All Roll Calls
Yes: 121 • No: 1
UtahH.B. 2802026 General SessionHouseWALLET
Third Party Litigation Funding Amendments
Sponsored By: James A. Dunnigan (Republican)
Signed by Governor
BusinessFinancial InstitutionsAttorneysJudicial AdministrationJudicial Operations
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 7 benefits, 0 costs, 0 mixed.
Stronger rules for consumer contracts
Beginning May 6, 2026, consumer funding contracts must be clear, in writing, and complete before you sign. You get 10 business days to cancel by returning the funds as the contract explains. The contract must list the funded amount, itemized one‑time charges, and a schedule showing what is due at six‑month points if paid then. Payments cannot be a percentage of your recovery, and there are no prepayment penalties. The contract must state the funder cannot control your case, that payment comes only from proceeds, and your right to cancel. Providers must file a template contract with the Division before using it. If a funder willfully breaks these rules, they cannot enforce the agreement.
Who gets paid from settlements
Beginning May 6, 2026, you can assign part of your future settlement or award to a funding provider. The provider may place a lien on the proceeds. Only your attorney’s lien and Medicare or other statutory liens tied to the claim are paid before the funder’s lien. This sets who gets paid first from your settlement.
Funders must register with state
Beginning May 6, 2026, consumer funding providers must register with the Division of Consumer Protection. People who regularly fund cases commercially must also register. Applications and yearly renewals follow the Division’s process. The Division sets the application fee and what information is required.
Limits on funder influence, conflicts
Beginning May 6, 2026, a consumer funder cannot pay or accept referral fees with your lawyer or health care provider. The funder cannot refer you to a specific lawyer or provider, except a bar referral service. The funder cannot influence how your case is handled or pay court, filing, or attorney fees with the funding. They cannot ask you to waive rights like a jury trial. A funder also cannot fund you if your lawyer has a financial interest in that funder, or if the funder has deals with certain foreign entities.
What counts as lawsuit funding
Beginning May 6, 2026, Utah defines two types of third‑party lawsuit funding: consumer and commercial. A consumer deal is non‑recourse; the funder buys contingent rights and pays you directly. A commercial deal gives a funder an interest in claim proceeds through a written agreement. The law excludes attorney contingency fees, many medical liens with non‑contingent repayment, certain repayment loans, and 501(c)(3) nonprofits. Family, your accountant or attorney, and some banks that finance funding companies are not treated as consumer funders.
Rules start May 6, 2026
The law takes effect on May 6, 2026. That is when these rules and protections start.
New limits for commercial funders
Beginning May 6, 2026, commercial funders cannot make agreements with foreign entities or countries of concern. They cannot get or use sealed court materials unless a judge allows it. They cannot direct or control a party or the party’s attorney in the case or settlement.
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Sponsors & Cosponsors
Sponsor
James A. Dunnigan
Republican • House
Cosponsors
Brady Brammer
Republican • Senate
Roll Call Votes
Senate vote • 3/4/2026
Senate/ passed 2nd & 3rd readings/ suspension
Yes: 25 • No: 0
House vote • 2/27/2026
Senate Comm - Favorable Recommendation
Yes: 3 • No: 0
House vote • 2/24/2026
House/ substituted
Yes: 0 • No: 0
House vote • 2/24/2026
House/ passed 3rd reading
Yes: 67 • No: 1
House vote • 2/24/2026
House/ circled
Yes: 0 • No: 0
House vote • 2/24/2026
House/ uncircled
Yes: 0 • No: 0
House vote • 2/18/2026
House Comm - Favorable Recommendation
Yes: 13 • No: 0
House vote • 2/18/2026
House Comm - Substitute Recommendation
Yes: 13 • No: 0
Actions Timeline
Governor Signed
3/18/2026House/ to Governor
3/16/2026HouseHouse/ received enrolled bill from Printing
3/16/2026HouseHouse/ enrolled bill to Printing
3/12/2026HouseEnrolled Bill Returned to House or Senate
3/12/2026Draft of Enrolled Bill Prepared
3/6/2026Bill Received from House for Enrolling
3/6/2026House/ signed by Speaker/ sent for enrolling
3/5/2026HouseHouse/ received from Senate
3/5/2026HouseSenate/ to House
3/4/2026SenateSenate/ signed by President/ returned to House
3/4/2026SenateSenate/ passed 2nd & 3rd readings/ suspension
3/4/2026SenateSenate/ 2nd & 3rd readings/ suspension
3/4/2026SenateSenate/ Rules to 2nd Reading Calendar
3/4/2026SenateSenate/ 2nd Reading Calendar to Rules
3/4/2026SenateSenate/ placed on 2nd Reading Calendar
3/2/2026SenateSenate/ committee report favorable
3/2/2026SenateSenate Comm - Favorable Recommendation
2/27/2026Senate/ to standing committee
2/26/2026SenateSenate/ 1st reading (Introduced)
2/25/2026SenateSenate/ received from House
2/24/2026SenateHouse/ to Senate
2/24/2026HouseHouse/ passed 3rd reading
2/24/2026HouseHouse/ substituted
2/24/2026HouseHouse/ uncircled
2/24/2026House
Bill Text
Enrolled
3/12/2026
Substitute #3
2/23/2026
Substitute #2
2/18/2026
Substitute #1
2/13/2026
Introduced
1/19/2026
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