- 5 - LC 49 2394S
127+(b) Each person registering as a litigation financier shall be authorized to do business in118
128+this state.119
129+(c) To register as a litigation financier, a person shall file with the department a registration120
130+statement setting forth the following:121
131+(1) The legal name of such person;122
132+(2) The principal business address and preferred mailing address of such person;123
133+(3) The telephone number and email address through which such person may be124
134+contacted;125
135+(4) The name, principal business address, and preferred mailing address of such person's126
136+registered agent that is authorized to accept service of process on behalf of such person;127
137+(5) The name, principal business address, and citizenship or country of incorporation or128
138+registration of any foreign person, foreign principal, or sovereign wealth fund affiliated129
139+with the person seeking to register as a litigation financier under this Code section in any130
140+capacity directly or indirectly related to such person's litigation financing business; and131
141+(6) Any other information deemed necessary by the department.132
142+(d) If the person seeking to register as a litigation financier is an entity, such entity shall133
143+file with the department a registration statement that provides, with respect to each person134
144+that directly or indirectly owns, controls, holds with the power to vote, or holds proxies135
145+representing 10 percent or more of the voting shares of the litigation financier, the136
146+following:137
147+(1) The legal name of each such person;138
148+(2) The principal business address and preferred mailing address of each such person;139
149+(3) If the person is an individual:140
150+(A) Such individual's occupation;141
151+(B) Any offices and positions held with the person seeking to register as a litigation142
152+financier during the past five years;143
153+- 6 - LC 49 2394S
154+(C) Any conviction of a crime other than misdemeanor traffic violations during the144
155+past ten years; and145
156+(D) The name, principal business address, and citizenship or country of incorporation146
157+or registration of any foreign person, foreign principal, or sovereign wealth fund147
158+affiliated with such individual in any capacity directly or indirectly related to such148
159+individual's litigation financing business;149
160+(4) If the person is an entity:150
161+(A) The nature of the entity's business operations during the past five years or a151
162+description of the business intended to be undertaken by the entity and such entity's152
163+subsidiaries, if any;153
164+(B) A list of all individuals who are or who have been selected to become directors or154
165+officers of the entity and each subsidiary of the entity, if any. Such list shall include for155
166+each individual the information required by paragraph (3) of this subsection; and156
167+(C) The name, principal business address, and citizenship or country of incorporation157
168+or registration of any foreign person, foreign principal, or sovereign wealth fund158
169+affiliated with the entity in any capacity directly or indirectly related to such entity's159
170+litigation financing business; and160
171+(5) Any other information deemed necessary by the department.161
172+(e) No person shall be registered as a litigation financier or shall engage in litigation162
173+financing in this state that is, in any capacity directly or indirectly related to such person's163
174+litigation financing business, affiliated with any foreign government or foreign164
175+nongovernment person or entity designated by the United States Secretary of Commerce165
176+as a foreign adversary pursuant to 15 C.F.R. Section 7.4, or any foreign person, foreign166
177+principal, or sovereign wealth fund thereof.167
178+(f) A person subject to registration under this Code section shall file, within 30 days of any168
179+change to the most recently filed registration or within 30 days of when such registration169
180+- 7 - LC 49 2394S
181+becomes inaccurate or incomplete in any respect, an amended registration with the170
182+department.171
183+(g) The commissioner is authorized to prescribe the forms and the filing fees that he or she172
184+deems necessary for the purposes of this chapter.173
185+(h) All documents and information filed with the department pursuant to this Code section174
186+are public records subject to disclosure pursuant to Article 4 of Chapter 18 of Title 50.175
187+7-10-3.176
188+(a) The department may deny a registration to act as a litigation financier or deny a177
189+registered litigation financier's amended registration pursuant to subsection (f) of Code178
190+Section 7-10-2 if the department finds that:179
191+(1) The requirements of this chapter have not been met; or180
