Assemblymember Zbur Bill to Strengthen Consumer Protection and Legal Ethics Advances Out of First Committee

AB 2039 increases accountability for attorney misconduct, protects whistleblowers, and regulates attorney-client financial arrangements.

SACRAMENTO, CA - Democratic Caucus Chair and Assemblymember Rick Chavez Zbur (D-Hollywood) today announced AB 2039, legislation to strengthen consumer protections and reinforce ethical accountability within California's legal profession, advanced out of the Assembly Committee on Judiciary. 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.

"Attorneys are fundamental players who protect consumers, safeguard our rights and seek justice in our legal system. Our system of justice depends on lawyers conducting themselves with integrity and in accordance with the rules. When that doesn't happen, achieving justice is threatened," said Assemblymember Rick Chavez Zbur. "AB 2039 strengthens safeguards against misconduct, protects whistleblowers who report wrongdoing, and ensures Californians can trust that the attorneys representing them are acting ethically and in their best interest."

Recent reporting by the Los Angeles Times has highlighted allegations involving attorneys engaged in unlawful client referral practices, sometimes known as "capping," in which compensation is exchanged for directing clients to specific attorneys. While such conduct is already illegal, current law does not always ensure consistent or automatic consequences following criminal convictions.

AB 2039 addresses these gaps by establishing stronger enforcement mechanisms and additional protections to ensure misconduct is reported and addressed promptly.

Specifically, AB 2039 will:

• Strengthen mandatory disbarment proceedings for attorneys convicted of paying or receiving compensation for client referrals.
• Establish whistleblower protections for attorneys, staff, and others who report attorney misconduct.
• Regulate attorney-client loans and financial advances to prevent conflicts of interest and protect vulnerable clients.

"If we are going to demand that corporations, government, and powerful institutions be held accountable, we have to be willing to hold ourselves to that same standard - and we are," said Doug Saeltzer, President, Consumer Attorneys of California. "We are grateful to Asm. Zbur for carrying AB 2039, and to the Assembly Judiciary Committee for advancing this bill today. Recent LA Times investigations point to serious misconduct in our profession, and we are taking action. AB 2039 ensures that attorneys convicted of illegally paying for cases face mandatory disbarment, protects whistleblowers who come forward, and closes the enforcement gaps that allowed bad actors to operate without consistent consequences. Consumer safety is paramount in the legal industry, and that's what this measure ensures."

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, [email protected]