Law bars certain foreign-backed lawsuit funding starting January 2027

People and organizations cannot enter covered lawsuit funding agreements with a prohibited foreign source or with money supplied by one. Covered agreements give outside funders a stake in civil lawsuit proceeds. Prohibited sources include federally listed foreign adversaries and people or organizations with specified ties to covered countries, current or past sanctions targets, or designated foreign terrorist organizations. The ban covers direct and indirect funding, even when a prohibited source supplies only part of the money. Exceptions cover consumer legal funding, certain lawyer payment arrangements, health care payment arrangements, loans meeting the repayment rules, and existing promises to defend or cover a party's losses. Excluded lawyer arrangements must follow state lawyer conduct rules. Excluded loans cannot depend on the case outcome or an outcome within a portfolio containing the case and involving the same or an affiliated law firm. The ban applies to covered funding agreements put into effect on or after January 1, 2027.

People and organizations covered by the law's definition of a foreign principal cannot register as New Hampshire lobbyists. The ban covers foreign principals under RSA 477:22-b, a separate state law defining covered foreign people and organizations. It does not state a ban on every foreign person or organization. The ban applies to covered foreign clients themselves. Registered lobbyists representing them have separate disclosure duties. The registration ban takes effect January 1, 2027.

Lobbyists must identify covered foreign clients in filings and disclose when they speak for those clients at public hearings. These duties cover clients defined as foreign principals in RSA 477:22-b. The secretary of state must annually report their registered lobbyists and the relevant countries to legislative leaders and the governor. Registration filings and lobbying statements must identify the client's covered foreign status and the relevant country. At legislative committee meetings or other public hearings, registered lobbyists speaking for these clients must identify themselves for the record and disclose that they represent a covered foreign client or country. Registration disclosures begin at 12:01 a.m. on January 1, 2027. The other disclosure and reporting duties take effect that day.