192+(2) The applicant or registrant; any person who is a director, officer, partner, or owner181
193+of the applicant or registrant; or any individual who directs the affairs of or controls or182
194+establishes policy for the applicant or registrant has, within the last ten years, been183
195+convicted of a felony in any jurisdiction or of a crime which, if committed within this184
196+state, would constitute a felony under the laws of this state. For the purposes of this185
197+paragraph, a person shall be deemed to have been convicted of a crime if such person186
198+shall have pleaded guilty or nolo contendere to a charge thereof before a court or federal187
199+magistrate or shall have been found guilty of such crime by the decision or judgment of188
200+a court or federal magistrate or by the verdict of a jury, irrespective of the pronouncement189
201+of sentence or the suspension thereof and regardless of whether first offender treatment190
202+without adjudication of guilt pursuant to the charge was entered or an adjudication or191
203+sentence was otherwise withheld or not entered on such charge, unless and until such plea192
204+of guilty or such decision, judgment, or verdict shall have been set aside, reversed, or193
205+otherwise abrogated by lawful judicial process or until probation, sentence, or both, of194
206+a first offender without adjudication of guilt have been successfully completed and195
207+- 8 - LC 49 2394S
208+documented or unless the person convicted of the crime shall have received a pardon for196
209+such crime from the President of the United States or the governor or other pardoning197
210+authority in the jurisdiction where the conviction occurred.198
211+(b) Notice of the department's intention to enter an order denying a registration or an199
212+amended registration shall be provided to the applicant or registrant in writing, sent by200
213+registered or certified mail or statutory overnight delivery addressed to the principal place201
214+of business of such applicant or registrant. If a person refuses to accept service of the202
215+notice by registered or certified mail or statutory overnight delivery, the notice or order203
216+shall be served by the commissioner or the commissioner's authorized representative under204
217+any other method of lawful service, and the person shall be personally liable to the205
218+commissioner for a sum equal to the actual costs incurred to serve the notice or order. 206
219+Such liability shall be paid upon notice and demand by the commissioner or the207
220+commissioner's authorized representative and shall be assessed and collected in the same208
221+manner as other fees or fines administered by the commissioner.209
222+(c) Within 20 days of the date of the notice of intention to enter an order denying a210
223+registration or an amended registration, the applicant or registrant may request in writing211
224+a hearing to contest the order. If a hearing is not requested in writing within 20 days of the212
225+date of such notice of intention, the department shall enter a final order regarding the213
226+denial. Any final order of the department denying a registration or an amended registration214
227+shall state the grounds upon which it is based and shall be effective on the date of issuance. 215
228+A copy of such order shall be forwarded promptly by mail addressed to the principal place216
229+of business of such applicant or registrant.217
230+(d) A decision by the department denying a registration or an amended registration shall218
231+be subject to review in accordance with Chapter 13 of Title 50, the 'Georgia Administrative219
232+Procedure Act.'220
233+- 9 - LC 49 2394S
234+7-10-4.221
235+(a) A litigation financier shall not:222
236+(1) Direct, or make any decisions with respect to, the course of any civil action,223
237+administrative proceeding, legal claim, or other legal proceeding for which such litigation224
238+financier has provided litigation financing, or any settlement or other disposition thereof. 225
239+Such prohibition includes, but is not limited to, decisions in appointing or changing legal226
240+representatives, choice or use of expert witnesses, and litigation strategy. All rights to227
241+make decisions with respect to the course and settlement or other disposition of the228
242+subject civil action, administrative proceeding, legal claim, or other legal proceeding shall229
243+remain solely with the parties to such action, claim, or proceedings and their legal230
244+representatives. The provisions of this paragraph shall be strictly construed in favor of231
245+the individual or entity receiving litigation financing and against the litigation financier;232
246+(2) Pay or offer commissions, referral fees, rebates, or other forms of consideration to233
