The "Third-Party Litigation Financing Consumer Protection Act" introduced in this bill seeks to regulate the practice of third-party litigation financing in Rhode Island. The bill defines key terms and establishes that litigation financiers must be registered in the state, post a $50,000 surety bond, and adhere to certain practices, such as not offering legal advice, not referring consumers to specific legal or medical professionals, and not attempting to secure waivers of consumer rights. It also requires that litigation financing contracts contain specific disclosures in bold font and that these contracts be disclosed to all parties involved in the litigation. The bill prohibits legal representatives and medical providers from having a financial interest in litigation financing and from receiving referral fees from financers.

Furthermore, the bill imposes reporting requirements on litigation financiers, who must provide detailed information about their business operations and the transactions they engage in, including the amounts and sources of payments received from legal proceedings. The secretary of state is responsible for compiling an annual report with this information to be shared with the house and senate judiciary committees, though the report will remain confidential and not subject to public records laws. The bill also addresses class action lawsuits, requiring disclosure of any relationships between class attorneys and litigation financiers. Commercial litigation financing is exempt from these regulations unless it arises from personal injury claims. Violations of the chapter will render the financing contract unenforceable, and the act will be effective upon passage.