H.B. 280 Third Party Litigation Funding Amendments

What this bill does

The bill would add commercial litigation funders to the state's registry, requiring them to register and file annual reports, which consumer funders already do. It would also let consumers cancel a funding agreement within five to ten days, bar funding from certain foreign countries and entities of concern, and add transparency requirements.

Plain-English summary written by AI from the sponsor’s presentation in committee and on the floor. Check the official text below.

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Every vote

• 13 yes, 0 no, 3 absentHouse Business, Labor, and Commerce Committee: vote to change the bill · Feb 18, 2026Who voted how
• 13 yes, 0 no, 3 absentHouse Business, Labor, and Commerce Committee: vote to approve it · Feb 18, 2026Who voted how
• 67 yes, 1 no, 7 absentFinal House vote · Feb 24, 2026Who voted how
• 3 yes, 0 no, 6 absentSenate Judiciary, Law Enforcement, and Criminal Justice Committee: vote to approve it · Feb 27, 2026Who voted how
• 25 yes, 0 no, 4 absentFinal Senate vote · Mar 4, 2026Who voted how

Hearings and debates

• Feb 18, 2026 House Business, Labor, and Commerce Committee▶ Watch
  Transcript (16 turns)

  1. Committee chair2:10:24

     Yeah. Uh, we're gonna do, uh, we're, we're moving to agenda item number six, uh, third party litigation funding amendments. That's House Bill two 80.

  2. Rep. James A. Dunnigan2:10:38

     Thank you, Mr. Chairman. Committee member. So, about five years ago, I sponsored legislation, uh, created the Maintenance Funding Practices Act. And this year's an update, uh, really to try to provide transparency for this, this industry, and this financing mechanism. And we're gonna keep this high level and then try to answer any questions. I'm gonna turn some time over to Ryan Andres.

  3. Ryan Andrus, general counsel, WCF Insurance2:11:00

     Yes. Thank you. Thank you. Vice Chair and Committee. My name is Ryan Andres. I'm general counsel with WCF Insurance. We appreciate Representative Dungan working on this bill. Uh, this bill, what it does is it, uh, addresses, so his original bill back in 2020 addressed just consumer, uh, litigation financing. This bill, uh, also addresses commercial litigation financing. And what it does basically is it just tightens up Utah's bill and requires that commercial litigation funders also must register with the state, like consumer, uh, litigation funders. Um, this is an industry that is a growing industry. Many states are addressing and tightening up their litigation funding laws. So Utah is not alone in this. We appreciate the efforts. We've worked with Representative Dunnigan, UAJ industry folks from both the commercial and consumer side, um, and the Division of Consumer Protection and the court system, uh, to get this built to where it is today. And we appreciate Representative Dunnigan and his efforts. Thank you, Mr. Chairman. I'm speaking to the second sub.

  4. Committee chair2:12:09

     Okay. Thank you. Uh, we'll take it to the, uh, um, to the committee for clarifying questions. It appears there are none. Take it to the public for comment. Who here would like to speak to this bill? Okay. Come on up.

  5. Frank Pignanelli, lobbyist, American Finance Legal Association2:12:32

     Thank you, Mr. Chairman, members of the committee. I'm Frank Ginelli with Foxley Ginelli, Kathleen Styler. We are honored to represent the American Finance Legal Association, the largest group that represents legal financing entities in all 50 states. Uh, we really want to commend, uh, the, the people, good people from the, the trial lawyers to the workers' comp and to others. They've crafted what we consider very pro-consumer piece of legislation, and we support this wholeheartedly and ask for your support.

  6. Committee chair2:12:59

     Okay. Thank you. Appreciate it. We, we have two, uh, comments online. We're gonna keep it to a minute with, uh, uh, Rachel. Go. Go ahead and turn your camera on and, and introduce yourself and, and let us know your location.

  7. Rachel Sykes, Vice President, Utah Association for Justice2:13:14

     Hi, Rachel Sykes. I'm the Vice President of the Utah Association for Justice. I am, my location is about a mile up the street. I'm snowed in, so sorry. I couldn't make it down there. Um, so we worked together with Representative Dunnigan and with Ryan, um, on this bill. And we appreciate their responsiveness to our concerns. Uh, so we don't oppose this bill.

  8. Committee chair2:13:35

     Okay. Well, good to know. Thank you. Uh, um, I apologize in advance, but we're gonna go to the next pr Uh, we're going die, die y chain fa on. Go. Go ahead and, and turn your camera on. Uh, let us know your location and introduce yourself.

