The bill amends K.S.A. 2024 Supp. 60-226 to regulate third-party litigation funding agreements by establishing specific requirements for discovery and disclosure in civil litigation. It mandates that parties submit these agreements for in camera review within 30 days of initiating a legal action or executing the agreement, whichever occurs later. Additionally, parties must disclose key information about the funding agreements to all involved parties, including the identities of the contracting parties, any control or approval rights granted to the funder, and any relationships between the funder and the opposing party. The bill also stipulates that details regarding these funding agreements are not admissible as evidence during trial.

Moreover, 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 exempts nonprofit organizations from disclosing their members or donors in relation to these funding agreements, while maintaining that existing civil procedure rules apply unless explicitly modified. The bill includes a severability clause to ensure that if any part of the legislation is found unconstitutional, the remaining provisions will still be enforceable. It also repeals K.S.A. 2024 Supp. 60-226 and states that the act 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