The bill amends the Kansas Code of Civil Procedure to regulate third-party litigation funding, specifically focusing on the discovery and disclosure of third-party agreements. It introduces provisions that limit inquiries into these agreements to prevent undue prejudice to the involved parties. Notably, any third-party agreement involving contingent compensation must be reported to the judicial council within a specified timeframe, with these reports being confidential and exempt from the open records act. The bill also mandates the establishment of a committee by the judicial council to study these agreements and provide findings and recommendations. Additionally, it repeals the existing section of K.S.A. 2024 Supp. 60-226, indicating a significant overhaul of the current legal framework regarding third-party litigation funding in Kansas.

Moreover, the bill addresses the handling of unsigned legal documents, stating that parties are not required to act on unsigned disclosures or requests until they are signed. If a signature is not provided promptly, the court must strike the document. It also establishes sanctions for improper certification, allowing the court to impose penalties on the signer or represented party for violations without substantial justification. Key terms such as "foreign person," "reasonable interest," and "third-party agreement" are defined for clarity, and a severability clause is included to ensure the enforceability of remaining provisions if any part is deemed unconstitutional. The bill will take effect upon publication in the statute book.

Statutes affected:
As introduced: 60-226