AB 2039 Targets Illegal Client Solicitation, Protects Whistleblowers, and Increases Transparency in Attorney-Client Financial Agreements
SACRAMENTO, CA – Democratic Caucus Chair and Assemblymember Rick Chavez Zbur (D–Hollywood) today announced AB 2039, legislation to protect consumers and strengthen legal ethics in California, advanced out of the Assembly with bipartisan support and no "no" votes and now moves to the Senate. Sponsored by Consumer Attorneys of California, this bill closes key enforcement gaps by strengthening disciplinary consequences for attorneys convicted of illegal client referral practices, creating whistleblower protections for individuals who report misconduct, and establishing consumer safeguards for financial advances between attorneys and their clients.
"Californians deserve a legal system that operates with integrity, transparency, and accountability," said Assemblymember Rick Chavez Zbur. "Unethical conduct not only harms consumers — it undermines confidence in our justice system and diverts time and resources away from real victims seeking justice. AB 2039 strengthens protections for consumers, cracks down on unethical conduct that undermines public trust in the legal profession, and helps ensure bad actors cannot continue exploiting vulnerable people for financial gain."
Recent reporting by the Los Angeles Times detailed allegations of unethical attorney conduct, including illegal client solicitation schemes targeting vulnerable individuals and the filing of potentially fraudulent claims that diverted resources away from legitimate victims and cases. Under current law, practices such as illegal client referrals, commonly known as "capping," are already prohibited. However, inconsistent enforcement and gaps in accountability have allowed misconduct to persist.
AB 2039 addresses those gaps by:
- Requiring mandatory summary disbarment proceedings for felony illegal capping convictions and misdemeanor convictions involving knowing financial gain;
- Prohibiting retaliation against whistleblowers who report attorney misconduct; and
- Requiring clear, separate agreements and informed consent protections for attorney-client loans and financial advances.
"Today's vote sends a clear message: accountability in the legal profession is not optional," said Doug Saeltzer, President, Consumer Attorneys of California. "AB 2039 closes real gaps — mandatory disbarment proceedings for illegal capping convictions, whistleblower protections for those who come forward, and clear safeguards around attorney-client financial arrangements. Californians who turn to the legal system deserve to know that bad actors face real consequences. We're grateful to Assemblymember Zbur for his leadership, and we'll keep pushing until this is signed into law."
Together, these reforms are designed to improve accountability within the legal profession, deter unethical conduct, and reinforce public confidence in California's legal system.
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, Vienna.Montague@asm.ca.gov