The proposed bill would update current statutes by introducing new consumer protection measures and disclosure requirements for litigation financing agreements. Specifically, it would mandate that all parties involved in such agreements disclose their existence and the identity of the litigation financier to other parties in the action. Additionally, the bill would prohibit litigation financiers from influencing litigation strategy, choice of counsel, or expert witnesses, ensuring that control remains with the named party and their legal representation. The bill also requires courts to consider potential conflicts of interest in class actions and multidistrict litigation arising from these financing arrangements.

Moreover, the bill would amend the definition of "litigation financing agreement" by removing certain exemptions, particularly those related to nonprofit organizations seeking relief beyond compensatory damages of $100,000. It would classify violations of the new requirements as unlawful practices under the Arizona Consumer Fraud Act, allowing for enforcement by the Attorney General. Any litigation financing agreement entered into in violation of the law would be deemed voidable. The bill is set to take effect on January 1, 2026, and will apply to all civil actions initiated on or after that date.