Massachusetts 2025-2026 Regular Session

Massachusetts Senate Bill S680 Compare Versions

Only one version of the bill is available at this time.

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2	2	SENATE DOCKET, NO. 2170 FILED ON: 1/17/2025
3	3	SENATE . . . . . . . . . . . . . . No. 680
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Nick Collins
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act to provide transparency in third party litigation financing.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Nick CollinsFirst Suffolk 1 of 18
16	16	SENATE DOCKET, NO. 2170 FILED ON: 1/17/2025
17	17	SENATE . . . . . . . . . . . . . . No. 680
18	18	By Mr. Collins, a petition (accompanied by bill, Senate, No. 680) of Nick Collins for legislation
19	19	to provide transparency in third party litigation financing. Financial Services.
20	20	The Commonwealth of Massachusetts
21	21	_______________
22	22	In the One Hundred and Ninety-Fourth General Court
23	23	(2025-2026)
24	24	_______________
25	25	An Act to provide transparency in third party litigation financing.
26	26	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
27	27	of the same, as follows:
28	28	1 SECTION 1: Chapter 167 of the General Laws is hereby amended by adding the
29	29	2following Chapter after Chapter 167J:
30	30	3 Chapter 167K: Litigation Financing
31	31	4 Section 1. As used in this Chapter, the following terms shall have the following
32	32	5meanings:
33	33	6 Section 1. As used in this Chapter, the following terms shall have the following
34	34	7meanings:
35	35	8 1. "Advertise" means publishing or disseminating any written, oral, electronic or printed
36	36	9communication or any communication by means of recorded telephone messages or transmitted
37	37	10or broadcast on radio, television, the internet or similar communications media, including audio
38	38	11recordings, film strips, motion pictures and videos, published, disseminated, circulated or placed 2 of 18
39	39	12before the public, directly or indirectly, for the purpose of inducing a consumer to enter into a
40	40	13consumer litigation funding.
41	41	14 2. "Charges" means the amount of money to be paid to the consumer litigation funding
42	42	15company by or on behalf of the consumer, above the funded amount provided by or on behalf of
43	43	16the company to a consumer pursuant to this Chapter. Charges include all administrative,
44	44	17origination, underwriting or other fees, including interest, no matter how denominated. Such
45	45	18charges shall annually not exceed 36% and a one-time document preparation fee as established
46	46	19by the Division of Banks. Any contract which exceeds such rate shall be considered usurious as
47	47	20defined by Chapter 271, Section 49 of the Massachusetts General Laws.
48	48	21 3. "Commercial litigation financier" means a person that enters into, or offers to enter
49	49	22into, a commercial litigation financing agreement with a plaintiff or with lawyers or law firms
50	50	23asserting legal claims on behalf of the plaintiff in a civil proceeding. The term does not include a
51	51	24nonprofit organization exempt from federal income tax under section 501(c)(3) of the United
52	52	25States Internal Revenue Code.
53	53	26 4. "Commercial litigation financing agreement":
54	54	27 (a) The term “commercial litigation financing agreement” means, with respect to any
55	55	28civil action or group of civil actions, a written agreement—
56	56	29 (i) whereby a third party agrees to provide funds to one of the named parties or any law
57	57	30firm affiliated with the action or group of civil actions, and
58	58	31 (ii) which creates a direct or collateralized interest in the proceeds of a civil action or
59	59	32group of civil actions—by settlement, verdict, judgment or otherwise—and whose interest is 3 of 18
60	60	33based in whole or part on a funding-based obligation to the action or group of actions or the
61	61	34appearing counsel or any contractual co-counsel or the law firm(s) of the counsel or co-counsel
62	62	35executed with:
63	63	36 (A) any attorney representing a party; or
64	64	37 (B) any co-counsel in the litigation with a contingent fee interest in the representation of
65	65	38that party; or
66	66	39 (C) any third-party who has a collateral-based interest in the contingency fees of the
67	67	40counsel or co-counsel firm related in whole or part to the fees derived from
68	68	41 representing that party.
