Zbur Bill Strengthening Consumer Protections and Legal Ethics Heads to Governor's Desk

AB 2039 Cracks Down on Illegal Client Solicitation, Protects Whistleblowers, and Establishes Safeguards for Attorney-Client Financial Agreements

SACRAMENTO, CA - Democratic Caucus Chair and Assemblymember Rick Chavez Zbur (D-Hollywood) announced today that AB 2039, legislation to protect consumers and strengthen accountability within California's legal profession, has passed the Legislature and is headed to Governor Gavin Newsom's desk. Sponsored by Consumer Attorneys of California, AB 2039 passed the Senate with bipartisan support before receiving final concurrence in the Assembly. The legislation strengthens consequences for attorneys convicted of illegal client referral practices, protects individuals who report attorney misconduct from retaliation, and establishes safeguards governing loans and financial advances between attorneys and their clients.

"Californians who turn to our legal system - often during some of the most difficult moments of their lives - deserve to know that the attorneys representing them are acting in their best interests," said Assemblymember Rick Chavez Zbur. "AB 2039 strengthens accountability for those who exploit vulnerable people, protects those who have the courage to report misconduct, and puts stronger safeguards in place to protect consumers from financial exploitation. I'm proud to see this legislation reach the Governor's desk with bipartisan support."

California law already prohibits illegal client referrals, commonly known as "capping," and regulates conflicts of interest involving attorney-client financial arrangements. However, recent allegations of attorney misconduct have highlighted gaps in enforcement and consumer protections.

Reporting by the Los Angeles Times detailed allegations involving attorneys and recruiters soliciting vulnerable individuals as clients, including allegations of payments in exchange for participation in claims. Such misconduct can harm consumers, undermine public confidence in the legal profession, and divert resources away from legitimate victims seeking justice.

AB 2039 strengthens California law by:

• Requiring mandatory summary disbarment proceedings for felony illegal capping convictions and misdemeanor convictions involving knowing financial gain;
• Protecting whistleblowers who report attorney misconduct from termination, harassment, blacklisting, and other forms of retaliation; and
• Establishing consumer protections for attorney-client loans and financial advances, including separate agreements, informed consent requirements, protections against hidden fees or interest, and a cooling-off period before signing.

"CAOC has always championed strong ethical standards for attorneys - it's core to who we are and what we fight for," said Doug Saeltzer, President, Consumer Attorneys of California. "Ensuring integrity within the legal profession isn't just something we talk about - it's something we act on because consumer protection is why we exist. We are proud to partner with Asm. Zbur on AB 2039, which builds on the two strong ethics bills we passed in 2025. Having passed both houses of the Legislature with bipartisan support, we urge Governor Newsom to sign AB 2039 into law. If we are going to demand that corporations, government, and powerful institutions be held accountable, we must be - and we are - willing to hold ourselves to that same standard."

By strengthening enforcement, encouraging individuals to report misconduct, and establishing clearer protections for consumers entering financial arrangements with their attorneys, this bill will help deter unethical practices while reinforcing trust in California's legal system. AB 2039 now heads to Governor Newsom for consideration.

Assemblymember Rick Chavez Zbur serves as the Democratic Caucus Chair for the California State Assembly and represents the 51st Assembly District, which includes Universal City, Hollywood, Hancock Park, West Hollywood, Beverly Hills, Westwood, West Los Angeles, Santa Monica, and other portions of Los Angeles.

CONTACT: Vienna Montague, (916) 319-2051, [email protected]