  9. Dai Wai Chin Feman, United States Chapter Chair, International Legal Finance Association2:13:53

     Thank you. Hi, everybody. My name is Dwe Chinen. I'm the US Chapter Chair of I lfa, the International Legal Finance Association, which is the trade Association for the Commercial Litigation Funding Industry. And I am zooming in today from New York City. Um, I appreciate, uh, having the time to, to participate and also the leadership of, um, Representative Dunnigan and Mr. Andres. I'm here only to speak to one issue, uh, which Mr. Andres and I have discussed a little bit, which is registration. Uh, the commercial litigation funding industry is very different from the commercial industry. And, uh, you know, there are only a handful of commercial litigation funders in the us only a handful of which a subset are likely to have done or done any business in the state of Utah, which would fall under this statute registration. Um, therefore could be an impediment. Oftentimes litigation funding transactions need to close very quickly because, uh, a law firm needs to be paid to continue a case, and these can be millions of dollars. And if there were registration hurdle prior to providing the financing, uh, that may limit the availability of litigation funding options for Utah, small businesses that need it for commercial litigation. And therefore, registration, we think would be more, more appropriate if it were limited to consumer litigation funders as it is in other states, because that implicates consumer protection statutes to the extent it's necessary for commercial litigation funders to register. Uh, there's two things that I think should bear in mind. The first is whether or not that registration could occur after the fact to account for the quick timeframe upon which small businesses often need funding. Uh, and the second would be in the annual report to remove the requirements that amounts and rates of return be redacted, as those are confidential information and could lead to, um, uh, kind of backdoor disclosure of confidential information that would, that that could hurt a plaintiff's case. Thank you very much.

  10. Committee chair2:15:42

      Uh, thank you. Appreciate your comments. We're gonna close public comment and take it to the, uh, the, the committee for further action. Okay. Uh, is that Representative Wynn or Matthews? Representative Matthews.

  11. Rep. Ashlee Matthews2:15:57

      Thank you, Mr. Chair. Make a motion. Is there a substitute? Uh, we, oh, do we already said? Okay. I make a motion that we pass out favorably. Second substitute HB two 80 I. We think we need to adopt the second substitute. Oh, you do? Sub My apologies. Uh, I draw that motion and instead I make a motion that we adopt the second substitute of HB two 80.

  12. Committee chair2:16:15

      The third what? Substitute Second sub second substitute. Good grief. All that's all right. Would you like to speak to that?

  13. Unknown speaker2:16:23speaker not certain

      Sure. Would not. Thank you. Okay. All right.

  14. Committee chair2:16:25

      To the sponsor. That's a good motion. Okay. In the committee, if your lights on, you'd like to speak to it. Here, there are none. Take it back to the, uh, the sponsor waive. All right. And to the maker of the motion Waive. All right. The motion is that we adopt the second substitute of House Bill two 83rd party litigation funding amendments. All in favor say aye. Aye. Aye. And those against, roll that passage unanimously. This time. Representative Matthews. Thank

  15. Rep. Ashlee Matthews2:16:51

      You. I make a motion that we pass out favorably. Second substitute HP two 80.

  16. Committee chair2:16:54

      All right. The motion is that we pass out Fair. Really house bill second. Substitute house bill two 80. Uh, would you like to speak to that? Nope. And to the committee. Committee, we waived waive the sponsor. Making a motion. Alright. All in all in favor, say aye. Aye. Aye. Those against All that passes unanimously. Thank you very much. Thank you. All right.

• Feb 24, 2026 House floor debate▶ Watch
  Transcript (4 turns)

  1. Speaker (presiding)1:09:16

     Second substitute House bill two 83rd party litigation funding amendments by Representative Dunnigan. This will of assert in business and labor with a vote. 13 0 3.

  2. Speaker (presiding)1:09:28

     Representative Bolinder. Representative Bolinder.

  3. Rep. Anthony E. Loubet1:09:32speaker not certain

     Motion to circle. Motion is to circle. All in favor say aye.

  4. Speaker (presiding)1:09:36

     Opposed say no. Motion carries the bill of circled matter. B Clerk

• Feb 24, 2026 House floor debate▶ Watch
  Transcript (9 turns)

  1. Speaker (presiding)1:30:18

     Second substitute HB two 80 consumer or third party litigation funding amendments. Thank you, Representative Dunnigan. That motion is in order. Would you like to, uh, speak to it or we'll go ahead and place the motion? Yeah. Motion before us is the house UNC Encircle. Second substitute HB two 80. All in favor say aye. Aye. Any opposed? Rollout. Motion passes. The bill's been encircled before the body for its consideration.

  2. Rep. James A. Dunnigan1:30:46

     Representative Dunnigan. Thank You Mr. Speaker. I move to adopt third substitute house Bill two 80.

