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HB 1339

Secretary of State - As enacted, allows a litigation financier that is not a business entity or partnership to amend or withdraw its registration with the secretary of state by filing a form prescribed by the secretary of state, along with a filing fee of $20. - Amends TCA Title 47, Chapter 16.

114th Regular Session (2025-2026) Introduced by William Lamberth

Tennessee allows individual litigation financiers to amend or withdraw Secretary of State registration via $20 form filing, clarifying administrative procedures for third-party lawsuit funders.

Comp. became Pub. Ch. 271
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Bill Summary · HB 1339

Legislative bill overview

HB 1339 allows litigation financiers that are not organized as business entities or partnerships to amend or withdraw their registration with Tennessee's Secretary of State by submitting a prescribed form and paying a $20 filing fee. The bill modifies Tennessee Code Annotated Title 47, Chapter 16, which governs litigation financing registration and regulation.

Why is this important

Litigation financing—where third parties fund lawsuits in exchange for a portion of settlement or judgment proceeds—has grown significantly. This bill clarifies administrative procedures for individual or sole-proprietor litigation financiers to update their registration status, reducing potential compliance gaps and ensuring regulatory oversight remains current.

Potential points of contention

  • Scope of "litigation financier": The definition and activities covered under litigation financing regulation may be unclear, potentially affecting who must register and comply.
  • Minimal oversight mechanism: The low $20 filing fee and simple amendment process may not provide sufficient deterrent or resources for enforcement of litigation financing regulations.
  • Incomplete regulatory framework: The bill addresses withdrawal/amendment procedures but doesn't clarify disclosure requirements, conflict-of-interest rules, or consumer protections specific to non-business-entity financiers.

Compiled from official sources — confirm details with the bill’s official record.

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