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 all litigation financers obtain a license from the commissioner of financial institutions, along with a surety bond of at least $50,000 and a minimum net worth of $25,000. The bill outlines the application process, conditions for license renewal and revocation, and grants the commissioner authority to suspend or revoke licenses for non-compliance. It also emphasizes the importance of accurate record-keeping and consumer protection within the litigation financing industry.

Furthermore, the bill introduces specific regulations regarding the conduct of litigation financers, including prohibitions on commissions and advertising practices, and mandates comprehensive disclosure requirements for financing contracts. Legal representatives are prohibited from having financial interests in litigation financing and must disclose any relationships with financers in class action lawsuits. The Department of Financial Institutions is tasked with enforcing these regulations, conducting investigations, and maintaining confidentiality of shared information. Violations of the regulations are classified as class C felonies, with civil penalties of up to $100,000 per occurrence, reinforcing the regulatory framework for financial institutions in North Dakota.