This bill mandates the disclosure of third-party litigation funding agreements in civil and administrative actions, requiring parties or their attorneys to provide such agreements without waiting for a discovery request. The disclosure must include all relevant correspondence and documents at the time of filing an initial pleading or when the agreement is made. Amendments to these agreements must also be disclosed promptly. The bill establishes that litigation funders have a fiduciary duty to the parties they fund, ensuring that funders act in the best interests of those parties. Additionally, it outlines specific prohibited actions for litigation funders, such as influencing legal decisions or providing legal advice, and sets limits on the financial compensation they can receive from the outcomes of the litigation.

Furthermore, the bill stipulates that any litigation funding agreement is unenforceable if the funder violates its fiduciary duty or engages in prohibited conduct. It also allows courts, executive branch agencies, or tribunals to impose sanctions for noncompliance with the bill's provisions. Notably, the bill does not apply to pre-settlement funding intended for personal expenses unrelated to litigation costs. The legislation aims to enhance transparency in litigation funding and protect the interests of parties involved in civil and administrative actions.