Introduced Version
HOUSE BILL No. 1160
_____
DIGEST OF INTRODUCED BILL
Citations Affected: IC 24-12.
Synopsis: Civil proceeding advance payment contracts. Prevents a
CPAP provider from making any decision, having any influence, or
directing the consumer claimant or the consumer claimant's attorney
with respect to the conduct of the underlying civil proceeding. Prohibits
a CPAP provider from taking certain other actions. Requires a
consumer claimant or the consumer claimant's attorney to provide a
copy of a CPAP contract entered into by the consumer claimant to: (1)
each of the other parties in a civil proceeding; and (2) each insurer that
has a duty to defend another party in the civil action.
Effective: July 1, 2024.
Lehman
January 8, 2024, read first time and referred to Committee on Judiciary.
2024 IN 1160—LS 6780/DI 149 Introduced
Second Regular Session of the 123rd General Assembly (2024)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2023 Regular Session of the General Assembly.
HOUSE BILL No. 1160
A BILL FOR AN ACT to amend the Indiana Code concerning trade
regulation.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 24-12-3-1, AS AMENDED BY P.L.85-2017,
2 SECTION 97, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
3 JULY 1, 2024]: Sec. 1. A CPAP provider may not do any of the
4 following:
5 (1) Pay or offer to pay a commission, referral fee, or other form of
6 consideration to any attorney, law firm, medical provider,
7 chiropractor, or physical therapist, or any of their employees for
8 referring a consumer claimant to the provider.
9 (2) Accept a commission, referral fee, rebate, or other form of
10 consideration from an attorney, law firm, medical provider,
11 chiropractor, or physical therapist, or any of their employees.
12 (3) Intentionally advertise materially false or misleading
13 information regarding the CPAP provider's products or services.
14 (4) Refer, in furtherance of an initial CPAP transaction, a
15 consumer claimant or potential consumer claimant to a specific
16 attorney, law firm, medical provider, chiropractor, or physical
17 therapist, or any of their employees. However, if a consumer
2024 IN 1160—LS 6780/DI 149 2
1 claimant needs legal representation, the CPAP provider may refer
2 the person to a local or state bar association referral service.
3 (5) Knowingly provide funding to a consumer claimant who has
4 previously assigned or sold a part of the consumer claimant's right
5 to proceeds from the consumer claimant's civil proceeding
6 without first making payment to or purchasing a prior unsatisfied
7 CPAP provider's entire funded amount and contracted charges,
8 unless a lesser amount is otherwise agreed to in writing by the
9 prior CPAP provider. However, multiple CPAP providers may
10 agree to provide a CPAP transaction to a consumer claimant
11 simultaneously if the consumer claimant and the consumer
12 claimant's attorney consent to the arrangement in writing.
13 (6) Receive any right to Make any decision, have any influence,
14 or direct the consumer claimant or the consumer claimant's
15 attorney with respect to the conduct of the underlying civil
16 proceeding or any settlement or resolution of the civil proceeding,
17 or make any decision with respect to the conduct of the
18 underlying civil proceeding or any settlement or resolution of the
19 civil proceeding. The right to make these decisions remains solely
20 with the consumer claimant and the attorney in the civil
21 proceeding.
22 (7) Knowingly pay or offer to pay for court costs, filing fees, or
23 attorney's fees either during or after the resolution of the civil
24 proceeding, using funds from the CPAP transaction.
25 (8) Provide funding to a consumer claimant that is directly or
26 indirectly financed by any:
27 (A) person that does not reside; or
28 (B) corporation or entity that is not domiciled;
29 within the United States.
30 (9) Disclose or share:
31 (A) privileged or confidential materials;
32 (B) proprietary information; or
33 (C) any other documents or information subject to a court
34 order to seal or protect;
35 that is received in the course of the civil proceeding with any
36 person that is not a party to the civil proceeding.
37 SECTION 2. IC 24-12-4-2, AS ADDED BY P.L.63-2023,
38 SECTION 1, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
39 JULY 1, 2024]: Sec. 2. (a) Except as provided in subsection (c), in a
40 civil proceeding in which a consumer claimant is a party, the consumer
41 claimant or the consumer claimant's attorney shall provide to:
42 (1) each of the other parties in the civil proceeding; and
2024 IN 1160—LS 6780/DI 149 3
1 (2) each insurer that has a duty to defend another party in the civil
2 proceeding;
3 written notice a copy of the CPAP contract that the consumer
4 claimant has entered into a CPAP contract with a CPAP provider.
5 (b) A consumer claimant or the consumer claimant's attorney shall
6 provide the written notice copies of a CPAP contract required by
7 subsection (a) within a reasonable time after the date on which the
8 consumer claimant and the CPAP provider enter into the CPAP
9 contract, regardless of whether any other party in the civil proceeding
10 is aware of the existence of or seeks information about the CPAP
11 contract.
12 (c) Subsection (a) does not apply if the court in which the civil
13 proceeding is filed issues an order excusing the consumer claimant
14 from the duty to provide the written notice required by subsection (a).
15 (d) In a civil proceeding in which a consumer claimant is a party,
16 the existence and contents of the CPAP contract are subject to
17 discovery under the Indiana Rules of Trial Procedure by: if:
18 (1) a party other than the consumer claimant; or
19 (2) an insurer that has a duty to defend another party in the civil
20 proceeding;
21 does not receive a copy of the CPAP contract that the consumer
22 claimant has entered into, the existence and contents of the CPAP
23 contract are subject to discovery by the other party or the insurer
24 under the Indiana Rules of Trial Procedure.
25 (e) The written notice provided under subsection (a) is not
26 admissible as evidence in a court proceeding.
2024 IN 1160—LS 6780/DI 149