SF 586: Relating to third-party litigation funding and including applicability provisions

What it does

This bill creates the third-party litigation funding transparency Act, which provides the terms, conditions, and disclosures related to consumer litigation funding transactions. The bill defines “consumer litigation funding” to mean a nonrecourse transaction in which a consumer litigation funding company purchases, and a consumer assigns to the company, a contingent right to receive an amount of the potential proceeds of settlement, judgment, award, or verdict obtained in the consumer’s legal claim.

Senate subcommittee · named January 21, 2026

• Sen. Mike Bousselot (R) · mike.bousselot@legis.iowa.gov
• Sen. Matt Blake (D) · matt.blake@legis.iowa.gov
• Sen. Jason Schultz (R) · jason.schultz@legis.iowa.gov

Lobbying · 19 for, 3 against

For: Alliance for Responsible Consumer Legal Funding; American Legal Finance Association; American Property Casualty Insurance Association (APCIA); Bayer U.S. LLC; COPIC; Grinnell Mutual Reinsurance Company; Helena Agri-Enterprises, LLC; Iowa Association of Business and Industry (ABI); Iowa Defense Counsel Association; Iowa Independent Physician Group; Iowa Insurance Associates; Iowa Insurance Institute; and 7 more

Against: American Legal Finance Association; International Legal Finance Association; Iowa Academy of Trial Lawyers

In plain words

1. March 10, 2025Filed in the Senate
2. March 10, 2025Approved by the Senate committee
3. March 18, 2025Sent to the Senate Ways and Means committee
4. March 26, 2025Senate subcommittee named: Rowley, Dotzler and Sweeney
5. April 9, 2025Subcommittee recommended passing it with changes
6. January 14, 2026Sent to the Senate Judiciary committee
7. January 21, 2026Senate subcommittee named: Bousselot, Blake and Schultz
8. February 4, 2026Subcommittee recommended passing it
9. February 23, 2026Approved by the Senate committee, and given a new number: SF 2419