MN HF2677

Creates new regulatory framework for consumer litigation funding companies and commercial litigation financiers, requiring registration with the Minnesota Department of Commerce and annual reporting on funded lawsuits and charges

Mandates consumer protections including 10-business-day rescission rights, plain-language contracts with 12-point bold font disclosures, prohibition on prepayment penalties, and requirement that repayment amounts be predetermined time-based rather than percentage-of-recovery

Prohibits referral fees between litigation funding companies and attorneys, law firms, or healthcare providers, and bars attorneys from having financial interests in funding companies serving their clients

Requires automatic disclosure of litigation financing agreements to all parties in civil proceedings and makes agreements discoverable, while presuming them inadmissible as evidence unless rebutted

Bans foreign entities of concern (including those on OFAC sanctions lists or designated foreign terrorist organizations) from participating in commercial litigation financing, and authorizes civil penalties for willful violations enforceable by the Attorney General