The New Hampshire Third-Party Litigation Funding Transparency Act seeks to regulate commercial litigation financing and lawyer financing agreements by establishing clear definitions for key terms such as "commercial litigation financier," "commercial litigation financing agreement," and "lawyer financing agreement." Notably, the bill clarifies that nonprofit organizations providing pro bono representation are not classified as commercial litigation financiers. It also outlines exclusions for certain agreements, specifically consumer legal funding agreements and contingency fee arrangements by attorneys.

To promote transparency and accountability, the bill imposes several requirements on commercial litigation financiers, including prohibitions against entering agreements with foreign entities of concern and limitations on their influence over litigation decisions. Counsel must provide a sworn statement within 30 days of initiating legal action or executing a financing agreement, disclosing all contracting parties, the nature of the financial interest, and confirming that the claimant understands the agreement's terms. Additionally, any foreign entities involved must be disclosed, and the information regarding these financing agreements will not be admissible as evidence in court. The act is set to take effect on January 1, 2027, and includes a severability clause to ensure the enforceability of remaining provisions if any part is found unconstitutional or invalid.