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 proposed law 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 litigation funders from influencing the conduct of civil proceedings or making decisions regarding legal strategies, ensuring that such authority remains solely with the parties involved and their attorneys.

The bill also outlines the consequences for violations, declaring any agreements that contravene its provisions as null and void, and categorizing such violations as deceptive trade practices. The attorney general is empowered to enforce compliance and report annually on foreign involvement in litigation financing. Notably, the law exempts nonprofit legal organizations funded by private donors from its requirements, ensuring they are not compelled to disclose donor information or have their operations affected by the new regulations. The provisions of the bill are set to take effect on August 1, 2024.