69	69	42 (b) The term “litigation financing agreement” shall also include any contract, including
70	70	43any option, forward contract, futures contract, short position, swap, or similar contract, or other
71	71	44agreement that is substantially similar to a litigation financing agreement.
72	72	45 (c) The term does not include a consumer litigation funding transaction, an agreement
73	73	46between an attorney and a client for the attorney to provide legal services on a contingency fee
74	74	47basis or to advance the client's legal costs, a health insurance plan or agreement, a repayment
75	75	48agreement of a financial institution if repayment is not contingent upon the outcome of the civil
76	76	49proceeding, a funding agreement to a nonprofit organization that represents a client on a pro
77	77	50bono basis, or an agreement of an assigned claim to prosecute an environmental contamination
78	78	51matter seeking remediation of, or to recover the cost of remediating, a site that is or has been on
79	79	52the U.S. Environmental Protection Agency’s Superfund National Priorities List.
80	80	53 5. “Commissioner” means the commissioner of the Division of Banks. 4 of 18
81	81	54 6. "Consumer" means a natural person who resides or is domiciled in Massachusetts or is
82	82	55a plaintiff in a civil action in Massachusetts. The term includes estate for a decedent related to
83	83	56wrongful death claims.
84	84	57 7. "Consumer litigation funding" means a non-recourse transaction in which a consumer
85	85	58litigation funding company purchases, with funds paid directly to the consumer, and a consumer
86	86	59assigns to the company a contingent right to receive an amount of the potential proceeds of a
87	87	60settlement, judgment, award, or verdict obtained in the consumer's legal claim.
88	88	61 8. "Consumer litigation funding company" or "company" means a person or entity that
89	89	62enters into a consumer litigation funding contract with a consumer. This term shall not include:
90	90	63 (a) an immediate family member of the consumer;
91	91	64 (b) a bank, lender, financing entity, or other special purpose entity:
92	92	65 (i) that provides financing to a consumer litigation funding company; or
93	93	66 (ii) to which a consumer litigation funding company grants a security interest or transfers
94	94	67any rights or interest in a consumer litigation funding; or
95	95	68 (c) an attorney or accountant who provides services to a consumer.
96	96	69 9. “Division” means the Division of Banks.
97	97	70 10. “Foreign country or person of concern” includes the following:
98	98	71 (a) A foreign government or person listed in 15 CFR 791.4.
99	99	72 (b) A country designated as a threat to critical infrastructure by the governor. 5 of 18
100	100	73 11. “Foreign entity of concern” means a partnership, association corporation,
101	101	74organization, or other combination of persons:
102	102	75 (a) organized or incorporated in a foreign country of concern;
103	103	76 (b) owned or controlled by the government, a political subsection, or a political party of a
104	104	77foreign country of concern;
105	105	78 (c) that has a principal place of business in a foreign country of concern; or
106	106	79 (d) that is owned, organized, or controlled by or affiliated with a foreign organization that
107	107	80has been:
108	108	81 (i) placed on the federal Office of Foreign Assets Control specially
109	109	82 designated nationals and blocked persons list (“SDN List”); or
110	110	83 (ii) designated by the United States Secretary of State as a foreign terrorist
111	111	84 organization.
112	112	85 (e) “Foreign entity of concern” shall also include any individual that owns, has a
113	113	86 controlling interest in, or is a director or senior officer of any entity that falls within
114	114	87 subsections 9(a) through (d) of this section.
115	115	88 12. "Funded amount" means the amount of monies provided to, or on behalf of, the
116	116	89consumer in the consumer litigation funding contract. "Funded amount" excludes charges. 6 of 18
117	117	90 13. "Funding date" means the date on which the funded amount is transferred to the
118	118	91consumer by the consumer litigation funding company either by personal delivery or via wire,
119	119	92ACH or other electronic means or mailed by insured, certified or registered United States mail.
