Foreign Third-Party Litigation Financing
Summary
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.)
Bill status
signed
all 5 stages cleared
Introduction
Apr 2025
Committee Review
May 2025
House Passage
Apr 2025
Senate Passage
May 2025
Signed into Law
Jun 2025
Introduced Apr 11, 2025
Signed Jun 3, 2025
Maddy AI version diff · 5 comparisons
What changed between versions
Rerevised (05/06/2025)
→
Revised (05/05/2025)
·
3 edits
MINOR
The bill was revised to update the versioning information and add a new category of loans that are excluded from certain legal protections. Specifically, loans made directly to a party or their attorney where repayment does not depend on the outcome of a legal claim are now included in the list of excluded financial arrangements.
Scope change
The bill's scope was expanded to include a new type of loan arrangement that was previously not explicitly covered.
SCOPE
Added a new provision (Section III) that excludes loans made directly to a party or their attorney when repayment is not contingent on the judgment, award, settlement, or verdict in a claim or action.
TECHNICAL
Updated the version header from 'REREVISED' to 'REVISED' and modified the amendment adoption language to reflect that amendments were adopted on second reading in the Second House.
Removed the '3rd Reading Unamended' date stamp and related Senate committee information from the document header.
Floor votes · Senate May 6, 2025 · House Apr 25, 2025
How they voted
31–3
Passed
Total votes 34
May 6, 2025
D
Democratic22
90% Yea
R
Republican12
91% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
16
Key actions
5
Committee
3
Jun 3, 2025
Signed into law
Governor Signed
executive
May 6, 2025
Upper · Passed
Senate Third Reading Passed - No Amendments
upper
May 5, 2025
Upper · Passed
Senate Committee on Appropriations Refer Unamended - Consent Calendar to Senate Committee of the Whole
upper
May 5, 2025
Committee
Senate Committee on Judiciary Refer Unamended to Appropriations
upper
Apr 28, 2025
Introduced
Introduced In Senate - Assigned to Judiciary
upper
Apr 25, 2025
Lower · Passed
House Third Reading Passed - No Amendments
lower
Apr 15, 2025
Lower · Passed
House Committee on Judiciary Refer Amended to House Committee of the Whole
lower
Apr 11, 2025
Introduced
Introduced In House - Assigned to Judiciary
lower
4 primary · 10 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Javier Mabrey
DDemocratic
P
Julie Gonzales
DDemocratic
P
Lisa Frizell
RRepublican
P
Matt Soper
RRepublican
Co
Cecelia Espenoza
DDemocratic
Co
Chad Clifford
DDemocratic
Co
Emily Sirota
DDemocratic
Co
Jarvis Caldwell
RRepublican
Co
Jennifer Bacon
DDemocratic
Co
LG
Lorena García
DDemocratic
Co
Manny Rutinel
DDemocratic
Co
Naquetta Ricks
DDemocratic
Co
Tammy Story
DDemocratic
Co
Yara Zokaie
DDemocratic
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