The California Financing Law generally regulates the business of finance lenders and brokers and prohibits any person from engaging in those businesses without obtaining a license from the Commissioner of Financial Protection and Innovation. The law also imposes various requirements on licensees who offer or sell commercial loans, as defined.
This bill would prohibit a person from engaging in the business of lawsuit financing, as defined, without obtaining a license from the commissioner, and would generally regulate the business of lawsuit financiers, as specified. The bill would require a licensee who is a lawsuit financier, as defined, to maintain a surety bond, as prescribed. The bill would include lawsuit financing in the definition of "commercial loan." The bill would make willful violations of the California Financing Law by a licensee who is a lawsuit financier subject to a civil penalty, as specified.

Statutes affected:
AB 743: 14950 FIN
02/18/25 - Introduced: 14950 FIN
03/24/25 - Amended Assembly: 22007 FIN, 22007 FIN, 22112 FIN, 22112 FIN, 22502 FIN, 22502 FIN, 22753 FIN, 22753 FIN, 22780 FIN, 22780 FIN, 14950 FIN
05/05/25 - Amended Assembly: 22007 FIN, 22101 FIN, 22101 FIN, 22101.5 FIN, 22101.5 FIN, 22102 FIN, 22102 FIN, 22103 FIN, 22103 FIN, 22104 FIN, 22104 FIN, 22106 FIN, 22106 FIN, 22107 FIN, 22107 FIN, 22109 FIN, 22109 FIN, 22112 FIN, 22151 FIN, 22151 FIN, 22152 FIN, 22152 FIN, 22153 FIN, 22153 FIN, 22156 FIN, 22156 FIN, 22157 FIN, 22157 FIN, 22159 FIN, 22159 FIN, 22162 FIN, 22162 FIN, 22502 FIN, 22753 FIN, 22780 FIN