120	120	93 14. "Immediate family member" means a parent; sibling; child by blood, adoption, or
121	121	94marriage; spouse; grandparent; or grandchild.
122	122	95 15. "Legal claim" means a civil claim or cause of action.
123	123	96 16. "Resolution date" means the date the funded amount, plus the agreed upon charges,
124	124	97are
125	125	98 delivered to the consumer litigation funding company by the consumer, the consumer's
126	126	99attorney or otherwise.
127	127	100 Section 2 1. All consumer litigation funding contracts shall meet the following
128	128	101requirements:
129	129	102 (a) a contract shall be written in a clear and coherent manner using words with common,
130	130	103everyday meanings to enable the average consumer who makes a reasonable effort under
131	131	104ordinary circumstances to read and understand the terms of the contract without having to obtain
132	132	105the assistance of a professional;
133	133	106 (b) the contract shall be completely filled in when presented to the consumer for
134	134	107signature;
135	135	108 (c) the contract shall contain, in twelve-point bold type font, a right of rescission,
136	136	109allowing the consumer to cancel the contract without penalty or further obligation if, within ten 7 of 18
137	137	110business days after the funding date, the consumer returns to the consumer litigation funding
138	138	111company the full amount of the disbursed funds;
139	139	112 (d) the contract shall contain the initials of the consumer on each page;
140	140	113 (e) a statement that there are no fees or charges to be paid by the consumer other than
141	141	114what is disclosed on the disclosure form;
142	142	115 (f) in the event the consumer seeks more than one litigation funding contract from the
143	143	116same company, a disclosure providing the cumulative amount due from the consumer for all
144	144	117transactions, including charges under all contracts, if repayment is made any time after the
145	145	118contracts are executed;
146	146	119 (g) a statement of the maximum amount the consumer may be obligated to pay under the
147	147	120contract other than in a case of material breach, fraud or misrepresentation by or on behalf of the
148	148	121consumer; and
149	149	122 (h) clear and conspicuous detail of how charges, including any applicable fees, are
150	150	123incurred or accrued.
151	151	124 2. The contract shall contain a written acknowledgement by the attorney retained by the
152	152	125 consumer in the legal claim that attests to the following:
153	153	126 (a) the attorney has reviewed the mandatory disclosures in Section 7 of this Chapter with
154	154	127the consumer;
155	155	128 (b) the attorney is being paid on a contingency basis pursuant to a written fee agreement; 8 of 18
156	156	129 (c) all proceeds of the legal claim will be disbursed via either the trust account of the
157	157	130attorney or a settlement fund established to receive the proceeds of the legal claim on behalf of
158	158	131the consumer;
159	159	132 (d) the attorney is obligated to disburse funds from the legal claim and take any other
160	160	133steps to ensure that the terms of the litigation funding contract are fulfilled;
161	161	134 (e) the attorney has not received a referral fee or other consideration from the consumer
162	162	135litigation funding company in connection with the consumer litigation funding, nor will the
163	163	136attorney receive such fee or other consideration in the future; and
164	164	137 (f) the attorney in the legal claim has provided no tax, public or private benefit planning,
165	165	138or financial advice regarding this transaction.
166	166	139 3. In the event that the acknowledgement required pursuant to subsection two of this
167	167	140section is not provided by the attorney or firm retained by the consumer in the legal claim, the
168	168	141contract shall be null and void. The contract shall remain valid and enforceable in the event the
169	169	142consumer terminates the initial attorney or retains a new attorney with respect to the legal claim.
170	170	143 4. Notwithstanding any law to the contrary, no prepayment penalties or fees shall be
171	171	144charged or collected on consumer litigation funding. A prepayment penalty on consumer
172	172	145litigation funding shall be unenforceable.
