Monitoring the Session

SB 3025

lawsuit funding deals get disclosed once the court writes rules

Died in committee

Verdict: No flags

No flagsInitial review
Sen. Brent HagenbuchRSenate 30

Initial review · graded Oct 20, 2026 · Headline, summary and grade are analysis of the bill text, not a finding about any person · How we grade

Caption

relating to mandatory disclosure of third-party litigation financing agreements.

Caption from analyzed text · version I.

Summary

Deadline for those rules: December 31, 2019. Which has already passed.

The bill orders the Texas Supreme Court to write court rules that require the parties in a civil lawsuit to be told about any outside funding deal where the funder is repaid only out of what the case wins. It reaches people who sue, their lawyers, and outside investors who bankroll lawsuits, but it leaves out ordinary loans to law firms that must be repaid either way and normal contingent-fee deals between lawyers and clients. Once the rules exist, these funding agreements must be disclosed in new civil cases filed after the rules take effect, though the bill's deadline for the court to act is December 31, 2019, a date that has already passed.

Labels

Labels: NEVER GOT A HEARING. Filed Mar 14, 2025 and referred to the Senate State Affairs committee. No public hearing. The bill died.

Receipt

The receipt

89R-SB3025 · 2025-03-14

SOLD BY

ITEM

relating to mandatory disclosure of third-party litigation financing agreements.

WHAT IT DOES

Deadline for those rules: December 31, 2019. Which has already passed.

The bill orders the Texas Supreme Court to write court rules that require the parties in a civil lawsuit to be told about any outside funding deal where the funder is repaid only out of what the case wins. It reaches people who sue, their lawyers, and outside investors who bankroll lawsuits, but it leaves out ordinary loans to law firms that must be repaid either way and normal contingent-fee deals between lawyers and clients. Once the rules exist, these funding agreements must be disclosed in new civil cases filed after the rules take effect, though the bill's deadline for the court to act is December 31, 2019, a date that has already passed.

CHARGES

[ ] NONE FOUND

TOTAL

No fiscal note in the loaded record.

HISTORY

  1. Received by the Secretary of the Senate
  2. Filed
  3. Read first time
  4. Referred to State Affairs
FILED UNDER

SPEECH AND LAWFARE

THE TEXT

“The supreme court shall adopt rules to provide for the mandatory disclosure of third-party litigation financing agreements to the parties in a civil action”…

Bill text, introduced version (I)

The bill changes the rules for civil lawsuits by forcing disclosure of outside investors who fund a case in exchange for a share of the winnings.

No flags

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

CAMPAIGN PAID FOR BY

Donors

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 27, 2024 to Jun 15, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$50,000.00

Texans for Lawsuit Reform PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Sep 8, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010787, 101032653.

Denton County Republican Lincoln Cabinet PAC$25,000.00

Denton County Republican Lincoln Cabinet PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Apr 8, 2026 to Apr 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101058859.

John Kleinheinz$25,000.00
Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$50,000.00

Cash
$50,000.00
Paid by others
$0.00
Total
$50,000.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team
Sources

Derived itemized flow · Jun 23, 2025 to Sep 8, 2025. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101010787, 101032653.

×

Denton County Republican Lincoln Cabinet PAC

$25,000.00

Cash
$25,000.00
Paid by others
$0.00
Total
$25,000.00

Also funds 1 other sitting lawmakers.

Derived recipient stock · Apr 8, 2026 to Apr 21, 2026. State data as of Nov 4, 2026.

Name match, not a verified identity: normalized filed name and state.

Sources

Derived itemized flow · on Apr 21, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101058859.

Votes

No floor vote loaded for this bill.

Fiscal

No fiscal note in the loaded record.

How this was graded

Analysis of text version I by claude-opus-5-5, Oct 20, 2026, against the published rubric.

Sources

Texas Senate · Filed Mar 14, 2025

04/07/2025 S Referred to State Affairs

Texas Legislature Online · Introduced

Data snapshot Oct 26, 2026 at 4:20 AM CDT. Grades, charges, quotes and corrections follow the published record.

Senate committee · State Affairs · Final status: Died in committee

Subjects

Civil Remedies & Liabilities

Courts--Appellate

Lawyers

SUPREME COURT

Text

The text as introduced · 359 words

By: Hagenbuch
S.B. No. 3025

A BILL TO BE ENTITLED

AN ACT

relating to mandatory disclosure of third-party litigation

financing agreements.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter A, Chapter 22, Government Code, is

amended by adding Section 22.021 to read as follows:

Sec. 22.021. DISCLOSURE OF THIRD-PARTY LITIGATION

FINANCING. (a) In this section:

(1) "Financing" means the provision of monetary or

in-kind support to a person or group of persons who have or will

file or prosecute a civil action, including a payment to an attorney

who represents the person or group, a payment to a fact or expert

witness, a payment of the costs of the civil action, or the

provision of funds or credit to be used in the future to support the

civil action. The term includes the provision of monetary or

in-kind support, regardless of whether the support is called a

loan, an advance, a purchase, or another term.

(2) "Third-party litigation financing" means the

provision of financing with repayment being conditioned on and

sourced from the person's or group's proceeds from the civil action,

regardless of whether the proceeds are obtained through collection

of a judgment, payment of a settlement, or otherwise. The term does

not include:

(A) an extension of credit to any attorney or law

firm when the obligation of the attorney or law firm to repay the

loan is required by the loan agreement and is not contingent on the

outcome of a specified civil action or portfolio of civil actions;

or

(B) a contingent fee arrangement between an

attorney or law firm and a client.

(b) The supreme court shall adopt rules to provide for the

mandatory disclosure of third-party litigation financing

agreements to the parties in a civil action in connection with which

third-party litigation financing is provided.

SECTION 2. The Supreme Court of Texas shall adopt rules

under Section 22.021, Government Code, as added by this Act, not

later than December 31, 2019. The rules apply only to a civil

action commenced on or after the effective date of the rules.

SECTION 3. This Act takes effect September 1, 2025.