SB 2747 Mississippi Senate · 2026 Regular Session

Foreign Third-Party Litigation Funders; require disclosure to the Attorney General.

SB 2747, the Mississippi Transparency in Consumer Legal Funding Act, regulates companies that provide advance payments to people with legal claims (like personal injury cases) in exchange for a share of future settlement proceeds. It requires these contracts to be written in plain language, include a 10-day right to cancel without penalty, and contain specific disclosures about fees. The law also prohibits prepayment penalties, bans attorneys from having financial ties to funding companies they refer clients to, and mandates that all funding companies register with the Secretary of State. This directly affects consumers using legal funding, the companies offering it, and attorneys handling such cases in Mississippi.

Bill status signed all 5 stages cleared

Introduction

Feb 2026

Committee Review

Apr 2026

Senate Passage

Feb 2026

House Passage

Mar 2026

Signed into Law

Apr 2026

Introduced Feb 13, 2026 Signed Apr 8, 2026

Maddy AI version diff · 3 comparisons

What changed between versions

As Passed the upper → Current version · 8 edits

MODERATE

The bill was completely rewritten to shift focus from regulating all consumer legal funding transactions to specifically targeting foreign third-party litigation funders. The new version removes broad consumer protections and attorney restrictions, replacing them with a requirement for foreign funders to disclose information to the Attorney General within 30 days of signing an agreement.

Scope change

The bill's scope narrowed significantly from a general consumer protection law to a specific disclosure requirement for foreign entities involved in litigation funding.

SCOPE

Removed the 'Mississippi Transparency in Consumer Legal Funding Act' title and replaced it with a focus on foreign third-party litigation funders.

DEFINITION

Deleted extensive definitions for consumer legal funding, consumer legal funding companies, and related terms that governed general transactions.

Added new definitions for 'foreign entity of concern,' 'foreign person,' and 'foreign third-party litigation funder'.

REQUIREMENT

Removed requirements for written attorney acknowledgments, prepayment penalty prohibitions, and specific contract disclosure language.

Added a requirement for foreign funders to disclose names, addresses, and citizenship details of foreign entities with contingent rights to the Attorney General.

Added a requirement for foreign funders to disclose receipt of proprietary or national security information to the Attorney General.

ELIGIBILITY

Eliminated prohibitions preventing attorneys or their family members from having financial interests in funding companies.

TIMELINE

Set a new deadline of 30 days after agreement execution or filing for foreign funders to submit required disclosures.

As Introduced → Committee Substitute · 8 edits

MODERATE

The bill was renumbered from SB 2747 to SB2747 (Committee Substitute) and reorganized into twelve distinct sections. The most significant substantive change is the addition of a requirement for attorneys to sign a written acknowledgement confirming they have reviewed disclosures and received no referral fees from the funding company; failure to provide this acknowledgement now renders the funding contract void. The bill also expanded prohibitions to prevent attorneys and their immediate family members from having any financial interest in the funding company and added specific rules regarding the assignment of liens and registration fees.

Scope change

The bill's scope was clarified by adding a specific definition for 'consumer' to include estates for decedents related to wrongful death. Additionally, the bill now explicitly states that compliant transactions are not loans and are not subject to loan laws, effectively creating a regulatory exemption for this type of funding.

REQUIREMENT

Added a mandatory written acknowledgement by the attorney confirming they reviewed disclosures and received no referral fees; failure to include this makes the contract null and void.

Prohibited attorneys and their immediate family members from having any financial interest in the consumer legal funding company offering services to that attorney's client.

ELIGIBILITY

Explicitly defined 'consumer' to include estates for decedents related to wrongful death claims.

ENFORCEMENT

Established a civil penalty of up to $5,000 for each willful violation and clarified that the Attorney General's powers are not restricted by this act.

DEFINITION

Added new definitions for 'Charges' and 'Resolution date' to clarify what fees are included and when the funding transaction is considered complete.

TECHNICAL

Added a clause stating that the act supersedes conflicting laws governing loans or investment contracts.

Reorganized the bill structure from a continuous list of definitions and requirements into twelve specific sections for better readability.

TIMELINE

Set the effective date of the act to July 1, 2026.

Floor votes · Senate Feb 12, 2026 · House Mar 10, 2026

How they voted

52–0

Passed

Total votes 52

Feb 12, 2026

D Democratic18

18 Yea

100% Yea

R Republican34

34 Yea

100% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Amendments

Apr 8, 2026

Signed into law

Approved by Governor

executive

Apr 1, 2026

Lower · Passed

Conference Report Adopted

lower

Mar 31, 2026

Upper · Passed

Conference Report Filed

upper

Mar 31, 2026

Committee

Recommitted For Further Conf

lower

Mar 30, 2026

Lower · Passed

Conference Report Filed

lower

Mar 10, 2026

Lower · Passed

Passed As Amended

lower

Mar 10, 2026

Lower · Passed

Amended

lower

Mar 3, 2026

Lower · Passed

Title Suff Do Pass As Amended

lower

Feb 16, 2026

Committee

Referred To Judiciary A

lower

Feb 13, 2026

Introduced

Transmitted To House

upper

Feb 12, 2026

Upper · Passed

Passed

upper

Feb 3, 2026

Upper · Passed

Title Suff Do Pass Comm Sub

upper

Jan 19, 2026

Committee

Referred To Judiciary, Division A

upper

1 primary · 0 co-sponsors