173	173	146 Section 3. 1. Consumer litigation funding companies shall be prohibited from:
174	174	147 (a) paying or offering to pay commissions, referral fees, or other forms of consideration
175	175	148to any attorney, law firm, healthcare provider, chiropractor or physical therapist or any of their
176	176	149employees for referring a consumer to the company; 9 of 18
177	177	150 (b) accepting any commissions, referral fees, rebates or other forms of consideration from
178	178	151an attorney, law firm, healthcare provider, chiropractor or physical therapist or any of their
179	179	152employees;
180	180	153 (c) intentionally advertising materially false or misleading information regarding its
181	181	154products or services;
182	182	155 (d) referring, in furtherance of an initial legal funding, a customer or potential customer
183	183	156to a specific attorney, law firm, healthcare provider, chiropractor or physical therapist or any of
184	184	157their employees; provided, however, if a customer needs legal representation, the company may
185	185	158refer the customer to a local or state bar association referral service;
186	186	159 (e) knowingly providing funding to a consumer who has previously assigned or sold a
187	187	160portion of the consumer's right to proceeds from his or her legal claim without first making
188	188	161payment to or purchasing a prior unsatisfied consumer litigation funding company's entire
189	189	162funded amount and contracted charges, unless a lesser amount is otherwise agreed to in writing
190	190	163by the consumer litigation funding companies, except that multiple companies may agree to
191	191	164contemporaneously provide funding to a consumer provided that the consumer and the
192	192	165consumer's attorney consent to the arrangement in writing;
193	193	166 (f) having any influence, receiving any right to, or making, any decisions with respect to
194	194	167the conduct of the underlying legal claim or any settlement or resolution thereof. The right to
195	195	168make such decisions shall remain solely with the consumer and the attorney in the legal claim;
196	196	169 (g) attempting to obtain a waiver of any remedy or right by the consumer, including but
197	197	170not limited to the right to trial by jury; and 10 of 18
198	198	171 (h) knowingly paying or offering to pay for court costs, filing fees or attorney's fees
199	199	172either during or after the resolution of the legal claim, using funds from the consumer litigation
200	200	173funding transaction.
201	201	174 2. An attorney or law firm retained by the consumer in the legal claim shall not have a
202	202	175financial interest in the consumer litigation funding company offering consumer litigation
203	203	176funding to that consumer.
204	204	177 3. Any attorney who has referred the consumer to his or her retained attorney shall not
205	205	178have a financial interest in the consumer litigation funding company offering consumer litigation
206	206	179funding to that consumer.
207	207	180 4. The attorney may only disclose privileged information to the consumer litigation
208	208	181funding company with the written consent of the consumer.
209	209	182 5. A consumer litigation funding company may not provide funding to a consumer
210	210	183litigation funding transaction that is directly or indirectly financed by anyone included within
211	211	184Section 3.(8) or (9).
212	212	185 Section 4. The contracted amount to be paid to the consumer litigation funding company
213	213	186shall be a predetermined amount based upon intervals of time from the funding date through the
214	214	187resolution date, and shall not be determined as a percentage of the recovery from the legal claim.
215	215	188 Section 5. 1. In a civil proceeding in which a plaintiff enters into a consumer litigation
216	216	189financing agreement, and thus the contracted funds are not provided for the prosecution of the
217	217	190litigation, the plaintiff or the plaintiff’s attorney shall provide to each of the other parties in the 11 of 18
218	218	191civil proceeding, and each insurer that has a duty to defend another party in the civil proceeding,
219	219	192written notice that the plaintiff has entered into a consumer litigation funding contract.
220	220	193 2. In a civil proceeding in which a plaintiff enters into a consumer litigation funding
221	221	194contract, the contents of the consumer litigation funding contract are subject to discovery under
222	222	195the Massachusetts Rules of Civil Procedure and Evidence, subject to this legislative finding that
223	223	196said contents are relevant to the civil proceeding, by a party other than the plaintiff, or an insurer
224	224	197that has a duty to defend another party in the civil proceeding.
