The proposed bill introduces the "Litigation Financing Transparency, National Security, and Consumer Protection Act" as a new chapter in Title 48 of the Idaho Code. This legislation aims to regulate litigation financing by requiring litigation financiers to register with the Secretary of State and establishing maximum interest rates and limits on recoverable amounts from legal claims. It emphasizes consumer protection by mandating clear disclosures in financing contracts, allowing consumers to cancel contracts within a specified timeframe, and ensuring they are informed of their rights regarding legal claims. The bill also includes provisions for regulatory oversight, penalties for violations, and ongoing disclosure obligations for consumers and their legal representatives.

Additionally, the bill imposes strict restrictions on foreign entities, specifically prohibiting foreign adversaries from participating in litigation financing within the state and requiring disclosure of any affiliations with foreign parties. It clarifies that litigation financing contracts and their participants are discoverable in related legal claims, even if those claims have not yet commenced. The Secretary of State is empowered to oversee compliance and adopt relevant rules, with violations potentially rendering contracts unenforceable. The legislation is set to take effect on July 1, 2026.