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

MISSISSIPPI LEGISLATURE

2026 Regular Session

To: Judiciary, Division A

By: Senator(s) Wiggins

Senate Bill 2747

(As Sent to Governor)

AN ACT TO REQUIRE A FOREIGN THIRD-PARTY LITIGATION FUNDER TO
DISCLOSE CERTAIN INFORMATION TO THE ATTORNEY GENERAL; TO REQUIRE SUCH
DISCLOSURE IN WRITING TO THE ATTORNEY GENERAL; TO REQUIRE  THE DISCLOSURE NO
MORE THAN 30 DAYS AFTER EXECUTION OF THE AGREEMENT; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1.
(1)  The following words and phrases shall have the meanings defined in this
section, as follows:

(a)
"Foreign entity of concern" means a partnership, association,
corporation, organization, or other combination of persons:

(i)
Organized or incorporated in a foreign country of concern;

(ii)
Owned or controlled by the government, a political subdivision, or a political
party of a foreign country of concern;

(iii)
That has a principal place of business in a foreign country of concern; or

(iv)
That is owned, organized, or controlled by or affiliated with a foreign
organization that has been:

1.
Placed on the federal Office of Foreign Assets Control specially designated
nationals and blocked persons list; or

2.
Designated by the United States Secretary of State as a foreign terrorist
organization.

(b)
"Foreign person" means:

(i)
An individual who is not a citizen of the United States or an alien lawfully
admitted for permanent residence in the United States and is a citizen of a
foreign country of concern;

(ii)
An unincorporated association, of which a majority of members are not citizens
of the United States and are citizens of a foreign country of concern; or

(iii)
A corporation that is incorporated in a foreign country of concern.

(c)  "Foreign
third-party litigation funder" means a foreign person, foreign entity of
concern, or foreign sovereign wealth fund other than the named parties, counsel
of record, or law firm of record, that is a third-party litigation funder.

(d)  "Litigation
expenses" means costs typically incurred in the course of civil
litigation, including, but not limited to, filing fees, expert witness fees,
transcript fees, court costs, travel expenses, and office overhead, but not
including funds intended for use by a party for personal or familial expenses,
such as food, rent, mortgage payments, car payments, and medical bills.

(e)  "Third-party
litigation funder" means any person or entity that provides funding
intended to defray litigation expenses or the financial impact of a negative
judgment related to a civil action and has the contractual right to receive or
make any payment that is contingent on the outcome of an identified  civil
action by settlement, judgement, or otherwise, or on the outcome of any matter
within a portfolio that includes the action and involves the same counsel or
affiliated counsel.  This term does not apply to:  (i) the named parties,
counsel of record, or law firm of record providing funding intended to defray
litigation expenses related to the civil action, (ii) a person or entity
providing funding solely intended to pay costs of living or other personal or
familial expenses during the pendency of such civil  action where such funds
are not used to defray litigation expenses, (iii) counsel of record, or law
firm of record, or any referring counsel providing legal services on a
contingency fee basis or to advance his or her client's legal costs where the
services or costs are provided by counsel of record or law firm of record in
accordance with the Rules of Professional Conduct, (iv) a health insurer,
medical provider, or assignee that has paid, is obligated to pay, or is owed
any sums for health care for an injured person under the terms of a health
insurance plan or other agreement, (v) a financial institution providing loans
made directly to a party, counsel of record, or a law firm of record when
repayment of the loan is not contingent upon the outcome of such civil action
or on the outcome of any matter within a portfolio that includes such civil
action and involves the same  counsel or affiliated counsel, (vi) any person or
entity providing funding to a nonprofit legal organization that represents
clients on a pro bono, no-cost basis, if the nonprofit legal organization seeks
only injunctive or declaratory relief on behalf of its clients.  This part does
not affect the award of costs or attorney's fees to a nonprofit legal
organization in the pro bono, no-cost pursuit of injunctive relief.

(2)  In any civil action in
which a foreign third-party litigation funder provides funds intended to defray
litigation expenses or the financial impact of a negative judgment and the
source or sources of its funding includes a foreign entity of concern, the
third-party litigation funder shall meet all of the following requirements:

(a)  Disclose in
writing to the Attorney General the name, the address, and citizenship or the
country of incorporation or registration of any foreign entity of concern that
has a right to receive or an obligation to make any payment that is contingent
on the outcome of the civil action, or portfolio that includes the civil action
and involves the same counsel of record or affiliated counsel, by settlement,
judgment, or otherwise.

(b)  Disclose in
writing to the Attorney General the name, address, citizenship or country of
incorporation or the registration of any foreign entity of concern that has
received or is entitled to receive proprietary information or information
affecting national security interests obtained as a result of the funding
agreement for such civil action.

This disclosure does not
pertain to information received by a party to the action, counsel of record, or
law firm of record.

(c)  Produce to the
Attorney General a copy of any agreement creating a contingent right described
in this section.

(3)  The disclosure
and certification required by this section shall be made no later than thirty
(30) days after execution of any agreement or the date on which the civil
action is filed.

(4)  A party who enters into
an agreement described in this section after the date on which the civil action
is filed shall make the disclosure required by this section no later than
thirty (30) days after being served.

SECTION 2.  This act
shall take effect and be in force from and after July 1, 2026.