225	225	198 3. A plaintiff or the plaintiff’s attorney shall provide the written notice required by
226	226	199subsection 1. of this section within 30 days after the date on which the consumer litigation
227	227	200funding contract was executed.
228	228	201 4. The written notice provided under subsection 1. of this section is presumed not
229	229	202admissible as evidence in a court proceeding, subject to rebuttal
230	230	203 5. All consumer litigation funding contracts shall contain the disclosures specified in this
231	231	204section, which shall constitute material terms of the contract. Unless otherwise specified, such
232	232	205disclosures shall be typed in at least twelve-point bold type font and be placed clearly and
233	233	206conspicuously within the contract, as follows:
234	234	207 (a) On the front page under appropriate headings, language specifying:
235	235	208 (i) the funded amount to be paid to the consumer by the consumer litigation funding
236	236	209company;
237	237	210 (ii) an itemization of one-time charges; 12 of 18
238	238	211 (iii) the maximum total amount to be assigned by the consumer to the company,
239	239	212including the funded amount and all charges; and
240	240	213 (iv) a payment schedule to include the funded amount and charges, listing all dates and
241	241	214the amount due at the end of each six month period from the funding date, until the date the
242	242	215maximum amount due to the company pursuant to the contract is paid.
243	243	216 (b) Pursuant to the provisions set forth in this section, within the body of the contract:
244	244	217"Consumer's right to cancellation: you may cancel this contract without penalty or further
245	245	218obligation within ten business days after the funding date if you return to the consumer litigation
246	246	219funding company the full amount of the disbursed funds."
247	247	220 (c) The consumer litigation funding company shall have no role in deciding whether,
248	248	221when and how much the legal claim is settled for, however, the consumer and consumer's
249	249	222attorney must notify the company of the outcome of the legal claim by settlement or adjudication
250	250	223prior to the resolution date. The company may seek updated information about the status of the
251	251	224legal claim but in no event shall the company interfere with the independent professional
252	252	225judgement of the attorney in the handling of the legal claim or any settlement thereof.
253	253	226 (d) Within the body of the contract, in all capital letters in at least twelve-point bold type
254	254	227font contained within a box: "THE FUNDED AMOUNT AND AGREED UPON CHARGES
255	255	228SHALL BE PAID ONLY FROM THE PROCEEDS OF YOUR LEGAL CLAIM, AND SHALL
256	256	229BE PAID ONLY TO THE EXTENT THAT THERE ARE AVAILABLE PROCEEDS FROM
257	257	230YOUR LEGAL CLAIM. YOU WILL NOT OWE (INSERT NAME OF THE CONSUMER
258	258	231LITIGATION FUNDING COMPANY) ANYTHING IF THERE ARE NO PROCEEDS FROM
259	259	232YOUR LEGAL CLAIM, UNLESS YOU HAVE VIOLATED ANY MATERIAL TERM OF 13 of 18
260	260	233THIS CONTRACT OR YOU HAVE COMMITTED FRAUD AGAINST (INSERT NAME OF
261	261	234CONSUMER LITIGATION FUNDING COMPANY)."
262	262	235 (e) Located immediately above the place on the contract where the consumer's signature
263	263	236is required, in twelve-point bold type font: "Do not sign this contract before you read it
264	264	237completely. Do not sign this contract if it contains any blank spaces. You are entitled to a
265	265	238completely filled-in copy of the contract before you sign this contract. You should obtain the
266	266	239advice of any attorney. Depending on the circumstances, you may want to consult a tax, public
267	267	240or private benefits planning, or financial professional. You acknowledge that your attorney in the
268	268	241legal claim has provided no tax, public or private benefit planning, or financial advice regarding
269	269	242this transaction. You further acknowledge that your attorney has explained the terms and
270	270	243conditions of the consumer litigation funding contract."
271	271	244 (f) A copy of the executed contract shall promptly be delivered to the attorney for the
272	272	245consumer.
