The bill introduces new sections 1357.01 to 1357.10 of the Ohio Revised Code, establishing comprehensive regulations for non-recourse litigation funding and commercial litigation financing agreements. It defines key terms such as "consumer legal funding agreement," "commercial litigation financier," and "charges." A significant requirement is that consumer legal funding companies must register with the attorney general before operating in Ohio. The bill outlines specific requirements for these agreements, including necessary disclosures, cancellation rights, and the involvement of attorneys. It also emphasizes consumer protection by prohibiting unfair practices and allowing consumers to seek legal recourse for violations.

Additionally, the bill repeals section 1349.55 of the Revised Code, which previously governed aspects of litigation funding, indicating a shift towards more stringent regulations. Key provisions include prohibiting funding companies from paying referral fees to attorneys or healthcare providers, ensuring timely provision of funding agreements to consumers, and preventing companies from influencing legal claims or settlements. The bill also establishes that any consumer legal funding agreement without the required attorney acknowledgment is unenforceable and mandates attorneys to disclose these agreements to the attorney general upon resolution of legal claims. Furthermore, it prohibits foreign entities from entering into funding agreements, reinforcing the state's commitment to protecting due process rights.

Statutes affected:
As Introduced: 1349.55
As Reported By House Committee: 1349.55
As Passed By House: 1349.55
As Reported By Senate Committee: 1349.55
As Passed By Senate: 1349.55
As Enrolled: 1349.55