247+any person, including, but not limited to, an attorney or any employee of an attorney or234
248+a law firm, in exchange for referring a consumer or such consumer's legal representative235
249+to a litigation financier; provided, however, that this paragraph shall not apply to an236
250+employee, agent, or affiliate of the litigation financier;237
251+(3) Accept any commissions, referral fees, rebates, or other forms of consideration from238
252+any person, including, but not limited to, an attorney or any employee of an attorney or239
253+a law firm, for providing any goods or rendering any services to the consumer; provided,240
254+however, that this paragraph shall not apply to an employee, agent, or affiliate of the241
255+litigation financier;242
256+(4) Contract for, receive, or recover, whether directly or indirectly, any amount greater243
257+than an amount equal to the share of the proceeds collectively recovered by the plaintiffs244
258+or claimants in a civil action, administrative proceeding, legal claim, or other legal245
259+proceeding seeking to recover monetary damages financed by a litigation financing246
260+- 10 - LC 49 2394S
261+agreement after the payment of any attorney's fees and costs owed in connection to such247
262+action, claim, or proceedings;248
263+(5) Advertise false or misleading information regarding its products or services;249
264+(6) Refer or require any consumer to hire or engage any person providing any goods or250
265+rendering any services to the consumer;251
266+(7) Fail to promptly deliver a fully completed and signed litigation financing contract to252
267+the consumer and the consumer's legal representative;253
268+(8) Attempt to secure a remedy or obtain a waiver of any remedy, including, but not254
269+limited to, compensatory, statutory, or punitive damages, that the consumer may or may255
270+not be entitled to pursue or recover otherwise;256
271+(9) Offer or provide legal advice to the consumer;257
272+(10) Assign or securitize a litigation financing agreement in whole or in part; provided,258
273+however, that, if the litigation financier retains responsibility for collecting payment,259
274+administering, and otherwise enforcing the litigation funding contract, the prohibition260
275+provided in this paragraph shall not apply to an assignment:261
276+(A) To a wholly owned subsidiary of the litigation financier;262
277+(B) To an affiliate of the litigation financier that is under common control; or263
278+(C) Granting a security interest under Article 9 of the Uniform Commercial Code or264
279+as otherwise permitted by law; or265
280+(11) Report a consumer to a credit reporting agency if insufficient funds remain to repay266
281+the litigation financier in full from the proceeds received from any judgment, award,267
282+settlement, verdict, or other form of monetary relief obtained in a civil action,268
283+administrative proceeding, legal claim, or other legal proceeding that is the subject of the269
284+litigation financing agreement.270
285+(b) No person that provides any goods or renders any services related to the litigation to271
286+the consumer shall have a financial interest in litigation financing provided by a litigation272
287+financier to such consumer, and no such person shall receive any commissions, referral273
288+- 11 - LC 49 2394S
289+fees, rebates, or other forms of consideration from any litigation financier or the litigation274
290+financier's agents, employees, owners, or affiliates.275
291+7-10-5.276
292+(a) A litigation financier that agrees to provide $25,000.00 or more in funding pursuant to277
293+a litigation financing agreement may be jointly and severally liable for any award or order278
294+imposing or assessing costs or monetary sanctions for frivolous litigation against a279
295+consumer, entity, or a legal representative of such consumer or entity arising from or280
296+relating to any civil action, administrative proceeding, legal claim, or other legal281
297+proceeding for which the litigation financier is providing litigation financing; provided,282
298+however, that where the litigation financier's right of repayment is a fixed amount set by283
299+contract, the liability of such litigation financier shall not exceed the right of repayment less284
300+the amount already extended.285
301+(b) In each litigation financing contract, the litigation financier shall agree to indemnify,286
302+and shall indemnify even without such agreement, the plaintiffs and claimants to the civil287
303+action, administrative proceeding, legal claim, or other legal proceeding that is the subject288
304+of such litigation financing agreement and such plaintiffs' and claimants' legal289
305+representatives against any adverse costs, attorney's fees, damages, or sanctions that may290
