Georgia Senate bill by author Sen. Kennedy regulating third-party litigation financing passes House and Senate

Passed bill authored by State Sen. John F. Kennedy aims to regulate third-party litigation financing in Georgia and won approval in both chambers, focusing on registration, disclosure, and compliance requirements, according to the Georgia State Senate.

It passed both chambers as of Monday, March 31, clearing the House by a vote of 120-42 and the Senate by a vote of 52-0.

The bill, introduced as SB69 on Thursday, Jan. 30 during the 2025 regular session of the 158th General Assembly, was formally described as: ’”Georgia Courts Access and Consumer Protection Act”; enact’.

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill, known as the “Georgia Courts Access and Consumer Protection Act,” aims to regulate third-party litigation financing in Georgia. It establishes a new chapter in the state’s banking and finance regulations, requiring litigation financiers to register with the Department of Banking and Finance. The bill prohibits entities affiliated with foreign persons or sovereign wealth funds from acting as litigation financiers and outlines requirements for registration, disclosure, and compliance. Litigation financing agreements must be documented in written contracts that include specific disclosures and indemnification provisions, and financiers are prohibited from directing legal proceedings or receiving compensation beyond agreed terms. The bill also amends state laws to permit the discovery of litigation financing agreements in civil actions and modifies existing motor vehicle safety belt regulations. It becomes effective on January 1, 2026, except for certain provisions effective upon the governor’s approval.

In the Senate, 20 Democrats and 32 Republicans voted in favor of the bill, with no opposition.

Meanwhile, in the House, 28 Democrats and 92 Republicans voted in favor, while 41 Democrats and one Republican voted against it.

The bill was co-sponsored by Rep. James Burchett (Republican-176th), Sen. Lee Anderson (Republican-24th), and Sen. Max Burns (Republican-23rd), along with 24 other co-sponsors.

Kennedy graduated from Mercer University in 1987 with a BA and again in 1990 from Mercer University with a JD.

Kennedy, a Republican, was elected to the Georgia State Senate in 2015 to represent the state’s 18th Senate District, replacing previous state senator Cecil Staton.

The bill was signed into law by Gov. Brian Kemp on Monday, April 21.

In Georgia, the legislative process begins when a lawmaker, often at a constituent’s request, works with the Office of Legislative Counsel to draft a bill. After filing with the Clerk of the House or Secretary of the Senate, the bill receives its first reading and is sent to a committee, where most of the debate and fact-finding takes place. If approved, it advances to the floor for a third reading, debate, and a vote. To become law, the bill must pass both chambers, sometimes through a conference committee if versions differ, before being sent to the governor. The governor then has six days during session—or 40 days after adjournment (Sine Die)—to sign, veto, or allow the bill to become law without a signature. The Georgia General Assembly meets annually for a 40-day session beginning the second Monday in January.

Information in this article was obtained from the Georgia State Senate. The source data can be found here.