273	273	246 Section 6. 1. Any consumer litigation funding company found in willful violation of any
274	274	247provision of this article in a specific funding case:
275	275	248 (a) waives its right to recover both the funded amount and any and all charges, as defined
276	276	249in Section 3 of this Chapter, in that particular case; and
277	277	250 (b) shall be liable for a civil penalty for each violation, which shall accrue to the general
278	278	251fund and may be recovered in a civil action brought by the attorney general. 14 of 18
279	279	252 2. Nothing in this Chapter shall be construed to restrict the exercise of powers or the
280	280	253performance of the duties of the Massachusetts attorney general, which he or she is authorized to
281	281	254exercise or perform by law.
282	282	255 Section 7. 1. The contingent right to receive an amount of the potential proceeds of a
283	283	256legal claim is assignable by a consumer to a consumer litigation funding company.
284	284	257 2. Only attorney's liens related to the legal claim which is the subject of the consumer
285	285	258litigation funding or Medicare or other statutory liens related to the legal claim shall take priority
286	286	259over any lien of the consumer litigation funding company.
287	287	260 Section 8. Communications between a consumer's attorney and a consumer litigation
288	288	261funding company to allow the consumer litigation funding company to ascertain the status of a
289	289	262legal claim or a legal claim’s expected value shall not be discoverable by a person against whom
290	290	263the legal claim is asserted or filed.
291	291	264 Section 9. 1. Unless a consumer litigation funding company or commercial litigation
292	292	265financier has first registered with the Division of Banks pursuant to this Chapter, the company or
293	293	266financier may not engage in the business of consumer or commercial litigation funding in this
294	294	267state.
295	295	268 2. An applicant's registration must be filed in the manner prescribed by the commissioner
296	296	269of the Division of Banks and must contain all the information required by the division to make
297	297	270an evaluation of the character and fitness of the applicant company or financier, including but not
298	298	271limited to any beneficial ownership exceeding 20%. The initial application must be accompanied
299	299	272by a fee established by the commissioner. A renewal registration must include a fee established 15 of 18
300	300	273by the commissioner. A registration must be renewed every two years and expires on the thirtieth
301	301	274of September.
302	302	275 3. A certificate of registration may not be issued unless the division, upon investigation,
303	303	276finds that the character and fitness of the applicant company or financier, and of the officers and
304	304	277directors thereof, are such as to warrant belief that the business will be operated honestly and
305	305	278fairly within the purposes of this Chapter.
306	306	279 4. Every registrant shall also, at the time of filing such application, file with the division,
307	307	280if the division so requires, a bond satisfactory to the division. In lieu of the bond at the option of
308	308	281the registrant, the registrant may post an irrevocable letter of credit. The terms of the bond must
309	309	282run concurrent with the period of time during which the registration will be in effect. The bond
310	310	283must provide that the registrant will faithfully conform to and abide by
311	311	284 the provisions of this Chapter and to all rules lawfully made by the administrator under
312	312	285this Chapter and to any such person or persons any and all amounts of money that may become
313	313	286due or owing to the state or to such person or persons from the registrant under and by virtue of
314	314	287this Chapter during the period for which the bond is given.
315	315	288 5. Upon written request, the applicant shall be entitled to a hearing on the question of the
316	316	289applicant's qualifications for registration if:
317	317	290 (a) the division has notified the applicant in writing that the application has been denied,
318	318	291or
319	319	292 (b) the division has not issued a registration within sixty days after the application for the
320	320	293registration was filed. 16 of 18
321	321	294 6. A request for a hearing may not be made more than fifteen days after the department
322	322	295has mailed a written notice to the applicant that the application has been denied and stating in
323	323	296substance the division findings supporting denial of the application.
