The bill amends K.S.A. 2024 Supp. 60-226 to establish regulations for third-party litigation funding agreements in civil procedure. It requires parties to disclose specific information about these agreements to the court and other involved parties within 30 days of initiating legal action or executing the agreement. This disclosure includes details about the contracting parties, any control or approval rights granted to the funder, relationships with adverse parties, and the nature of the financial interest. The bill also specifies that information regarding these funding agreements is not admissible in court and limits the discovery and disclosure requirements, particularly protecting nonprofit organizations from revealing their members or donors.

Additionally, the bill introduces a definition for "reasonable interest," capping it at 11.1% of the principal amount in legal claims, and defines "third-party litigation funding agreement" to clarify the nature of such agreements. It includes a severability clause for subsection (b)(3)(B) to ensure that if any part is found unconstitutional, the remaining provisions remain enforceable. The bill also repeals K.S.A. 2024 Supp. 60-226 and states that it will take effect upon publication in the statute book.

Statutes affected:
As introduced: 60-226
Sub: 60-226
As Amended by House Committee: 60-226
Enrolled: 60-226