South Carolina H 4521: Rose Butler retirement

Bill Text

2025-2026 Bill 4521 Text of Previous Version (May. 06, 2025) - South Carolina Legislature Online 

South Carolina General Assembly
126th Session, 2025-2026

Bill 4521

Indicates Matter Stricken
Indicates New Matter

(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A bill

TO AMEND THE SOUTH CAROLINA CODE OF LAWS 
BY ENACTING THE "SOUTH CAROLINA TRANSPARENCY IN CONSUMER LEGAL FUNDING ACT" BY 
ADDING CHAPTER 31 TO TITLE 37 SO AS TO PROMOTE CONSUMER PROTECTIONS RELATED TO 
CONSUMER LEGAL FUNDING TRANSACTIONS, TO ESTABLISH THAT CERTAIN TRANSACTIONS 
MUST BE SUBJECT TO STATE REGULATION AND SET FORTH REQUIREMENTS REGARDING 
DISCLOSURE, REGISTRATION, FUNDING, LIMITATIONS, AND VIOLATIONS.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 
1. This act may 
be cited as the "South Carolina Transparency in Consumer Legal Funding Act."

SECTION 2. Title 37 of the S.C. Code is 
amended by adding:

CHAPTER 31

Transparency 
in Consumer Legal Funding

 Section 
37-31-100. As used in this chapter:

 (1) "Advertise" means publishing or 
disseminating any written, oral, electronic, or printed communication or any 
communication by means of recorded telephone messages or transmitted or 
broadcast on radio, television, the internet, or similar communications media, 
including audio recordings, film strips, motion pictures and videos, published, 
disseminated, circulated, or placed before the public, directly or indirectly, 
for the purpose of inducing a consumer to enter into a consumer litigation 
funding contract.

 (2) "Charges" means the amount of 
money to be paid to the consumer legal funding company, by or on behalf of the 
consumer, above the funded amount provided by or on behalf of the consumer 
legal funding company to a consumer. Charges include all administrative, origination, 
underwriting, or other fees, including interest, no matter how denominated.

 (3) "Consumer legal funding" means a 
nonrecourse transaction in which a consumer legal funding company purchases and 
a consumer assigns to the company a contingent right to receive an amount of 
the potential proceeds of any recovery, including a settlement or judgment, in 
the consumer's legal claim.

 (4) "Consumer legal funding company" 
or "company" means a person or entity that enters into a consumer legal funding 
contract with a consumer. This term does not include:

 (a) an immediate family member of the 
consumer;

 (b) a bank, lender, financing entity, 
or other special purpose entity:

 (i) that provides financing to a 
consumer legal funding company; or

 (ii) to which a consumer legal 
funding company grants a security interest or transfers any rights or interest 
in a consumer litigation funding contract; or

 (c) an attorney or accountant who 
provides services to a consumer.

 (5) "Consumer" means a natural person 
or estate for a decedent related to wrongful death with a legal claim.

 (6) "Funded amount" means the amount 
of monies provided to, or on behalf of, the consumer in the consumer legal 
funding contract excluding charges.

 (7) "Funding date" means the date on 
which the funded amount is transferred to the consumer by the consumer legal 
funding company including by personal delivery, wire, ACH or other electronic 
means, or mailed by insured, certified, or registered United States mail.

 (8) "Immediate family member" means a 
parent, sibling, child by blood, adoption, or marriage, spouse, domestic 
partner, cohabitant, stepchild, immediate in-law, aunt, uncle, first cousin, 
grandparent, or grandchild.

 (9) "Legal claim" means a civil claim 
or cause of action.

 (10) "Resolution date" means the 
date the funded amount, plus the agreed upon charges, are delivered to the 
consumer legal funding company by the consumer, the consumer's attorney, or 
otherwise.

 Section 
37-31-110. (A) All consumer legal 
funding contracts shall meet the following requirements:

 (1) the contract shall be written in a 
clear manner using words with common, everyday meanings to enable a reasonable 
consumer to read and understand the terms of the contract without having to 
obtain the assistance of a professional;

 (2) the contract shall be completely 
filled in when presented to the consumer for signature;

 (3) the contract shall contain, in twelve-point 
bold type font, a right of rescission, allowing the consumer to cancel the 
contract without penalty or further obligation if, within ten business days 
after the funding date, the consumer returns to the consumer legal funding 
company the full amount of the disbursed funds;

 (4) the contract shall contain the 
initials of the consumer on each page;

 (5) the contract shall contain a 
statement that there are no fees or charges to be paid by the consumer other 
than what is disclosed on the disclosure form;

 (6) in the event the consumer seeks 
more than one legal funding contract from the same company, the contract