Amended HB 1160 clears committee

A version of a local legislator’s bill to place limits on civil proceeding advance payment contracts advanced Wednesday.

State Rep. Matt Lehman's House Bill 1160 passed unanimously out of the Senate Judiciary Committee after amendments to narrow what organizations and individuals its limitations will apply to and to clarify what information can be shared.

Lehman (R-Berne), who represents the northern third of Jay County along with Adams and Wells counties, explained during a committee hearing last week that the main goals of the bill were to keep foreign money out of the litigation process, prohibit funders from accessing proprietary data and bar funders from influencing the direction of a lawsuit. (Civil proceeding advance payment contracts involve an outside entity providing funding to support a civil lawsuit.)

The original bill would have banned any foreign investment in civil lawsuits.

As amended Wednesday, the bill would ban only foreign countries and entities of concern as indicated by the federal Office of Foreign Assets Control or the U.S. Secretary of State. It would also not apply to non-profit organizations.

The amendments also clarify that information that cannot be shared is limited to details subject to a court order to seal or protect.

Asked by Sen. Greg Taylor (D-Indianapolis), who had extensive questions about the bill last week, whether he could support the bill as amended, Lehman said he would need more time to look at the changes. However, he said he still has concerns about allowing any foreign entity to invest in civil litigation.

Sen. Aaron Freeman (R-Indianapolis) said he was apprehensive about the bill but would support it as amended. He said he would not vote for it in its original form.

During last week’s hearing on the bill, representatives from the Insurance Institute of Indiana, Indiana Chamber of Commerce and Indiana Manufacturers Association testified in favor of the bill while Brent Huber of Indianapolis law firm Ice Miller testified against.

The amended bill passed the committee 11-0, with Sen. Lonnie Randolph (D-East Chicago) noting that while he voted in favor in order to move the legislation forward he still has reservations and might reconsider his vote on the House floor.

The bill now moves to the House floor for second reading.