Florida Senate - 2026                        COMMITTEE AMENDMENT
       Bill No. SB 1396
       
       
       
       
       
       
                                Ì707190"Î707190                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  02/03/2026           .                                
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       The Committee on Rules (Burton) recommended the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 118 - 225
    4  and insert:
    5  Professional Conduct or equivalent professional conduct rules
    6  applicable in the attorney’s licensing jurisdiction.
    7         (c)An entity with a preexisting contractual obligation to
    8  indemnify or defend a party to a civil action, an administrative
    9  proceeding, a claim, or other legal proceeding.
   10         (d)A health insurer that has paid, or is obligated to pay,
   11  any sums for health care for an injured person under the terms
   12  of a health insurance plan or agreement.
   13         (e)The repayment of a financial institution as defined in
   14  s. 655.005 for loans made directly to a party to a civil action,
   15  an administrative proceeding, a claim, or other legal
   16  proceeding, or to such party’s attorney, when repayment of the
   17  loan is not contingent upon the outcome of such action, claim,
   18  or proceeding or on the outcome of any matter within a portfolio
   19  that includes such action, claim, or proceeding and involves the
   20  same counsel or affiliated counsel.
   21         (f)Funding provided to a nonprofit organization exempt
   22  from federal income tax under s. 501(c)(3) of the United States
   23  Internal Revenue Code, provided that the nonprofit organization
   24  uses the funding only to provide pro bono legal representation
   25  on behalf of a client or to engage in litigation on behalf of
   26  itself, its members, or a client and does not seek punitive
   27  damages, regardless of whether the nonprofit organization seeks
   28  an award of costs or attorney fees.
   29         (g) Funding provided by a nonprofit organization exempt
   30  from federal income tax under s. 501(c)(3) of the United States
   31  Internal Revenue Code, by grant or otherwise, to cover the costs
   32  and expenses of pro bono legal representation or litigation that
   33  does not seek punitive damages, regardless of whether the
   34  recipient of the funding seeks an award of costs or attorney
   35  fees. The nonprofit organization may, contingent upon the
   36  outcome of the litigation, receive repayment not to exceed the
   37  amount of funding provided.
   38         (h) Funding provided in a foreign class action where the
   39  party domiciled in the United States is a member of the class.
   40         (7)“National security interests” means those interests
   41  relating to the national defense, foreign intelligence and
   42  counterintelligence, international and domestic security, or
   43  foreign relations.
   44         (8)“Proprietary information” means information developed,
   45  created, or discovered by a person, or which became known by or
   46  was conveyed to a person, which has commercial value in the
   47  person’s business. The term includes, but is not limited to,
   48  domain names; trade secrets; copyrights; ideas; techniques;
   49  inventions, regardless of whether patentable, and other
   50  information of any type relating to designs; configurations;
   51  documentation; recorded data; schematics; circuits; mask works;
   52  layouts; source code; object code; master works; master
   53  databases; algorithms; flow charts; formulae; works of
   54  authorship; mechanisms; research; manufacture; improvements;
   55  assembly; installation; intellectual property, including patents
   56  and patent applications; and information concerning the person’s
   57  actual or anticipated business, research, or development or
   58  received in confidence by or for the person from any other
   59  source.
   60         (9)“Sovereign wealth fund” means an investment fund owned
   61  or controlled by a foreign principal or an agent thereof.
   62         69.103Litigation financing agreement; representation of
   63  client interests; adequate representation.—A court may take the
   64  existence of a litigation financing agreement into account:
   65         (1)In a class action lawsuit brought in the courts of this
   66  state, when determining whether a class representative or class
   67  counsel would adequately and fairly represent the interests of
   68  the class.
   69         (2)In actions involving a common question of law or fact
   70  pending before the court which may be or has been consolidated,
   71  when determining whether the lead counsel or any co-lead counsel
   72  would adequately and fairly represent the interests of the
   73  parties to such actions.
   74         69.105Prohibited conduct.—A litigation financier may not:
   75         (1)Direct, or make any decisions with respect to, the
   76  course of any civil action, administrative proceeding, claim, or
   77  other legal proceeding for which the litigation financier has
   78  provided financing, or any settlement or other disposition
   79  thereof. This prohibition includes, but is not limited to,
   80  decisions in appointing or changing counsel, choice or use of
   81  expert witnesses, and litigation strategy. All rights to make
   82  decisions with respect to the course and settlement or other
   83  disposition of the subject civil action, administrative
   84  proceeding, claim, or other legal proceeding remain solely with
   85  the parties to such action, claim, or proceeding and their
   86  counsel of record.
   87         (2)Contract for or receive, whether directly or
   88  indirectly, a larger share of the proceeds of any civil action,
   89  administrative proceeding, claim, or other legal proceeding
   90  financed by a litigation financing agreement than the share of
   91  the proceeds collectively recovered by the plaintiffs to any
   92  such action, claim, or proceeding after the payment of any
   93  attorney fees and costs owed in connection to such action,
   94  claim, or proceeding.
   95         (3)Pay or offer to pay a commission, referral fee, or
   96  other consideration to any person, including an attorney, a law
   97  firm, or a health care practitioner, for referring a person to
   98  the litigation financier.
   99         (4)Assign or securitize a litigation financing agreement,
  100  in whole or in part.
  101         (5)Be assigned rights to or in any civil action,
  102  administrative proceeding, claim, or other legal proceeding for
  103  which the litigation financier provided financing, other than
  104  the right to receive a share of the proceeds of such action,
  105  claim, or proceeding pursuant to the litigation financing
  106  agreement.
  107         69.107 Transparency for foreign litigation financiers.—
  108         (1) If a party to any civil action, administrative
  109  proceeding, claim, or other legal proceeding filed in the United
  110  States, or that party’s counsel of record, has entered into a
  111  litigation financing agreement with a foreign person, foreign
  112  principal, or sovereign wealth fund, the party, or the party’s
  113  counsel of record, must, within 14 days after execution of the
  114  agreement or within 7 days after filing such action, whichever
  115  occurs first, file and serve a notice with the court, agency, or
  116  tribunal, and all other parties to the proceeding, which
  117  identifies:
  118  
  119  ================= T I T L E  A M E N D M E N T ================
  120  And the title is amended as follows:
  121         Delete line 17
  122  and insert:
  123         requiring certain parties to a legal proceeding, or
  124         their counsels of record, which