306+be ordered or awarded against such persons in such action, claim, or proceedings; provided,291
307+however, that such indemnification shall not be required or enforceable for adverse costs,292
308+attorney's fees, damages, or sanctions that the litigation financier can show resulted from293
309+the intentional misconduct of such plaintiffs or claimants or their legal representatives.294
310+7-10-6.295
311+(a) The terms and conditions of a litigation financing agreement shall be set forth in a fully296
312+completed, written litigation financing contract with no material terms or conditions297
313+omitted, and such contract shall contain all material terms and conditions at the time it is298
314+- 12 - LC 49 2394S
315+signed by any party, including, but not limited to the right to cancel such litigation299
316+financing agreement without penalty or further obligation within five business days from300
317+the date the litigation financing contract is executed by or on behalf of the consumer or the301
318+date litigation financing is received from the litigation financier, whichever date is later.302
319+(b) Upon execution of a litigation financing contract, a litigation financier shall not amend303
320+the terms or conditions of the litigation financing agreement that is memorialized by such304
321+contract without full disclosure to and prior written consent of all parties to such litigation305
322+financing agreement.306
323+(c) Each litigation financing contract with a consumer shall set forth the name, principal307
324+business address, and preferred mailing address of the litigation financier on the first page308
325+of such contract, and the following disclosures shall be typed in at least 14 point bold font309
326+and placed clearly and conspicuously immediately above the consumer's signature line in310
327+the litigation financing contract:311
328+'IMPORTANT DISCLOSURES -- PLEASE READ CAREFULLY312
329+1. Right to Cancellation: You, the consumer, or your legal representative may cancel313
330+this litigation financing agreement without penalty or further obligation within314
331+five (5) business days from the date you sign this contract or the date you receive315
332+financing from the litigation financier, whichever date is later. You or your legal316
333+representative may cancel this litigation financing agreement by sending a notice of317
334+cancellation to the litigation financier and returning to the litigation financier any318
335+funds received from the litigation financier at the litigation financier's preferred319
336+mailing address set forth on page 1 of this contract.320
337+2. The maximum amount the litigation financier may receive or recover from any321
338+contingent payment provided for in this litigation financing agreement shall be no322
339+more than an amount equal to the share of the proceeds collectively recovered by the323
340+plaintiffs or claimants in a civil action, administrative proceeding, legal claim, or324
341+other legal proceeding seeking to recover monetary damages financed by this325
342+- 13 - LC 49 2394S
343+litigation financing agreement after the payment of any attorney's fees and costs owed326
344+in connection to such action, claim, or proceedings.327
345+3. The litigation financier agrees that it has no right to, and will not demand, request,328
346+receive, or exercise any right to, influence, affect, or otherwise make any decision in329
347+the handling, conduct, administration, litigation, settlement, or resolution of your civil330
348+action, administrative proceeding, legal claim, other legal proceeding. All of these331
349+rights remain solely with you and your legal representative.332
350+4. You, the consumer, are not required by the terms of this litigation financing333
351+agreement to continue to be represented by any particular legal representative, and the334
352+litigation financing agreement does not include any right for the litigation financier,335
353+any legal representative, or any other person to claim or seek to recover any336
354+assessment, charge, fee, penalty, or damages of any kind if you elect to change legal337
355+representatives at any time.338
356+5. If there is no recovery of any money from your civil action, administrative339
357+proceeding, legal claim, or other legal proceeding, or if there is not enough money to340
358+satisfy in full the portion assigned to the litigation financier, you will not owe341
359+anything in excess of your recovery.342
360+6. You are entitled to a fully completed litigation financing contract with no material343
361+terms or conditions omitted prior to signing. Before signing the litigation financing344
362+contract, or authorizing anyone to sign it on your behalf, you should read the contract345
363+completely and consult an attorney.'346
364+(d) Only the consumer shall be authorized to execute a litigation financing contract on his347
