Legislation

* § 899-eee. Prohibitions and charge limitations. 1. Consumer
litigation funding companies shall be prohibited from:

(a) paying or offering to pay commissions, referral fees, or other
forms of consideration to any attorney, law firm, medical provider,
chiropractor or physical therapist or any of their employees for
referring a consumer to the company;

(b) accepting any commissions, referral fees, rebates or other forms
of consideration from an attorney, law firm, medical provider,
chiropractor or physical therapist or any of their employees;

(c) intentionally advertising materially false or misleading
information regarding its products or services;

(d) referring, in furtherance of an initial legal funding, a customer
or potential customer to a specific attorney, law firm, medical
provider, chiropractor or physical therapist or any of their employees;
provided, however, if a customer needs legal representation, the company
may refer the customer to a local or state bar association referral
service;

(e) knowingly providing funding to a consumer who has previously
assigned and/or sold a portion of the consumer's right to proceeds from
their legal claim without first making payment to and/or purchasing a
prior unsatisfied consumer litigation funding company's entire funded
amount and contracted charges, unless a lesser amount is otherwise
agreed to in writing by the consumer litigation funding companies,
except that multiple companies may agree to contemporaneously provide
funding to a consumer provided that the consumer and the consumer's
attorney consent to the arrangement in writing;

(f) receiving any right to, or making, any decisions with respect to
the conduct of the underlying legal claim or any settlement or
resolution thereof. The right to make such decisions shall remain solely
with the consumer and the attorney in the legal claim;

(g) attempting to obtain a waiver of any remedy or right by the
consumer, including but not limited to the right to trial by jury; and

(h) knowingly paying or offering to pay for court costs, filing fees
or attorney's fees either during or after the resolution of the legal
claim, using funds from the consumer litigation funding transaction.

2. An attorney or law firm retained by the consumer in the legal claim
shall not have a financial interest in the consumer litigation funding
company offering consumer litigation funding to that consumer.

3. Any attorney who has referred the consumer to their retained
attorney shall not have a financial interest in the consumer litigation
funding company offering consumer litigation funding to that consumer.

4. The attorney may only disclose privileged information to the
consumer litigation funding company with the written consent of the
consumer.

5. Provided the consumer's attorney or the consumer provides the
consumer litigation funding company with an attestation disclosing the
final amount of the gross proceeds from the claim, the maximum allowable
charges shall not exceed twenty-five percent of the gross proceeds from
the applicable legal claim, regardless of the funded amount provided for
the relevant claim.

* NB Effective June 17, 2026