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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 2805 Introduced in Senate (IS)]

<DOC>

118th CONGRESS
  1st Session
                                S. 2805

   To amend chapter 111 of title 28, United States Code, to increase 
 transparency and oversight of third-party funding by foreign persons, 
to prohibit third-party funding by foreign states and sovereign wealth 
                     funds, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           September 14, 2023

  Mr. Kennedy (for himself and Mr. Manchin) introduced the following 
    bill; which was read twice and referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL

 
   To amend chapter 111 of title 28, United States Code, to increase 
 transparency and oversight of third-party funding by foreign persons, 
to prohibit third-party funding by foreign states and sovereign wealth 
                     funds, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Protecting Our Courts from Foreign 
Manipulation Act of 2023''.

SEC. 2. TRANSPARENCY AND LIMITATIONS ON FOREIGN THIRD-PARTY LITIGATION 
              FUNDING.

    (a) In General.--Chapter 111 of title 28, United States Code, is 
amended by adding at the end the following:
``Sec. 1660. Transparency and limitations on foreign third-party 
              litigation funding
    ``(a) Definitions.--In this section--
            ``(1) the term `foreign person'--
                    ``(A) means any person or entity that is not a 
                United States person, as defined in section 101 of the 
                Foreign Intelligence Surveillance Act of 1978 (50 
                U.S.C. 1801); and
                    ``(B) does not include a foreign state or a 
                sovereign wealth fund;
            ``(2) the term `foreign state' has the meaning given that 
        term in section 1603; and
            ``(3) the term `sovereign wealth fund' means an investment 
        fund owned or controlled by a foreign state, an agency or 
        instrumentality of a foreign state (as defined in section 
        1603), or an agent of a foreign principal (as defined in 
        section 1 of the Foreign Agents Registration Act of 1938, as 
        amended (22 U.S.C. 611)).
    ``(b) Disclosure of Third-Party Litigation Funding and Foreign 
Source Certification by Foreign Persons, Foreign States, and Sovereign 
Wealth Funds.--
            ``(1) In general.--In any civil action, each party or the 
        counsel of record for the party shall--
                    ``(A) disclose in writing to the court, to all 
                other named parties to the civil action, to the 
                Attorney General, and to the Principal Deputy Assistant 
                Attorney General for National Security--
                            ``(i) the name, the address, and, if 
                        applicable, the citizenship or the country of 
                        incorporation or registration of any foreign 
                        person, foreign state, or sovereign wealth 
                        fund, other than the named parties or counsel 
                        of record, that has a right to receive any 
                        payment that is contingent in any respect on 
                        the outcome of the civil action by settlement, 
                        judgment, or otherwise;
                            ``(ii) the name, the address, and, if 
                        applicable, the citizenship or the country of 
                        incorporation or registration of any foreign 
                        person, foreign state, or sovereign wealth 
                        fund, other than the named parties or counsel 
                        of record, that has a right to receive any 
                        payment that is contingent in any respect on 
                        the outcome of any matter within a portfolio 
                        that includes the civil action and involves the 
                        same counsel of record or affiliated counsel; 
                        and
                            ``(iii) if the party or the counsel of 
                        record for the party submits a certification 
                        described in subparagraph (C)(i), the name, the 
                        address, and, if applicable, the citizenship or 
                        the country of incorporation or registration of 
                        the foreign person, foreign state, or sovereign 
                        wealth fund that is the source of the money;
                    ``(B) produce to the court, to all other named 
                parties to the civil action, to the Attorney General, 
                and to the Principal Deputy Assistant Attorney General 
                for National Security, except as otherwise stipulated 
                or ordered by the court, a copy of any agreement 
                creating a contingent right described in subparagraph 
                (A); and
                    ``(C) for a civil action involving an agreement 
                creating a right to receive any payment by anyone, 
                other than the named parties or counsel of record, that 
                is contingent in any respect on the outcome of the 
                civil action by settlement, judgment, or otherwise, or 
                on the outcome of any matter within a portfolio that 
                includes the civil action and involves the same counsel 
                or affiliated counsel, submit to the court a 
                certification that--
                            ``(i) the money that has been or will be 
                        used to satisfy any term of the agreement has 
                        been or will be directly or indirectly sourced, 
                        in whole or in part, from a foreign person, 
                        foreign state, or sovereign wealth fund, 
                        including the monetary amounts that have been 
                        or will be used to satisfy the agreement; or
                            ``(ii) that the disclosure and 
                        certification criteria set forth in 
                        subparagraph (A)(iii) and clause (i) of this 
                        subparagraph do not apply to the civil action.
            ``(2) Timing.--
                    ``(A) In general.--The disclosure and certification 
                required by paragraph (1) shall be made not later than 
                the later of--
                            ``(i) 30 days after execution of any 
                        agreement described in paragraph (1); or
                            ``(ii) the date on which the civil action 
                        is filed.
                    ``(B) Parties served or joined later.--A party that 
                enters into an agreement described in paragraph (1) 
                that is first served or joined after the date on which 
                the civil action is filed shall make the disclosure and 
                certification required by paragraph (1) not later than 
                30 days after being served or joined, unless a 
                different time is set by stipulation or court order.
            ``(3) Foreign source disclosure and certification format.--
                    ``(A) In general.--A disclosure required under 
                paragraph (1)(A) and a certification required under 
                paragraph (1)(C) shall--
                            ``(i) be made in the form of a declaration 
                        under penalty of perjury pursuant to section 
                        1746 and shall be made to the best knowledge, 
                        information, and belief of the declarant formed 
                        after reasonable inquiry; and
                            ``(ii) be provided to all other named 
                        parties to the civil action, to the Attorney 
                        General, and to the Principal Deputy Assistant 
                        Attorney General for National Security by the 
                        party or counsel of record for the party making 
                        the disclosure and certification, except as 
                        otherwise stipulated or ordered by the court.
                    ``(B) Supplementation and correction.--Not later 
                than 30 days after the date on which a party or counsel 
                of record for the party knew or should have known that 
                the disclosure required under paragraph (1)(A) or a 
                certification required under paragraph (1)(C) is 
                incomplete or inaccurate in any material respect, the 
                party or counsel of record shall supplement or correct 
                the disclosure or certification.
    ``(c) Prohibition on Third-Party Funding Litigation by Foreign 
States and Sovereign Wealth Funds.--
            ``(1) In general.--It shall be unlawful for any party to or 
        counsel of record for a civil action to enter into an agreement 
        creating a right for anyone, other than the named parties or 
        counsel of record, to receive any payment that is contingent in 
        any respect on the outcome of a civil action or any matter 
        within a portfolio that includes the civil action and involves 
        the same counsel of record or affiliated counsel, the terms of 
        which are to be satisfied by money that has been or will be 
        directly or indirectly sourced, in whole or in part, from a 
        foreign state or a sovereign wealth fund.
            ``(2) Enforcement.--Any agreement entered in violation of 
        paragraph (1) shall be null and void.
    ``(d) Failure To Disclose, To Supplement; Sanctions.--A disclosure, 
production, or certification under subsection (b) is deemed to be 
information required by rule 26(a) of the Federal Rules of Civil 
Procedure and subject to the sanctions provisions of rule 37 of the 
Federal Rules of Civil Procedure.''.
    (b) Technical and Conforming Amendment.--The table of sections 
chapter 111 of title 28, United States Code, is amended by adding at 
the end the following:

