The bill amends Title 9 of the General Laws by adding a new chapter, Chapter 3.1, which focuses on "Litigation Lending Agreements" (LLAs). It establishes that litigation financing contracts, where companies advance money to litigants in exchange for repayment from litigation proceeds, often carry effective annual interest rates that exceed state usury limits, with some rates surpassing one hundred percent. The General Assembly finds these rates detrimental to the welfare of citizens and aims to ensure that such agreements conform to state laws governing usurious loans.

Under the new provisions, any payments made by a litigant under an LLA that exceed the amount received will be considered interest on loans, thus subjecting them to the regulations outlined in chapter 26 of title 6 ("interest and usury"). This classification applies regardless of how the LLA is characterized (e.g., as a "loan," "advance," "investment," or "assignment of proceeds") or the terminology used for repayment (e.g., "interest," "use fees," or other terms). The act is set to take effect upon passage.