WeVote
Log In

Bill

Bill

SB 1137

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)

Tennessee allows non-business litigation financiers to easily amend or withdraw Secretary of State registration by filing a form with a $20 fee.

Pub. Ch. 271
#secretaryofstate
0
WeVote Research Nonpartisan
Bill Summary · SB 1137

Legislative bill overview

SB 1137 establishes a streamlined process for non-business entity or non-partnership litigation financiers to amend or withdraw their registration with Tennessee's Secretary of State. The change allows these entities to file a simple form with a $20 fee rather than following potentially more complex procedures. This is a technical administrative update to Tennessee's litigation financing regulatory framework.

Why is this important

Litigation financing—where third parties fund lawsuits in exchange for a percentage of settlements or judgments—is a growing industry that states regulate differently. This bill removes potential barriers for certain litigation financiers to modify their registration status, which could facilitate easier market entry or exit. The low $20 fee suggests the state prioritizes accessibility over generating registration revenue.

Potential points of contention

  • Litigation financing concerns: Some argue litigation financing can incentivize frivolous lawsuits or inflate settlement amounts, though this bill merely eases administrative compliance
  • Regulatory oversight: Simplified amendment/withdrawal procedures might reduce state oversight of who participates in the litigation financing market
  • Entity classification ambiguity: The distinction between "business entities or partnerships" versus other litigation financiers could create gray areas about who qualifies for this streamlined process

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

Sign in to ask a question.