324	324	297 7. Notwithstanding the prior approval requirement of subsection 1 of this section, a
325	325	298consumer litigation funding company or commercial litigation financier that registered with the
326	326	299division between the effective date of this article or when the division has made applications
327	327	300available to the public, whichever is later, and one hundred eighty days thereafter may engage in
328	328	301consumer or commercial litigation funding while the registration is pending approval with the
329	329	302division. All funding and financing agreements entered into prior to the effective date of this
330	330	303Chapter are not subject to the terms of this Chapter.
331	331	304 8. No consumer litigation funding company or commercial litigation financier may use
332	332	305any form of consumer litigation funding or commercial litigation funding contract in this state
333	333	306unless it has been filed with the division in accordance with the filing procedures set forth by the
334	334	307commissioner of the division. Such procedures shall designate a reasonable timeframe for the
335	335	308state to raise objections to any filed form.
336	336	309 9. The commissioner of the division is hereby authorized to adopt rules and regulations
337	337	310to implement the provisions of this section as needed.
338	338	311 Section 10. 1. Each consumer litigation funding company and commercial litigation
339	339	312financier that engages in business in the state shall submit a report to the division no later than
340	340	313the thirty-first of January of each year specifying:
341	341	314 (a) number of litigation fundings by the company or financier; 17 of 18
342	342	315 (b) summation of funded amounts in dollar figure; and
343	343	316 (c) annual percentage charged to each consumer or commercial funding recipient where
344	344	317repayment was made.
345	345	318 2. The division shall make such information available to the public, in a manner which
346	346	319maintains the confidentiality of the name of each company, financier, customer, and consumer,
347	347	320no later than ninety days after the reports are submitted.
348	348	321 Section 11. A commercial litigation financier may not enter into a commercial litigation
349	349	322financing agreement directly or indirectly with a foreign entity of concern, or a foreign country
350	350	323or person of concern.
351	351	324 Section 12. A party or an attorney or law firm for a party shall not disclose or share any
352	352	325documents or information subject to a court order to seal or protect that is received in the course
353	353	326of the civil proceeding with a commercial litigation financier.
354	354	327 Section 13. A commercial litigation financier may not make any decision, have any
355	355	328influence, or direct the plaintiff or the plaintiff's attorney with respect to the conduct of the
356	356	329underlying civil proceeding or any settlement or resolution of the civil proceeding, or make any
357	357	330decision with respect to the conduct of the underlying civil proceeding or any settlement or
358	358	331resolution of the civil proceeding. The right to make these decisions remains solely with the
359	359	332plaintiff and the plaintiff's attorney in the civil proceeding.
360	360	333 Section 14. 1. A party or his or her counsel shall, without awaiting a discovery request,
361	361	334provide to the other parties, and each insurer that has a duty to defend another party in the civil
362	362	335proceeding, any agreement under which any commercial litigation financier, other than an 18 of 18
363	363	336attorney permitted to charge a contingent fee representing a party, has a right to receive
364	364	337compensation that is contingent in any respect on the outcome of the legal claim.
365	365	338 2. Commercial litigation financing agreements shall be admissible at trial.
366	366	339 3. A plaintiff or the plaintiff’s attorney shall provide the agreement required by
367	367	340subsection 1. of this section within a reasonable time after the date on which the commercial
368	368	341litigation financing agreement was executed.
369	369	342 Section 15. If any provision of this Chapter is, for any reason, declared unconstitutional
370	370	343or invalid, in whole or in part, by any court of competent jurisdiction, such portion shall be
371	371	344deemed severable, and such unconstitutionality or invalidity shall not affect the validity of the
372	372	345remaining portions of this Chapter, which remaining portions shall continue in full force and
373	373	346effect.
374	374	347 Section 16. The division of banks shall have authority to promulgate rules necessary to
375	375	348effectuate the purposes of this Chapter.
376	376	349 Section 17. This Act shall take effect 90 days after the Governor’s signature; provided,
377	377	350however, it shall not apply or in any way affect or invalidate any consumer or commercial
378	378	351litigation funding previously effectuated prior to the effective date of this Act.