All Roll Calls
Yes: 171 • No: 28
CaliforniaAB 9312025-2026 Regular SessionHouseWALLET
State Bar Act: attorney duties.
Sponsored By: Ash Kalra (Democratic)
Signed by Governor
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Bill Overview
Analyzed Economic Effects
4 provisions identified: 3 benefits, 1 costs, 0 mixed.
Attorney oversight and conflict safeguards
Your lawyer must sign a written acknowledgement before funding is effective. It confirms they reviewed the disclosures, work on contingency, route money through a trust or settlement fund, and take no referral fees. Your contract stays valid even if you later change lawyers. Your attorney cannot share privileged information with a funder unless you give written consent. Attorneys who break these rules face State Bar discipline. These rules apply to contracts on or after January 1, 2026 and sunset January 1, 2030 unless extended.
Bans on funder control with remedies
Funding companies cannot control your case, steer you to a lawyer, pay or take referral fees, give false information, or fund you without addressing a known prior assignment. They also cannot force you to fire your lawyer, use funds to pay court costs or attorneys’ fees, or help fake claims. You may assign your right to future claim proceeds. If a funder breaks these rules, the contract ends. You can get up to $10,000 per violation or three times actual damages, plus your attorney fees, and courts can order other relief. These protections start January 1, 2026 and end January 1, 2030 unless extended.
Clearer pricing and disclosures for legal funding
Beginning January 1, 2026, all consumer legal funding deals must be in a written contract. If you negotiated in another language, you get copies in that language and in English. The first page must show the funded amount, any one-time fees, the maximum you may owe, a clear repayment schedule, and a five-business-day cancel notice. You can repay early with no penalty. What you owe is set as fixed amounts by time from funding to when your case ends, not as a percentage of your recovery. These rules end January 1, 2030 unless extended.
Limits on out-of-state fee sharing
Starting January 1, 2026, California-licensed attorneys may not share fees with out-of-state legal businesses that allow nonlawyer owners, unless three conditions are met: you are also licensed there, the fees pay for work there, and that state’s law controls. Court-approved fee allocations and certain fixed-price contracts that do not pay for referrals or tie pay to case results are still allowed. Violations face $10,000 per violation or three times actual damages, plus costs, fees, and civil penalties that courts or the State Bar can collect. Penalties collected in State Bar actions help fund more enforcement and attorney discipline. These rules sunset January 1, 2030.
Sponsors & Cosponsors
Sponsor
Ash Kalra
Democratic • House
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
House vote • 9/8/2025
Item 35 — Assembly AFLOOR
Yes: 60 • No: 16
Senate vote • 9/4/2025
Item 164 — Senate SFLOOR
Yes: 29 • No: 10
legislature vote • 7/1/2025
Vote in CS53
Yes: 11 • No: 2
House vote • 4/21/2025
Item 55 — Assembly AFLOOR
Yes: 59 • No: 0
legislature vote • 4/8/2025
Vote in CX13
Yes: 12 • No: 0
Actions Timeline
Chaptered by Secretary of State - Chapter 565, Statutes of 2025.
10/10/2025SenateApproved by the Governor.
10/10/2025legislatureEnrolled and presented to the Governor at 4:30 p.m.
9/15/2025legislatureSenate amendments concurred in. To Engrossing and Enrolling. (Ayes 60. Noes 16. Page 3034.).
9/8/2025HouseIn Assembly. Concurrence in Senate amendments pending.
9/4/2025HouseRead third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 10. Page 2515.).
9/4/2025SenateRead second time. Ordered to third reading.
8/27/2025SenateRead third time and amended. Ordered to second reading.
8/26/2025SenateRead second time and amended. Ordered to third reading.
7/3/2025SenateFrom committee: Amend, and do pass as amended. (Ayes 11. Noes 2.) (July 1).
7/2/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
6/19/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
6/17/2025SenateIn committee: Set, first hearing. Hearing canceled at the request of author.
6/17/2025SenateFrom committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on JUD.
6/12/2025SenateReferred to Com. on JUD.
5/7/2025SenateIn Senate. Read first time. To Com. on RLS. for assignment.
4/21/2025SenateRead third time. Passed. Ordered to the Senate. (Ayes 59. Noes 0. Page 1173.)
4/21/2025HouseRead second time. Ordered to third reading.
4/10/2025HouseRead second time and amended. Ordered returned to second reading.
4/9/2025HouseFrom committee: Amend, and do pass as amended. (Ayes 12. Noes 0.) (April 8).
4/8/2025HouseRe-referred to Com. on JUD.
3/27/2025HouseFrom committee chair, with author's amendments: Amend, and re-refer to Com. on JUD. Read second time and amended.
3/26/2025HouseReferred to Com. on JUD.
3/3/2025HouseFrom printer. May be heard in committee March 22.
2/20/2025HouseRead first time. To print.
2/19/2025House
Bill Text
Chaptered
10/10/2025
Enrolled
9/10/2025
Amended Senate
8/26/2025
Amended Senate
7/3/2025
Amended Senate
6/19/2025
Amended Senate
6/17/2025
Amended Senate
6/12/2025
Amended Assembly
4/9/2025
Amended Assembly
3/26/2025
Introduced
2/19/2025