This bill proposes the establishment of a new chapter in Title 13 of the North Dakota Century Code to regulate litigation financing. It defines key terms such as "litigation financer," "consumer," and "litigation financing contract," and mandates that individuals or entities engaging in litigation financing obtain a license from the commissioner of financial institutions. The licensing process requires detailed information about the entity, maintenance of a surety bond, and adherence to minimum net worth requirements. Licensed litigation financers must comply with ongoing regulatory obligations, including timely information submission and annual license renewal, with the commissioner having the authority to suspend or revoke licenses for non-compliance.

The legislation also introduces specific regulations regarding the conduct of litigation financers, including prohibitions on commissions and advertising practices, and mandates comprehensive disclosure requirements for financing contracts. It ensures that consumers retain their rights and that legal representatives disclose any financial interests in litigation financing. The bill enhances the commissioner’s authority to conduct investigations, issue subpoenas, and enforce compliance, with penalties for violations classified as class C felonies or civil money penalties. Additionally, it emphasizes the confidentiality of information shared with the nationwide multistate licensing system, ensuring protection under federal and state laws while allowing for necessary information sharing with regulatory officials.