The "Litigation Financing Transparency, National Security, and Consumer Protection Act" introduces a new chapter to Title 48 of the Idaho Code, establishing comprehensive regulations for litigation financing. Key provisions require litigation financiers to register with the Secretary of State and prohibit funding from foreign adversaries. The bill defines essential terms such as "litigation financier" and "foreign adversary," and outlines the obligations of litigation financiers, including restrictions on commissions and mandates for clear disclosures in financing contracts. It also ensures that litigation financing contracts cannot be amended without the consent of all parties involved and must be disclosed to relevant parties and the court.

Additionally, the bill provides specific protections for consumers, including exemptions for certain nonprofit entities that offer pro bono legal representation, which cannot charge interest or fees beyond incurred attorney's fees and litigation expenses. It imposes a fiduciary duty on litigation financiers to act in the best interests of class members in class action lawsuits and mandates that any foreign persons involved in litigation financing must register and disclose their citizenship or country of incorporation. Violations of these regulations will render financing contracts unenforceable, and the prevailing party in related litigation can recover costs and attorney's fees. The act is set to take effect on July 1, 2026, and includes a severability clause to maintain the validity of remaining provisions if any part is declared invalid.