AR SB541

Establishes comprehensive state regulation of civil proceeding advance payment contracts under Arkansas Code § 23-30-101 et seq., effective October 1, 2015, requiring providers to register with the State Securities Department

Limits contract amounts to maximum 17% of the funded amount and prohibits providers from paying referral fees to attorneys, medical providers, and other professionals

Requires detailed disclosures including funded amount, funding date, itemized charges, contract amount, payment schedules, and right of rescission allowing consumer claimants to cancel within 5 days of funding

Mandates attorney acknowledgment in contracts confirming disclosure of all costs, contingency fee basis, proper disbursement procedures, and absence of referral arrangements with the funding provider

Establishes State Securities Department oversight authority including registration requirements, surety bonds up to $50,000, examination powers, and civil penalties up to $10,000 per violation