Loading chat...
IN SB0373
Bill
AI Summary
SB 373 Summary
-
Establishes a regulatory framework for "civil justice funding" allowing companies to provide money to plaintiffs in exchange for a contingent right to receive a portion of settlement, judgment, award, or verdict proceeds.
-
Requires civil justice funding companies to register with the attorney general and file all contracts; initial registration fee is $1,500 with $500 biennial renewal fees.
-
Mandates contracts include a 5-business-day rescission period, consumer initials on each page, and specific disclosures in 12-point bold font regarding funded amounts, charges, and nonrecourse nature of the transaction.
-
Prohibits funding companies from paying referral fees to attorneys or medical providers, making referrals to specific attorneys, interfering with legal claim decisions, or funding consumers with prior unsatisfied funding agreements without consent.
-
Charges must be predetermined based on time intervals rather than recovery percentages; intentional violations limit company recovery to only the funded amount without additional charges.
-
Effective July 1, 2015; excludes funding agreements entered before that date from the requirements.
Legislative Description
Civil proceeding advance payment transactions. Defines a "civil proceeding advance payment transaction", or "CPAP transaction", as a nonrecourse transaction in which a person (CPAP provider) provides to a consumer claimant in a civil proceeding a funded amount, the repayment of which is: (1) required only if the consumer claimant prevails in the civil proceeding; and (2) sourced from the proceeds of the civil proceeding. Requires a CPAP provider to register with the department of financial institutions (department). Sets forth requirements, including disclosure requirements, for a contract (CPAP contract) entered into by a CPAP provider and a consumer claimant. Sets forth
Last Action
House Advisors appointed: Eberhart, Washburne and DeLaney
4/21/2015