IA SF586

Creates the "Third-Party Litigation Funding Transparency Act" establishing state regulation of consumer litigation funding companies and commercial litigation financiers, requiring registration with the Iowa Secretary of State before conducting business

Mandates detailed disclosure requirements for consumer litigation funding contracts, including funded amounts, charges, payment schedules, and a 10-business-day cancellation period with full refund of disbursed funds

Prohibits litigation funding companies from paying referral fees to attorneys or healthcare providers, making decisions about legal claims, advertising false information, or entering agreements with foreign entities of concern

Requires consumers to disclose within 30 days upon written request whether they have entered into a litigation funding contract, and presumes such contracts are discoverable in civil proceedings

Imposes penalties of up to $100,000 per willful violation, with violating companies forfeiting their right to recover funded amounts and charges in that case; applies to agreements effectuated on or after July 1, 2025