The bill, known as the "Litigation Financing Disclosure Act," introduces regulations for third-party litigation financing, particularly focusing on foreign entities involved in such funding. It establishes definitions for key terms such as "foreign entity," "litigation financer," and "litigation financing," and outlines the obligations of litigation funders to disclose their involvement in civil actions. Specifically, if a foreign third-party litigation funder is involved, they must provide written disclosures to the attorney general regarding the identity and citizenship of any foreign entities that have a financial stake in the outcome of the litigation. The bill also prohibits these funders from influencing the conduct of the civil proceedings or making decisions related to the litigation.

Additionally, the proposed law ensures that the existence of litigation financing agreements is subject to discovery in civil actions, while also protecting nonprofit legal organizations that represent clients pro bono from the requirements of this law. The attorney general is empowered to enforce compliance and report annually on foreign involvement in litigation financing agreements. The bill aims to enhance transparency in litigation financing and safeguard the integrity of civil proceedings, with an effective date set for August 1, 2024.