This bill proposes the establishment of a new chapter in Title 13 of the North Dakota Century Code to regulate litigation financing. It introduces key definitions such as "litigation financer," "litigation financing," and "consumer," and mandates that all entities involved in litigation financing obtain a license from the commissioner of financial institutions. The licensing process includes specific application requirements, fee payments, and the maintenance of a surety bond and minimum net worth to ensure financial responsibility. The bill also outlines conditions for license revocation or suspension, including non-payment of fees and misconduct by officers or employees, aiming to enhance consumer protection and accountability in the litigation financing industry.

Additionally, the bill grants the commissioner the authority to conduct investigations and examinations to ensure compliance with financial regulations, including the power to issue subpoenas and access relevant documents. It establishes penalties for violations, which can include class C felonies and civil money penalties, and emphasizes the confidentiality of information shared with the nationwide multistate licensing system. The legislation also includes specific prohibitions for litigation financers regarding commissions and fees, mandates full disclosure in financing contracts, and allows consumers the right to cancel contracts within five business days. Overall, the bill seeks to create a structured legal framework for litigation financing in North Dakota, enhancing transparency and protecting consumers.