Substitute Senate Bill No. 1544, known as Special Act No. 25-20, mandates the Banking Commissioner, or their designee, to conduct a study on presettlement legal funding and loans associated with wrongful incarceration awards. The study will focus on consumer complaints against entities regulated under title 36a of the general statutes from July 1, 2020, to June 30, 2025. It will investigate alleged improprieties in presettlement funding, unlicensed small loans related to wrongful incarceration awards, and any consent decrees or enforcement actions taken by the department regarding these issues. Additionally, the study will involve consultations with the Commissioner of Consumer Protection and the Attorney General to recommend legislative changes aimed at enhancing consumer protections for individuals seeking compensation for wrongful incarceration.

The bill also outlines the need for a process to appoint a trustee for individuals who enter into agreements for presettlement funding before receiving their wrongful incarceration awards. The report detailing the findings and recommendations from this study is required to be submitted to the relevant joint standing committees of the General Assembly by January 8, 2026. The bill does not include any deletions from current law but introduces new provisions to improve oversight and consumer protection in the context of presettlement legal funding.