Senate Bill 1215 Summary

• Adds Chapter 28 to Arizona Revised Statutes governing litigation financing agreements, defined as agreements creating contingent payment rights tied to the outcome of civil actions or administrative proceedings.

• Prohibits litigation financiers from directing litigation decisions, selecting counsel, choosing experts, or developing strategy; named parties and counsel of record retain all control and decision-making authority.

• Requires written disclosure and separate acknowledgment from borrowers before entering agreements, including the specific amount of commissions or referral fees paid to legal counsel, law firms, or health care providers for referrals.

• Bars litigation financiers from providing funding directly or indirectly financed by foreign entities of concern, as defined by federal regulations and designations by the federal government or Governor.

• Makes litigation financing agreements entered into in violation of these provisions voidable and constitutes an unlawful practice; only the Attorney General or parties to the litigation may challenge such agreements.

• Effective December 31, 2025, and applies to civil actions, administrative proceedings, claims, or causes of action commenced on or after the effective date.