  3. Speaker (presiding)1:30:51

     Thank you Representative Dunnigan. That motion is in order. Would you like to speak to it?

  4. Rep. James A. Dunnigan1:30:55

     Yes. The third sub includes a coordination clause. There's a Senate bill that's also working in this space, and it provides a coordination clause with the Senate. Bill.

  5. Speaker (presiding)1:31:02

     Thank you Representative Dunnigan discussion to the motion to adopt third substitute on HB two 80. None will go ahead and place the motion, the motion before us to Alice adopt third, substitute HB two 80. All in favor say aye. Aye. Any opposed for that? Motion passes. The bill's been substituted before the body for further consideration. Back to Representative Dunnigan.

  6. Rep. James A. Dunnigan1:31:29

     Thank you Mr. Speaker. So third party litigation gets involved as, let's say you're in an injury, let, you're waiting for a settlement, uh, and you, you have daily living expenses and maybe you feel like you need to settle because you can't hold out until the settlement comes in or until it goes through the legal process. So there are lenders out there that will kind of front you the money and say, we'll give you some daily living expenses so that you can, uh, continue on and let us fight the battle for you. It's done on both a consumer level and then a larger, if multiple people are involved or businesses involved, it's done on a commercial level. Basically they front the money on the consumer level, they charge you interest. It's an non-recourse loan. But if you get a settlement, then they charge you kind of a high interest rate and they recoup their money on a commercial litigation funding. They get a piece of the, of the settlement. It's become quite an industry. Uh, five or six years ago we started registering this for consumers. So what this bill does add some additional consumer protections, add transparency, and it provides registration for the commercial lending business just like we do currently in the consumer lending. The vision of consumer protection as a registry, I think it costs 300 bucks. The business to lender goes and registers files an annual report, and it extends a consumer's right to rescind an agreement for five to 10 days. So if they change their minds, it gives 'em a few more days to do that. And one important thing it does, it prevents foreign money from certain countries. Some of the countries, you can figure out who they are. There's about half a dozen of 'em that they have prohibitions on investing and putting certain funds in. In the United States, they're using this as a tool to kind of invest and to put dollars in the United States. So it has a prohibition on that. And with that, Mr. Speaker, I'm open to questions.

  7. Speaker (presiding)1:33:38

     Thank you, Representative Dunnigan. Uh, discussion to the bill. Seeing none. Back to Representative Dunnigan for summation.

  8. Rep. James A. Dunnigan1:33:47

     Thank you, Mr. Speaker. We've been working with, uh, a variety of different parties for some time on this. Uh, supported one of the main national lenders. American Legal Finance Association, uh, supports it as well as the Alliance responsible consumer legal funding. It protects consumers, provides more transparency. Thank you, Mr. Speaker.

  9. Speaker (presiding)1:34:08

     Thank you. Rep Sam Dunnigan voting will now be open on third substitute HB two 80. Representative Nguyen, would you like to vote? See now President voted voting is now closed. Third substitute HB two 80 passes this body with 67 yes votes one no vote and be sent to the Senate for its consideration. Madam Reading Clerk

• Feb 24, 2026 House floor debate▶ Watch
  Transcript (8 turns)

  1. Rep. James A. Dunnigan1:30:46

     Representative Dunnigan. Thank You Mr. Speaker. I move to adopt third substitute house Bill two 80.

  2. Speaker (presiding)1:30:51

     Thank you Representative Dunnigan. That motion is in order. Would you like to speak to it?

  3. Rep. James A. Dunnigan1:30:55

     Yes. The third sub includes a coordination clause. There's a Senate bill that's also working in this space, and it provides a coordination clause with the Senate. Bill.

  4. Speaker (presiding)1:31:02

     Thank you Representative Dunnigan discussion to the motion to adopt third substitute on HB two 80. None will go ahead and place the motion, the motion before us to Alice adopt third, substitute HB two 80. All in favor say aye. Aye. Any opposed for that? Motion passes. The bill's been substituted before the body for further consideration. Back to Representative Dunnigan.

