This bill establishes a new chapter in Title 19 RCW concerning litigation finance in Washington State. It introduces definitions for key terms such as "claimant," "third-party litigation funder," and "litigation financing agreement," and outlines the requirements and limitations that third-party funders must adhere to when entering into financing agreements. Notably, the bill mandates that claimants and their attorneys disclose the identity of any third-party funders involved in a legal action, as well as the terms of the financing agreement, to all parties involved in the case. Additionally, it prohibits third-party funders from influencing legal strategies or decisions, sharing proprietary information, and engaging in deceptive practices.

The legislation also emphasizes consumer protection by classifying violations of the chapter as unfair or deceptive acts under the consumer protection act, allowing for statutory damages and other remedies for affected parties. The act is set to take effect on July 1, 2026, and will apply only to litigation financing agreements entered into after this date. Furthermore, it includes a provision ensuring that if any part of the act is found invalid, the remaining sections will still be enforceable.