New Hampshire 2025 Regular Session

New Hampshire House Bill HB733 Compare Versions

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1	1	HB 733-FN - AS AMENDED BY THE HOUSE
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5	5	13Mar2025... 0726h
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7	7	2025 SESSION
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9	9	25-0740
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11	11	07/11
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15	15	HOUSE BILL733-FN
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19	19	AN ACTrelative to reporting requirements for persons or entities financing lawsuits.
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23	23	SPONSORS:Rep. Cole, Hills. 26; Rep. Ouellet, Coos 3; Rep. Kofalt, Hills. 32
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27	27	COMMITTEE:Judiciary
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35	35	AMENDED ANALYSIS
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39	39	This bill regulates consumer litigation finance agreements and makes violations of the chapter a violation of the New Hampshire consumer protection act.
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47	47	Explanation:Matter added to current law appears in bold italics.
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49	49	Matter removed from current law appears [in brackets and struckthrough.]
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51	51	Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
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53	53	13Mar2025... 0726h25-0740
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55	55	07/11
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59	59	STATE OF NEW HAMPSHIRE
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63	63	In the Year of Our Lord Two Thousand Twenty Five
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67	67	AN ACTrelative to reporting requirements for persons or entities financing lawsuits.
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71	71	Be it Enacted by the Senate and House of Representatives in General Court convened:
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75	75	1 Purpose and Findings. The purpose of this act is to promote consumer protections related to commercial litigation funding transactions. This act establishes requirements regarding disclosure, funding company and attorney responsibilities and limitations, violations, and other items.
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77	77	2 New Chapter; New Hampshire Third-Party Litigation Funding Transparency Act. Amend RSA by inserting after chapter 294-E the following new chapter:
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79	79	CHAPTER 294-F
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81	81	NEW HAMPSHIRE THIRD-PARTY LITIGATION FUNDING TRANSPARENCY ACT
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83	83	294-F:1 Short Title. This chapter shall be known, and may be cited as, the "Third-Party Litigation Funding Transparency Act."
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85	85	294-F:2 Definitions. In this chapter:
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87	87	I. "Commercial litigation financier" means a person in the business of entering into commercial litigation financing agreements with claimants or with lawyers or law firms asserting legal claims on behalf of claimants. The term commercial litigation financier does not include a nonprofit organization exempt from federal income tax under 501(c)(3) of the United States Internal Revenue Code or its funders if the nonprofit organization represents the claimant on a pro bono basis, which may include an award of costs or attorney fees to the nonprofit organization or a related attorney.
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89	89	II. "Commercial litigation financing agreement" means, with respect to any civil action or group of civil actions, a written agreement:
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91	91	(a) Whereby a third party agrees to provide funds to one of the named parties or any law firm affiliated with the action or group of civil actions, and
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93	93	(b) Which creates a direct or collateralized interest in the proceeds of a civil action or group of civil actions, by settlement, verdict, judgment, or otherwise, and whose interest is based in whole or part on a funding-based obligation to the action or group of actions or the appearing counsel or any contractual co-counsel or the law firm(s) of the counsel or co-counsel executed with:
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95	95	(1) Any attorney representing a party;
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97	97	(2) Any co-counsel in the litigation with a contingent fee interest in the representation of that party; or
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99	99	(3) Any third-party who has a collateral-based interest in the contingency fees of the counsel or co-counsel firm related in whole or part to the fees derived from representing that party.
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101	101	(c) "Commercial litigation financing agreement" includes any contract, including any option, forward contract, futures contract, short position, swap, or similar contract, or other agreement that is substantially similar to a litigation financing agreement.