  5. Rep. James A. Dunnigan1:31:29

     Thank you Mr. Speaker. So third party litigation gets involved as, let's say you're in an injury, let, you're waiting for a settlement, uh, and you, you have daily living expenses and maybe you feel like you need to settle because you can't hold out until the settlement comes in or until it goes through the legal process. So there are lenders out there that will kind of front you the money and say, we'll give you some daily living expenses so that you can, uh, continue on and let us fight the battle for you. It's done on both a consumer level and then a larger, if multiple people are involved or businesses involved, it's done on a commercial level. Basically they front the money on the consumer level, they charge you interest. It's an non-recourse loan. But if you get a settlement, then they charge you kind of a high interest rate and they recoup their money on a commercial litigation funding. They get a piece of the, of the settlement. It's become quite an industry. Uh, five or six years ago we started registering this for consumers. So what this bill does add some additional consumer protections, add transparency, and it provides registration for the commercial lending business just like we do currently in the consumer lending. The vision of consumer protection as a registry, I think it costs 300 bucks. The business to lender goes and registers files an annual report, and it extends a consumer's right to rescind an agreement for five to 10 days. So if they change their minds, it gives 'em a few more days to do that. And one important thing it does, it prevents foreign money from certain countries. Some of the countries, you can figure out who they are. There's about half a dozen of 'em that they have prohibitions on investing and putting certain funds in. In the United States, they're using this as a tool to kind of invest and to put dollars in the United States. So it has a prohibition on that. And with that, Mr. Speaker, I'm open to questions.

  6. Speaker (presiding)1:33:38

     Thank you, Representative Dunnigan. Uh, discussion to the bill. Seeing none. Back to Representative Dunnigan for summation.

  7. Rep. James A. Dunnigan1:33:47

     Thank you, Mr. Speaker. We've been working with, uh, a variety of different parties for some time on this. Uh, supported one of the main national lenders. American Legal Finance Association, uh, supports it as well as the Alliance responsible consumer legal funding. It protects consumers, provides more transparency. Thank you, Mr. Speaker.

  8. Speaker (presiding)1:34:08

     Thank you. Rep Sam Dunnigan voting will now be open on third substitute HB two 80. Representative Nguyen, would you like to vote? See now President voted voting is now closed. Third substitute HB two 80 passes this body with 67 yes votes one no vote and be sent to the Senate for its consideration. Madam Reading Clerk

• Feb 27, 2026 Senate Judiciary, Law Enforcement, and Criminal Justice Committee▶ Watch
  Transcript (13 turns)

  1. Committee chair (presiding)1:39:16

     Oh. Well, I guess we can skip all the way to Representative Dunnigan who apparently read the room better than I did. Thank you for your patience. Do you need to be anywhere? 'cause we could have taken you out of order. I could make something up, but Pizza orders, anything like that? No. Okay. Thanks. Please proceed.

  2. Rep. James A. Dunnigan1:39:34

     Thank you, Mr. Chair. So six years ago we created a registry for Con Consumer, um, litigation financing. This in this involves, uh, a tort. So let's say you're injured or, or you have a claim and you think was time you can work out a better settlement with the insurance company, but you don't have enough money to pay your daily living expenses. So there are companies that will finance that. They'll give you your, uh, money to finance it so you can afford to continue on and, and, uh, wage your your case. And, and then they charge the course. The finance company charges an interest. So that's consumer lending. Larger cases in the commercial space are gonna involve businesses, much large, larger claims, more sophisticated. Six years ago, we set up a registry with a consumer protection division. And the industry, uh, has grown considerably from 300 or so to 1300 since that time that are now operating in Utah. What this bill does is it provides some additional consumer protections to those who are consumer. It gives a consumers 10 days to rescind a contract instead of five. And it prevents foreign entities from certain concerning nations from investing in this. Some of these foreign entities are using this way to get around investing in the United States. So they're putting money in this. So this, this bill creates a, that we already have a registry division of consumer Protection for consumer lending. This adds commercial lending to that. And what they do is they, they register and then they give a copy of their contracts at the end of the year for the consumer lending. This past year, the, uh, division of Consumer Protection did an audit, and they, they found that there were 600 violations issued over a hundred thousand dollars in, in fines. But really what we're doing is we're trying to protect consumers and trying to provide a little more transparency. And I'd be glad to go into more detail if you wish, Mr. Chair? Um, I'm good. Thank you.

  3. Committee chair (presiding)1:41:35

     Does that conclude your presentation?

  4. Rep. James A. Dunnigan1:41:36

     That is my presentation. Okay. I, I appreciate the offer.

  5. Committee chair (presiding)1:41:39speaker not certain

     By the way, have you presented in that other committee transportation yet?

  6. Rep. James A. Dunnigan1:41:42speaker not certain

     Dennis? Yes. Did that pass? Yes. Okay. We, we've got a bill together. Um, thank you.

  7. Committee chair (presiding)1:41:48

     I don't see any questions from the committee. So are there members of the public that would like to be heard on this? Bill? We have one if one of you want to vacate your seat and one online. So we'll take two comments for 90 seconds each. You did a good job. Go ahead. Excuse me. Thank you. Um, you can sign in after you testify.

