Michigan legislation · 103rd Legislature
Michigan HB5281: Financial institutions: other; third-party litigation funding transparency; provide for. Creates new act.
Status: In committee, May 14, 2026
What the bill says
To regulate third-party litigation funding transactions; to require disclosures in those transactions; to establish the responsibilities of litigation funding companies and of attorneys; to require registration of litigation funding companies; to impose fees; to provide for the powers and duties of state governmental officers and entities; to prescribe civil fines and to provide remedies; and to require and allow the promulgation of rules.
From the engrossed text, May 12, 2026:
A bill to regulate third-party litigation funding transactions; to require disclosures in those transactions; to establish the responsibilities of litigation funding companies and of attorneys; to require registration of litigation funding companies; to impose fees; to provide for the powers and duties of state governmental officers and entities; to prescribe civil fines and to provide remedies; and to require and allow the promulgation of rules. the peoplE of the state of michigan enact: Sec. 1. This act may be cited as the "third-party litigation funding transparency act". Sec. 3. As used in this act: (a) "Advertise" means publish or disseminate a written, oral, electronic, or printed communication or a communication by means of recorded telephone messages or transmitted or broadcast on radio, television, the internet, or similar communications media, including audio recordings, film strips, motion pictures, and videos, published, disseminated, circulated, or placed before the public, directly or indirectly, for the purpose of inducing a consumer to enter into a consumer litigation funding. (b) "Charges" means the amount of money to be paid to the consumer litigation funding company by or on behalf of the consumer, above the funded amount provided by or on behalf of the consumer litigation funding company to a consumer. Charges include all administrative, origination, underwriting, or other fees, including interest, no matter how denominated. Charges …