365+or her own behalf, except in such cases where the consumer lacks the legal capacity to348
366+execute a contract. The consumer's legal representative in the civil action, administrative349
367+proceeding, legal claim, or other legal proceeding seeking to recover monetary damages350
368+financed by the corresponding litigation financing agreement shall not execute a litigation351
369+financing contract on behalf of the consumer. A litigation financing contract executed by352
370+- 14 - LC 49 2394S
371+such legal representative on behalf of such consumer shall be void and unenforceable as353
372+a matter of law.354
373+(e) If the consumer is represented by a legal representative in the civil action,355
374+administrative proceeding, legal claim, or other legal proceeding that is the subject of the356
375+litigation financing agreement, the legal representative shall acknowledge in the litigation357
376+financing contract that the legal representative and the legal representative's employer and358
377+employees have not received or paid a commission, referral fee, rebate, or any other359
378+consideration from or to the litigation financier and have no obligation to do so in the360
379+future.361
380+(f) If the consumer's legal representative is a party to a litigation financing agreement362
381+related to the consumer's civil action, administrative proceeding, legal claim, or other legal363
382+proceeding that is the subject of the consumer's litigation financing agreement, the legal364
383+representative shall disclose and deliver a copy of his or her litigation financing contract365
384+to the consumer. Following such disclosure and delivery, the consumer shall sign an366
385+acknowledgment that the consumer has read and understands the terms and conditions of367
386+his or her legal representative's litigation financing contract. Such consumer shall be368
387+provided with a copy of such signed acknowledgment.369
388+7-10-7.370
389+The provisions of this chapter shall not apply to:371
390+(1) A nonprofit entity that provides litigation financing, directly or indirectly, for the372
391+benefit of such nonprofit entity or one or more of its members without receiving, in373
392+consideration for the litigation financing:374
393+(A) The payment of interest, fees, or other consideration; or375
394+(B) Except for in-house counsel of such nonprofit entity, any right to recovery or376
395+payment from the amount of any judgment, award, settlement, verdict, or other form377
396+- 15 - LC 49 2394S
397+of monetary relief obtained in the civil action, administrative proceeding, legal claim,378
398+or other legal proceeding;379
399+(2) Any litigation financing provided by an entity engaged in commerce or business380
400+activity; provided, however, that this exemption shall apply only if such entity does not:381
401+(A) Charge, contract for, collect, or receive any interest, fees, or other consideration;382
402+(B) Retain or receive any financial interest in the outcome of the civil action,383
403+administrative proceeding, legal claim, or other legal proceeding; or384
404+(C) Retain or receive any right to recovery or payment from the amount of any385
405+judgment, award, settlement, verdict, or other form of monetary relief obtained in the386
406+civil action, administrative proceeding, legal claim, or other legal proceeding; or387
407+(3) A lender that does not receive, in consideration for loaning money to any person, a388
408+right to receive payment from the value of any proceeds or other consideration realized389
409+from any judgment award, settlement, verdict, or other form of monetary relief any390
410+person may receive or recover in relation to any civil action, administrative proceeding,391
411+legal claim, or other legal proceeding.392
412+7-10-8.393
413+Any violation of this chapter by a litigation financier renders the litigation financing394
414+agreement void and unenforceable by such litigation financier or any successor-in-interest395
415+to the litigation financing agreement.396
416+7-10-9.397
417+(a) It is unlawful for a litigation financier to enter into or offer to enter into a litigation398
418+financing agreement unless such litigation financier is registered under this chapter.399
419+(b) A person that willfully violates this chapter shall be guilty of a felony and upon400
420+conviction thereof, shall be imprisoned not less than one nor more than five years, or fined401
421+not more than $10,000.00, or both; provided, however, that on the recommendation of the402
422+- 16 - LC 49 2394S
423+jury trying the case, when such recommendation is approved by the judge presiding on the403
424+trial, such crime shall be punished as a misdemeanor. If the judge trying the case deems404
425+it proper, such judge may, in fixing the punishment, reduce such felony to a misdemeanor.405
