LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 355 SLS 24RS 452
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 1, 2024 12:53 PM Author: STINE
Dept./Agy.: Attorney General
Subject: Regulation of Litigation Funding by a Foreign Third Party Analyst: Daniel Druilhet
CONTRACTS EN SEE FISC NOTE GF EX Page 1 of 2
Provides for regulation of litigation funding by a third party that is a foreign person, state, or wealth fund. (8/1/24)
Proposed law establishes rules on limits on foreign third-party litigation funding; requires certain disclosures in writing by third party
litigation funders to the attorney general (AG), in any civil action in which it has provided funds (sourced by a foreign person, state, or
sovereign wealth fund) to defray expenses or the financial impact of a negative judgment; mandates the AG to produce a copy of any
agreement creating a contingent right relative to proposed law; provides time limits applicable to parties who enter into an agreement and
foreign third-party litigation funders in providing disclosure, certification, and litigation contracts; mandates disclosures be made under
penalty of perjury; makes it unlawful for third-party litigation funders to knowingly enter into an agreement creating a right for anyone
other than the named parties, counsel, or law firm of record, or receive or make payments contingent on the outcome of civil action
involving the same counsel, the terms of which are satisfied by funds sourced from a foreign state or foreign sovereign wealth fund, or be
assigned rights or direct or make any decisions regarding the course of any civil action in which it has provided funding; provides that
agreements in violation of proposed law are absolutely null and deceptive trade practices; requires the AG to report once, annually, to the
Senate President and House Speaker describing foreign involvement in litigation financing agreements in years prior; effective 8/01/24.
EXPENDITURES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2024-25 2025-26 2026-27 2027-28 2028-29 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Annual Total
EXPENDITURE EXPLANATION
Proposed law may result in an indeterminable increase in SGF expenditures in the Department of Public Safety & Corrections - Corrections
Services (DPS&C-CS) and in the Louisiana Department of Justice (Attorney General).
Department of Public Safety & Corrections - Corrections Services
Proposed law may result in an indeterminable increase in SGF expenditures in the DPS&C-CS, to the extent that third party litigation
funders are convicted of perjury for failure to make accurate disclosures of the source of litigation funding sourced from either a foreign
person, foreign state, or sovereign wealth fund. Proposed law assesses a penalty of perjury for foreign third-party litigation funders who
provide certification of inaccurate or incomplete disclosures to the attorney general related to the the source of its litigation funding. The
exact fiscal impact of the passage of this legislation is indeterminable, since it is not known how many people will be convicted, nor the
length of the sentences assessed with those convictions as a result of its potential enactment.
For informational purposes, the penalty assessed for conviction of perjury when committed in any civil action is imprisonment at hard
labor for no more than 5 years, or a fine of no more than $10,000, or both.
CONTINUED ON PAGE 2
REVENUE EXPLANATION
Proposed law may result in an indeterminable increase in local revenues as a result of potential fines for perjury related to third-party
litigation funders providing certification of inaccurate or incomplete disclosures to the attorney general related to the source of its litigation
funding. The exact fiscal impact of the passage of this legislation on local revenue is indeterminable because the fines that would be
imposed on those convicted are optional, and the amount of the fines, if imposed, may vary. The potential revenue will accrue to the local
governing authority.
Proposed law may result in an indeterminable increase in SGR in the Office of the Attorney General, as it allows the Attorney General to
impose fines on those in violation of the law. The exact fiscal impact of the passage of this legislation on SGR is indeterminable, as the
authority provided to the Attorney General to impose fines is optional, and the amount of the fines, if imposed may vary.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer
 LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 355 SLS 24RS 452
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 1, 2024 12:53 PM Author: STINE
Dept./Agy.: Attorney General
Subject: Regulation of Litigation Funding by a Foreign Third Party Analyst: Daniel Druilhet
CONTINUED EXPLANATION from page one: Page 2 of 2
[CONTINUED FROM PAGE 1]
For illustrative purposes, SGF expenditures will increase by $107.60 per offender per day to the extent that an offender is convicted,
sentenced, and then subsequently housed in a state facility or $26.39 per offender per day for an offender housed in a local facility.
Corrections Services reports that impacts on offender populations are anticipated to affect the number of offenders held in local facilities.
Corrections Services reports that in managing its offender population, it seeks to fill all beds in state facilities first, then assigns overflow
offenders to local facilities.
Attorney General
Proposed law may result in an indeterminable increase in SGF expenditures in the Office of the Attorney General, to the extent that the
agency enforces compliance, imposes fines, prohibits third-party litigation funders from operating in the state, or imposes any other
applicable sanctions for violation of the law. The exact fiscal impact to the Office of the Attorney General is indeterminable, as the
proposed legislation provides the option to the attorney general to take enforcement measures, and it is not know the number of instances
in which the Attorney General will take enforcement measures or the associated increased workload.
Proposed law also requires the attorney general to submit an annual report to the President of the Senate and the Speaker of the House of
Representatives describing foreign involvement in litigation financing agreements in each preceding calendar year. The LFO presumes that
any increased workload associated with completion of this annual report can be absorbed using existing staff and resources within the
Office of the Attorney General.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Patrice Thomas
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Deputy Fiscal Officer