The Litigation Financing Transparency and Consumer Protection Act aims to regulate the practice of litigation financing by requiring the registration of litigation financiers and ensuring public transparency regarding individuals involved in these activities. The bill establishes consumer protections, mandates minimum standards and disclosures for litigation financing contracts, and requires that any litigation financing transaction and contract be disclosed in civil actions. Additionally, it creates certain exemptions and grants the Secretary of State the authority to establish administrative rules related to the implementation of the act.
This legislation emphasizes the importance of transparency and consumer rights in litigation financing, aiming to protect individuals who may engage with litigation financiers. By setting clear standards and disclosure requirements, the act seeks to foster a more informed and equitable environment for those involved in legal proceedings. The bill also includes provisions for a delayed effective date and applicability, allowing for a smooth transition into the new regulatory framework.