S.F. No. 3636 Summary

• Requires structured settlement purchase companies to register with the Secretary of State and maintain a $50,000 surety bond, letter of credit, or cash bond effective January 1, 2023.

• Prohibits deceptive practices by transferees and purchase companies, including paying finder's fees, coercing payees, engaging in fraud, and inappropriate contact with payees; violations are deceptive trade practices subject to enforcement and court sanctions.

• Requires transferees to provide payees with detailed disclosure statements at least 10 days before signing, including payment amounts, discounted present value, effective annual interest rate, and gross/net advance amounts in 14-point bold font.

• Mandates court approval of all structured settlement payment transfers based on findings that the transfer is in the payee's best interest, the payee was advised to seek independent professional advice, and the transfer complies with applicable law; payees must appear in person at hearings.

• Appropriates $19,000 in fiscal year 2023 to the Secretary of State for registration purposes, with base funding of $3,000 for fiscal years 2024-2025; effective August 1, 2022 for most provisions and January 1, 2023 for registration requirements.