Ohio Governor DeWine signed House Bill 105 into law last week, delivering a critical win for small business owners facing third-party litigation funding. This new legislation forces transparency on outside groups funding lawsuits and, most importantly, bans foreign entities from investing in or influencing Ohio courts [1][10]. For Black entrepreneurs and independent business owners, this means your legal battles won’t be secretly manipulated by overseas financial interests looking to profit from local disputes.
What HB 105 Actually Changes for Your Business
The core of this law requires all third-party litigation funding companies to register with the Ohio Attorney General before conducting business in the state [1][2]. These funders must now disclose their funding agreements after a case concludes, ensuring that plaintiffs and business owners know exactly who is backing a lawsuit and what terms they face [1][2]. Previously, these agreements could remain hidden, leaving small business owners vulnerable to predatory funding terms they couldn’t see until a dispute escalated.
The bill also establishes clear definitions for funding companies and plaintiffs, setting specific terms for when a violation occurs [2]. This creates a legal framework that protects consumers and business owners from being taken advantage of by unregulated funders [2]. NFIB Ohio, which advocated heavily for this bill, identified it as a top legislative priority to bring accountability to the litigation funding industry [1].
Why Blocking Foreign Funders Matters Now
House Bill 105 includes a first-in-the-nation ban on all foreign governments, foreign corporations, and foreign investors participating in third-party litigation funding [10]. This prevents outside entities from secretly influencing Ohio’s legal system with capital that has no stake in our local economy [10]. State Representative Meredith Craig, who sponsored the bill, emphasized that this ensures no foreign entity can invest in or influence our courts [10].
NFIB State Director Jared Weiser confirmed that Ohio’s small business community just scored a major victory with this passage, bringing greater transparency and accountability to outside lawsuit funding [6]. The bill was sponsored by Reps. Meredith Craig and Jim Thomas, along with Senators Steve Wilson and George Lang, and NFIB key-voted for it this session [1].
What You Can Do Right Now
If you operate a small business in Ohio, monitor any legal disputes you face for third-party funding involvement. The new registration requirement means you can now verify if a funding company is legitimate by checking with the Ohio Attorney General [1]. Stay informed about how this transparency affects your legal strategy, as funders must now disclose agreements post-case [1]. Watch for NFIB Ohio updates on how this law impacts litigation trends in your sector, as the organization continues to advocate for small business protections statewide [1].
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