426+(c) The commissioner may refer to the Attorney General or the proper prosecuting attorney406
427+the name of any person acting as a litigation financier that is not registered or any applicant407
428+or registrant that is or may not be in compliance with this chapter; provided, however, that408
429+the Attorney General or the proper prosecuting attorney may institute criminal proceedings409
430+under this chapter with or without such referral.410
431+(d) This chapter does not limit the power of this state to punish a person for conduct that411
432+constitutes a crime under other laws of this state.412
433+7-10-10.413
434+(a) The department is authorized to:414
435+(1) Participate in the nation-wide multistate licensing system and registry in order to415
436+facilitate the sharing of information and standardization of the registration processes for416
437+litigation financiers by electronic or other means;417
438+(2) Enter into operating agreements, information sharing agreements, interstate418
439+cooperative agreements, and other contracts necessary for the department's participation419
440+in the nation-wide multistate licensing system and registry;420
441+(3) Request that the nation-wide multistate licensing system and registry adopt an421
442+appropriate privacy, data security, and security breach notification policy that is in full422
443+compliance with existing state and federal law;423
444+(4) Disclose or cause to be disclosed without liability via the nation-wide multistate424
445+licensing system and registry registration information, including, but not limited to,425
446+violations of this chapter and enforcement actions;426
447+(5) Establish and adopt, by rule or regulation, requirements for participation by427
448+registrants in the nation-wide multistate licensing system and registry upon the428
449+- 17 - LC 49 2394S
450+department's determination that each new or amended requirement is consistent with both429
451+the public interest and the purposes of this chapter; and430
452+(6) Pay all fees received from applicants and registrants related to registrations to the431
453+Office of the State Treasurer; provided, however, that the department may net such fees432
454+to recover the cost of participation in the nation-wide multistate licensing system and433
455+registry.434
456+(b) Irrespective of its participation in the nation-wide multistate licensing system and435
457+registry, the department retains full and exclusive authority over determinations whether436
458+to grant registrations to litigation financiers under this chapter. Nothing in this Code437
459+section shall be construed to reduce this authority.438
460+(c) Applicants and registrants shall be required to pay any charges associated with their439
461+utilization of the nation-wide multistate licensing system and registry.440
462+7-10-11.441
463+The commissioner is authorized to adopt rules and other policies in overseeing the practice442
464+of litigation financing consistent with this chapter."443
465+SECTION 3.444
466+Article 5 of Chapter 11 of Title 9 of the Official Code of Georgia Annotated, relating to445
467+depositions and discovery under the "Georgia Civil Practice Act," is amended in Code446
468+Section 9-11-26, relating to general provisions governing discovery, by adding a new447
469+paragraph to subsection (b) to read as follows:448
470+"(2.1)(A) Litigation financing agreement. A party may obtain discovery of the449
471+existence and terms and conditions of any litigation financing agreement, as such term450
472+is defined in Code Section 7-10-1, the subject of which is or includes the pending451
473+action; provided, however, that this subparagraph shall not apply to nonparties unless452
474+the litigation financing agreement is for $25,000.00 or more in funding.453
475+- 18 - LC 49 2394S
476+(B) Information concerning the litigation financing agreement is not by reason of454
477+disclosure admissible in evidence at trial; provided, however, that nothing in this455
478+subparagraph shall be construed to limit the admissibility of such information as456
479+evidence of a party's claim or defense;"457
480+SECTION 4.458
481+(a) Except as provided in subsection (b) of this section, this Act shall become effective on459
482+January 1, 2026.460
483+(b) Section 3 of this Act shall become effective upon its approval by the Governor or upon461
484+its becoming law without such approval and shall apply to:462
485+(1) Any civil action, administrative proceedings, legal claims, or other legal proceedings463
486+commenced on or after the effective date of this Act; and464
487+(2) Any contracts entered into on or after the effective date of this Act.465
488+SECTION 5.466
489+All laws and parts of laws in conflict with this Act are repealed.467
490+- 19 -