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 to the court within 30 days of initiating a legal action or executing a funding agreement, including the identities of all parties involved, any control or approval rights granted to the funder, and any known relationships between the funder and the opposing party. The bill also ensures that information regarding these funding agreements is not admissible in court and protects nonprofit organizations from disclosing their members or donors. Additionally, it limits the discovery of these agreements to maintain confidentiality and clarifies that existing civil procedure rules remain in effect unless modified by this legislation.

The bill introduces a definition for "reasonable interest," capping it at a total interest rate of 11.1% of the principal, and defines "third-party litigation funding agreement" to include agreements where a non-party pays legal expenses with compensation contingent on the claim's outcome, excluding agreements that only allow recovery of the provided amount plus reasonable interest. It also includes a severability clause for subsection (b)(3)(B) to ensure enforceability of remaining portions if any part is found unconstitutional or invalid. Furthermore, the bill repeals K.S.A. 2024 Supp. 60-226 and states that the act will take effect upon its publication in the statute book.

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