HB 280 Utah House · 2026 General Session

Third Party Litigation Funding Amendments

HB 280 regulates third-party litigation funding in Utah by creating clear distinctions between funding for individuals ("consumer maintenance") and businesses ("commercial maintenance"). It extends consumers' right to cancel funding agreements (rescission), restricts foreign entities from providing such funding, and prohibits funding providers from influencing case decisions or settlements. The bill also requires businesses to disclose outcome-based funding agreements in court and holds funding providers jointly liable for costs if a case fails. These changes primarily affect individuals in personal injury or wrongful death cases and businesses using litigation funding, aiming to increase transparency and protect consumers from predatory practices.

Bill status signed all 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

House Passage

Mar 2026

Senate Passage

Mar 2026

Signed into Law

Mar 2026

Introduced Jan 20, 2026 Signed Mar 18, 2026

Maddy AI version diff · 4 comparisons

What changed between versions

Substitute #3 → Enrolled · 6 edits · Mar 18, 2026

MODERATE

The bill was finalized with minor formatting corrections to the header and title, while the substantive policy changes regarding third-party litigation funding remain intact. The legislation defines new categories for funding agreements, requires providers to register with the state, and establishes strict rules to prevent foreign entities from participating in Utah legal funding.

Scope change

The bill's scope remains focused on regulating third-party litigation funding in Utah, distinguishing between consumer and commercial agreements, and prohibiting foreign involvement.

TECHNICAL

Corrected the header date from February 23, 2026, to March 11, 2026, and fixed a missing semicolon in the long title description.

DEFINITION

Introduced new definitions for 'consumer maintenance funding agreement,' 'commercial maintenance funding agreement,' and 'foreign entity of concern' to clarify regulatory boundaries.

REQUIREMENT

Mandated that all maintenance funding providers register with the Division of Consumer Protection and submit annual reports detailing their financial transactions.

ENFORCEMENT

Prohibited commercial funding providers from directing litigation decisions or controlling settlement outcomes, ensuring the client and attorney retain full control.

ELIGIBILITY

Explicitly banned foreign governments, persons of concern, and designated foreign terrorist organizations from entering into maintenance funding agreements in Utah.

Clarified that attorneys, accountants, and immediate family members are excluded from the definition of a 'maintenance funding provider' to prevent conflicts of interest.

Introduced → Substitute #1 · 9 edits

MAJOR

The bill was significantly expanded to cover both consumer and commercial third-party litigation funding, adding new definitions and registration requirements for commercial providers. It strengthened protections for consumers by extending the right to cancel funding agreements to 10 days, clarifying attorney obligations, and establishing joint liability for funding providers regarding court sanctions. New rules were added to prohibit foreign entities of concern from participating in funding and to require disclosure of commercial funding agreements in court. The bill also created a new chapter in the Health Care Code to define these terms for medical contexts.

Scope change

The bill's scope expanded from focusing primarily on consumer maintenance funding to explicitly including commercial maintenance funding, and it added new definitions to the Health Care Code chapter to ensure consistency across legal and medical contexts.

DEFINITION

Added specific definitions for 'commercial maintenance funding agreement' and 'commercial maintenance funding provider' to distinguish them from consumer-focused funding.

REQUIREMENT

Mandated that commercial maintenance funding providers register with the Division of Consumer Protection, similar to consumer providers.

Required parties to disclose commercial maintenance funding agreements to other parties in a lawsuit without waiting for a discovery request.

Prohibited commercial funding providers from directing, influencing, or controlling the conduct, settlement, or resolution of a legal claim.

Clarified that communications between an attorney and a funding provider regarding claim status are protected from discovery.

Added a requirement for funding providers to file annual reports detailing the number and value of agreements entered into.

ELIGIBILITY

Extended the consumer's right to rescind (cancel) a funding agreement from 5 business days to 10 business days.

ENFORCEMENT

Established that funding providers are jointly and severally liable for costs or sanctions imposed on a client related to the funded legal claim.

SCOPE

Added new sections to the Health Care Code (78B-3-1301 and 78B-3-1302) to define funding terms and require disclosure of funding agreements in medical-related legal claims.

Floor votes · Senate Mar 5, 2026 · House Feb 24, 2026

How they voted

25–0

Passed · 4 other

Total votes 29

Mar 5, 2026

D Democratic6

5 Yea 1

83% Yea

N Forward1

1 Yea

100% Yea

R Republican22

19 Yea 3

86% Yea

Vote distribution

All Yea All Nay Mixed No data

Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 18, 2026

Signed into law

Governor Signed

executive

Mar 5, 2026

Lower · Passed

House/ signed by Speaker/ sent for enrolling

lower

Mar 5, 2026

Lower · Passed

Senate/ signed by President/ returned to House

lower

Mar 2, 2026

Upper · Passed

Senate/ committee report favorable [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Feb 28, 2026

Upper · Passed

Senate Comm - Favorable Recommendation [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Feb 26, 2026

Committee

Senate/ to standing committee [Senate Judiciary, Law Enforcement, and Criminal Justice Committee]

upper

Feb 25, 2026

Introduced

Senate/ 1st reading (Introduced)

upper

Feb 24, 2026

Upper · Passed

House/ passed 3rd reading

upper

Feb 19, 2026

Lower · Passed

House/ comm rpt/ substituted [House Business, Labor, and Commerce Committee]

lower

Feb 19, 2026

Lower · Passed

House Comm - Favorable Recommendation [House Business, Labor, and Commerce Committee]

lower

Jan 28, 2026

Lower · Passed

House/ lifted from standing committee [House Business, Labor, and Commerce Committee]

lower

Jan 27, 2026

Committee

House/ to standing committee [House Judiciary Committee]

lower

Jan 20, 2026

Introduced

House/ 1st reading (Introduced)

lower

1 primary · 1 co-sponsor