HB 25-1329: Foreign Third-Party Litigation Financing

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

The act requires a foreign third-party litigation funder (funder) that enters into a litigation financing agreement (agreement) to disclose and submit certain information to the Colorado attorney general. The act prohibits a funder from: Utilizing a domestic entity as a means of providing litigation financing to a party or attorney in a civil action; Deciding, influencing, or directing an attorney with respect to the conduct of the civil action or any settlement or resolution of the civil action; Assigning rights to profits other than the right to receive a share of the proceeds awarded in the civil action as outlined in the agreement; or Sharing proprietary information, or information affecting national security interests obtained as a result of the agreement for the civil action, with anyone who is not a party or an attorney. The act subjects an agreement to discovery under the Colorado rules of civil procedure and Colorado rules of evidence. The act deems an agreement entered into by a funder void if the funder fails to comply with the activity and disclosure requirements. A funder's failure to comply with the requirements of this act constitutes a deceptive or unfair trade practice. The act allows the attorney general to bring legal action against a funder to enforce compliance with the act, impose fines, prohibit a funder from operating in this state, or impose any other sanction the attorney general deems appropriate for a violation of the activity or disclosure requirements. The act requires the department of law to include information about funders in its annual "SMART Act" hearing annually, beginning in January 2026. (Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 10 · Republican 3

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. June 3, 2025Governor Signed
2. May 14, 2025Signed by the Speaker of the House
3. May 14, 2025Signed by the President of the Senate
4. May 14, 2025Sent to the Governor
5. May 6, 2025Senate Third Reading Passed - No Amendments
6. May 5, 2025Senate Committee on Judiciary Refer Unamended to Appropriations
7. May 5, 2025Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
8. May 5, 2025Senate Second Reading Special Order - Passed - No Amendments
9. April 28, 2025Introduced In Senate - Assigned to Judiciary
10. April 25, 2025House Third Reading Passed - No Amendments
11. April 24, 2025House Third Reading Laid Over Daily - No Amendments
12. April 23, 2025House Second Reading Special Order - Passed with Amendments - Committee, Floor

Showing 12 most recent of 16 actions. Full history