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Committee adopts substitute and unanimously advances transparency changes for litigation funders (HB 280)

Utah House Business, Labor and Commerce Committee · February 18, 2026

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Summary

Lawmakers adopted a substitute to expand registration and transparency to commercial third‑party litigation funders after stakeholder negotiations. The committee unanimously adopted the substitute and recommended HB 280 favorably.

Representative Dunnigan and stakeholders described HB 280 as an update to Utah’s litigation financing law to require registration and reporting for commercial litigation funders in addition to consumer funders. The sponsors said the measure improves transparency without unduly restricting access to financing used to advance meritorious claims.

Industry representatives including the American Legal Finance Association supported the substitute as a ‘‘pro‑consumer’’ framework. The International Legal Finance Association (ILFA) urged consideration of commercial‑funder timing and confidentiality concerns — recommending registration accommodate transactions that must close swiftly and confidential reporting redactions where appropriate. Utah Association for Justice said it worked with sponsors and did not oppose the bill.

Committee action: the committee adopted the second substitute and then voted unanimously to recommend the substitute bill favorably, while sponsors and industry participants noted they will continue to refine registration and reporting procedures.

What’s next: HB 280 moves forward with a substitute focused on registration and transparency for commercial funders; sponsors signaled continued engagement with industry groups to balance disclosure and commercial confidentiality.