  8. Machi Johnson, American Legal Finance Association1:42:14

     Thank you, Mr. Chair and committee members. My name's Mackay Johnson. I'm representing the American Legal Finance Association, which provides educational resources and funding for consumers. On behalf of the association, I want to compliment Representative Dunnigan for his great work on this legislation. We appreciate the careful thought that he put into this and would also like to thank the other stakeholders who are, who are involved with this and we support this bill. Thank you.

  9. Committee chair (presiding)1:42:40

     Thank you. Thanks for being succinct. And, uh, Mr. London, can you tell us your name and what county you're from?

  10. Kurt London, Utah Association for Justice1:42:47

      Hi, Kurt London from Utah County. I'm here as a representative for Utah Association for Justice. We support this bill. We also wanted to thank the sponsor for working with us in the language of it. We really appreciate it.

  11. Committee chair (presiding)1:42:59

      Thank you. Thank you very much. We'll close the public hearing and bring it back to the Committee for action. Senator Baldry,

  12. Sen. Heidi Balderree1:43:08

      I recommend that we pass out with a favorable recommendation, third substitute house bill two 80 to the full body of the Senate.

  13. Committee chair (presiding)1:43:14

      All right, we have a motion to favorably recommend the bill. Um, Representative Dunnigan, would you like to sum waive? All right. All in favor say aye. Aye. Aye. Aye. Any opposed? Chair of that passes unanimously three to zero. Senator Pitcher, do you wanna vote? She's gone. She's gone now. Okay. Well, you got three votes. That's all you need. Congratulations. Um, all right. Um, I see Clancy here. Defe just walked in. Okay.

• Mar 4, 2026 Senate floor debate▶ Watch
  Transcript (15 turns)

  1. Senate President (presiding)2:37:49

     funding Amendments. Senator Brammer. Senator Brammer.

  2. Sen. Brady Brammer2:37:53

     Yeah. Thank you. So in 2020, Representative Dunnigan created a maintenance funding practices act that began the regulation of litigation funding. This bill strengthens the protections and improves transparency and accountability and litigation funding it distinguishes between consumer and commercial maintenance funding. Uh, commercial funding is usually provided to businesses or institutional claimants and involves large amounts of money and it direct collateralized interest in the litigation. This requires commercial funders to register with the state. Commercial consumer funders already are required to register. Uh, this prevents foreign countries and entities of concern from providing maintenance funding and it applies to commercial funders. That same restrictions on influencing the underlying legal claim that the statute already applies to consumer funders. Uh, and this has the, uh, support of the various legal industries. And with that, I'm open to any questions.

  3. Senate President (presiding)2:38:53

     Thank you Senator, for the presentation. I was, that concludes your presentation. That Does, yes. I'm open to any questions on it? See you, no questions. I'm gonna go to you for a motion.

  4. Sen. Brady Brammer2:39:02

     I'll call the question. Thank you.

  5. Senate President (presiding)2:39:04

     Okay. The question is, under suspension of the role shall substitute house bill two 80 pass. Roll call vote.

  6. Senate clerk2:39:10

     Senator Vickers. Sp aye. Lewin Aye. Brammer Bus Comore Escamia Fillmore Grover Harper.

  7. Senate President (presiding)2:39:22

     Okay, I'm gonna handle it right After Harper Kinins.

  8. Senate clerk2:39:26

     Aye. Ipson a Johnson Juab McKay. Mikel Milner Musman Owens pitcher Plum Rebi Sandal Stevenson. Stratton Thickers. Thickers.

  9. Senate President (presiding)2:39:59

     Okay. Bickers. Go To McKay, though. We're gonna suspend the rules.

  10. Senate clerk2:40:03

      Senator Weiler. Senator Wilson. Aye. Winterton Aye. Adams President Adams Aye.

  11. Senate President (presiding)2:40:13

      Thirst substitute house bill two 80, having received 25 yay votes. Zero na votes four being absent passes this body and will be re signed by the president. Return to the house for the signature of the speaker.

  12. Senate President (presiding)2:40:28

      And you go to Senator McKay. We're gonna suspend the rules, don't you think? Senator?

  13. Sen. Daniel McCay2:40:34

      Thank you. President. Motion to suspend the rules. Motion to suspend the rules for the purpose of hearing a Senate, senate bill.

  14. Senate President (presiding)2:40:43

      Uh, do we have discussion on that motion? We need to pass another Senate. Bill, what do you think?

  15. Senate President (presiding)2:40:51

      All in favor say aye. Aye. Wow, that's exciting. Maybe we'd have pass all the rest of the Senate bills and he opposed. Roll. That motion passes. So I'm gonna go to the third reading calendar