``1660. Transparency and limitations on foreign third-party litigation 
                            funding.''.

SEC. 3. REPORT TO CONGRESS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Attorney General shall submit to the Committee 
on the Judiciary of the Senate and the Committee on the Judiciary of 
the House of Representatives a report on the activities involving 
foreign third-party litigation funding in Federal courts, including, if 
applicable--
            (1) the identities of foreign third-party litigation 
        funders in Federal courts, including names, addresses, and 
        citizenship or country of incorporation or registration;
            (2) the identities of foreign persons, foreign states, or 
        sovereign wealth funds (as such terms are defined in section 
        1660 of title 28, United States Code, as added by section 2 of 
        this Act) that have been the sources of money for third-party 
        litigation funding in Federal courts;
            (3) the judicial districts in which foreign third-party 
        litigation funding has occurred;
            (4) an estimate of the total amount of foreign-sourced 
        money used for third-party litigation funding in Federal 
        courts, including an estimate of the amount of such money 
        sourced from each country; and
            (5) a summary of the subject matters of the civil actions 
        in Federal courts for which foreign sourced money has been used 
        for third-party litigation funding.

SEC. 4. APPLICABILITY.

    The amendments made by this Act shall apply to any civil action 
pending on or commenced on or after the date of enactment of this Act.
                                 <all>
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