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
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
8 provisions identified: 4 benefits, 2 costs, 2 mixed.
Stronger protections against lawsuit funding abuses
Beginning May 6, 2026, a funder or its successor cannot enforce an agreement tied to the funder's willful violation of this law. Consumer funders cannot influence settlements, interfere with lawyers' judgment, or seek to waive consumer rights, including jury trials. They also cannot fund court costs or lawyer fees based on the funding. Referral fees for sending consumers to funders are barred, with limited exceptions such as certain bar referral services.
Broader lawsuit funding access with conditions
Beginning May 6, 2026, consumer lawsuit funding covers Utah residents, people domiciled there, plaintiffs with Utah claims, and Utah wrongful-death estates. The revised definition drops the former $500,000 funding maximum. Consumers must sign a statement confirming they reviewed disclosures with their lawyer and have a written contingency-fee agreement. They must direct their lawyer to handle claim money through a trust account or settlement fund and follow the funding agreement. Without this statement, the agreement is void; later ending or changing lawyers does not invalidate it. Providers cannot offer funding when the consumer's lawyer or referring law firm has a financial interest in the provider.
Lawsuit funders gain settlement payment priority
Beginning May 6, 2026, a party can assign a funder the right to receive a stated amount from future claim proceeds. The funder's lien takes priority over other liens, except lawyers' liens and Medicare or other statutory liens tied to that claim. This allows claim proceeds to back funding but affects how much settlement money remains for the claimant.
Clearer lawsuit funding costs for consumers
Beginning May 6, 2026, providers must give consumers complete, plain-language agreements before signing. Agreements must show the funded amount, itemized one-time charges, and repayment totals at six-month intervals, including the total payable. Multiple agreements with the same company must show the combined amount due, including charges. A capital-letter notice in at least 12-point type must explain that repayment comes only from available claim proceeds. Consumers owe nothing without proceeds, except for fraud or a material contract violation. Agreements must explain that providers cannot control settlements, describe the 10-business-day cancellation right, and warn consumers above their signature to read and consult a lawyer.
More time to cancel lawsuit funding
Beginning May 6, 2026, consumers have 10 business days after signing to cancel lawsuit funding, up from five. Cancellation carries no penalty or further obligation when consumers return all disbursed money using a method listed in the agreement. Providers also cannot charge a separate fee or penalty for early repayment. No part of a consumer funding payment can be based on a percentage of the recovery.
Commercial lawsuit clients keep case control
Beginning May 6, 2026, commercial lawsuit funders cannot direct a funded party or lawyer or claim a contractual right to control them. The party and lawyer keep control over handling, settling, and resolving the claim. Funders cannot receive, access, or use sealed or court-protected case information without a court order specifically authorizing access. Commercial funding rules exclude consumer agreements, contingency-fee lawyer arrangements, health plans, ordinary noncontingent bank lending, nonprofit pro bono funding, environmental cleanup funding, and specified medical liens.
Lawsuit funders face foreign party limits
Beginning May 6, 2026, consumer and commercial lawsuit funders cannot make covered agreements directly or indirectly with designated foreign parties of concern. The ban covers foreign entities, countries, and people identified under the law's referenced federal or state lists. This limits which parties providers can contract with.
Lawsuit funders face registration and reporting
Beginning May 6, 2026, consumer funders and providers regularly offering commercial lawsuit funding must register with Utah's Division of Consumer Protection. They must renew yearly, pay applicable fees, and submit required information; the Division sets transition rules. By April 1, registered providers must file sworn reports for the prior year covering agreement counts, funding totals, itemized charges, annual returns, and realized-versus-contracted profits. Consumer providers must file an agreement template before making agreements. The Division can make rules, impose penalties, and enforce the law.
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
Senate 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