The "Litigation Investment Safeguards and Transparency Act" aims to regulate litigation financing in Florida by introducing a new chapter that outlines definitions and provisions related to litigation financing agreements. Key provisions include requirements for courts to consider potential conflicts of interest, prohibitions on litigation financiers making decisions about the legal actions they fund, and mandates for parties to disclose foreign funding relationships within specified timeframes. The bill also establishes penalties for non-compliance and declares that certain litigation financing agreements may be void and unenforceable under specific circumstances.

Furthermore, the bill emphasizes transparency by requiring parties to file notices identifying foreign funders and their ownership interests in litigation financing agreements. It prohibits foreign funders from using domestic entities to bypass disclosure requirements and restricts the sharing of proprietary information with non-parties. Violations of the new regulations will be classified as deceptive and unfair trade practices, allowing for legal action under consumer protection laws. The act is set to take effect on July 1, 2026, with specific disclosure requirements for ongoing proceedings and a severability clause to maintain the enforceability of remaining provisions if any are deemed invalid.