Signed by Governor Brian Kemp

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that requires third-party litigation investors to register with the state Department of Banking and Finance in Georgia.

Highlights:

• Amends provisions related to banking and finance to regulate litigation financing practices in Georgia (Sec. 2). 

• Defines “litigation financier” as any broker-dealer, institutional investor, issuer, or any other person engaging in business or economic activity that involves providing litigation financing in exchange for consideration of any kind (Sec. 2). 

• Defines “litigation financing” as an agreement in which a litigation financier provides financing to a person or entity involved in a legal case in exchange for a contingent right to payment (Sec. 2). 

• Prohibits any person with relevant affiliations with foreign persons, foreign principals, or sovereign wealth funds from serving as litigation financiers (Sec. 2). 

• Requires registration as a litigation financier with the state Department of Banking and Finance by providing a registration statement with the following information (Sec. 2):

• Their legal name;

• Their principal business address:

• Their telephone number and email address;

• The name, principal business address, and mailing address of their registered agent authorized to accept legal documents;

• The name, principal business address, and country of incorporation of any foreign entity or sovereign wealth fund affiliated with their litigation financing business; and

• Any additional information requested by the department.

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 4). 

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that requires third-party litigation investors to register with the state Department of Banking and Finance in Georgia.

Highlights:

• Amends provisions related to banking and finance to regulate litigation financing practices in Georgia (Sec. 2). 

• Defines “litigation financier” as any broker-dealer, institutional investor, issuer, or any other person engaging in business or economic activity that involves providing litigation financing in exchange for consideration of any kind (Sec. 2). 

• Defines “litigation financing” as an agreement in which a litigation financier provides financing to a person or entity involved in a legal case in exchange for a contingent right to payment (Sec. 2). 

• Prohibits any person with relevant affiliations with foreign persons, foreign principals, or sovereign wealth funds from serving as litigation financiers (Sec. 2). 

• Requires registration as a litigation financier with the state Department of Banking and Finance by providing a registration statement with the following information (Sec. 2):

• Their legal name;

• Their principal business address:

• Their telephone number and email address;

• The name, principal business address, and mailing address of their registered agent authorized to accept legal documents;

• The name, principal business address, and country of incorporation of any foreign entity or sovereign wealth fund affiliated with their litigation financing business; and

• Any additional information requested by the department.

• Specifies that the provisions of this bill shall take effect immediately upon passage and approval by the Governor (Sec. 4). 

Full Bill Text