The bill, known as the "Litigation Financing Disclosure Act," introduces regulations for third-party litigation funding, particularly focusing on foreign entities involved in such financing. It establishes definitions for key terms such as "foreign entity," "litigation financer," and "litigation financing contract." The legislation mandates that any foreign third-party litigation funder must disclose specific information to the attorney general, including the identity of foreign entities involved in funding agreements and any proprietary information that may affect national security interests. Additionally, it prohibits foreign funders from influencing the conduct of civil proceedings or making decisions regarding litigation strategy, ensuring that these decisions remain solely with the party and their attorney.

The bill also clarifies that the existence of litigation financing contracts is subject to discovery in civil actions related to personal injuries. Notably, it exempts nonprofit legal organizations funded by private donors from these regulations, ensuring they are not required to disclose their funding sources or have their awards affected by the new law. The proposed law will take effect on August 1, 2024, and aims to enhance transparency and accountability in litigation financing while protecting the rights of parties involved in civil actions.