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103	103	(d) "Commercial litigation financing agreement" does not include:
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105	105	(1) A consumer legal funding agreement;
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107	107	(2) An agreement by an attorney or law firm to provide legal services on a contingency fee basis to the claimant or to advance the claimant's legal costs in accordance with the American Bar Association's Model Rules of Professional Conduct;
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109	109	(3) A health insurer, medical provider, or assignee that has paid, is obligated to pay, or is owed any sums for a person’s health care under the terms of a health insurance plan or agreement;
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111	111	(4) A financial institution providing loans to the claimant or the claimant’s attorney or law firm when repayment is not contingent upon the outcome of the legal claim or on the outcome of any matter within a portfolio that includes the legal claim and involves the same attorney or law firm or affiliated attorney or law firm; or
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113	113	(5) A person with a preexisting contractual obligation to indemnify or defend a party to a legal claim.
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115	115	III. "Consumer" means a natural person or estate for a decedent with a legal claim.
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117	117	IV. "Consumer legal funding" means a nonrecourse transaction in which a consumer legal funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of a settlement, judgment, award, or verdict obtained in the consumer’s legal claim.
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119	119	V. "Foreign country or person of concern" means a foreign government or person listed in section 15 CFR 791.4 of the code of federal regulations.
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121	121	VI. "Foreign entity of concern" means an entity that:
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123	123	(a) Is organized or incorporated in a foreign country of concern;
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125	125	(b) Is owned or controlled by the government, a political subdivision, or a political party of a foreign country of concern;
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127	127	(c) Has a principal place of business in a foreign country of concern; or
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129	129	(d) Is owned, organized, or controlled by, affiliated with, or acting on behalf of an individual or entity that is or has been:
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131	131	(1) On a sanctions list maintained by the Office of Foreign Assets Control, including the following:
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133	133	(A) Specially Designated Nationals and Blocked Persons List ("SDN List");
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135	135	(B) Foreign Sanctions Evaders List;
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137	137	(C) Non-SDN Iran Sanctions Act List;
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139	139	(D) Sectoral Sanctions Identifications List; or
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141	141	(E) List of Foreign Financial Institutions Subject to Correspondent Account and Payable-Through Account Sanctions; or
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143	143	(2) Designated by the United States Secretary of State as a foreign terrorist organization.
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145	145	VII. "Legal claim" means a civil claim or cause of action.
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147	147	294-F:3 Prohibitions Related to Commercial Litigation Funding. A commercial litigation financier shall not enter into a commercial litigation financing agreement directly or indirectly with a foreign entity of concern or a foreign country or person of concern.
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149	149	294-F:4 Commercial Litigation Financing Agreement Disclosure and Discovery.
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151	151	I. Except as otherwise stipulated or ordered by the court, a claimant or the claimant’s attorney shall, without awaiting a discovery request, provide to all parties in a pending civil action any commercial litigation financing agreement at the time a civil action is asserted and any time thereafter that a commercial litigation financing agreement is executed or amended. An insurer that has or may have a duty to defend or indemnify a party to a civil action shall be provided with the commercial litigation financing agreement or any modifications or amendments to the agreement.
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153	153	II. Commercial litigation financing agreements and all participants or parties to such agreements are permissible subjects of discovery in a legal claim.
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155	155	294-F:5 Applicability.
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157	157	I. This chapter shall apply to any commercial litigation financing agreement that is effectuated on or after the effective date of this chapter.
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159	159	II. If any provision of this chapter is, for any reason, declared unconstitutional or invalid, in whole or in part by any court of competent jurisdiction, such portion shall be deemed severable and shall not affect the validity of the remaining portions of this chapter, which shall remain in full force and effect.
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161	161	3 Effective Date. This act shall take effect January 1, 2026.
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165	165	LBA
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167	167	25-0740
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169	169	3/21/25
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173	173	HB 733-FN- FISCAL NOTE
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175	175	AS AMENDED BY THE HOUSE (AMENDMENT #2025-0726h)
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179	179	AN ACTrelative to reporting requirements for persons or entities financing lawsuits.
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183	183	FISCAL IMPACT:
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185	185	The Office of Legislative Budget Assistant states this bill has no fiscal impact on state, county and local expenditures or revenue.
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189	189	AGENCIES CONTACTED:
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191	191	Department of Justice