The bill establishes comprehensive regulations for non-recourse litigation funding agreements in Ohio by enacting new sections 1357.01 through 1357.10 of the Revised Code and repealing section 1349.55. It defines key terms related to consumer legal funding and commercial litigation financing, such as "consumer," "consumer legal funding agreement," and "commercial litigation financier." The legislation requires consumer legal funding companies to register with the attorney general, ensuring transparency and accountability. It also mandates clear disclosures in funding agreements, including funded amounts, charges, and the consumer's right to cancel within ten business days, while emphasizing consumer protection and adherence to public policy against champerty and maintenance.

Additionally, the bill prohibits consumer legal funding companies from practices like paying referral fees to attorneys and providing misleading information about their services. It establishes that violations of these regulations are considered unfair or deceptive acts, allowing consumers to seek legal remedies. Attorneys are required to disclose any consumer legal funding agreements to the attorney general, who will publish the contents while maintaining consumer confidentiality. The bill also mandates that all commercial litigation financiers register with the attorney general and outlines the necessary registration information, aiming to enhance transparency and protect consumer rights in the legal funding industry.

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