AB 2039: Attorneys.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

The State Bar Act provides for the licensure and regulation of attorneys by the State Bar of California (State Bar), a public corporation governed by a board of trustees. Existing law authorizes the board of trustees, with the approval of the Supreme Court, to formulate and enforce rules of professional conduct for all licensees of the State Bar.

Existing provisions of the Labor Code prohibit an employer from making, adopting, or enforcing any rule, regulation or policy preventing an employee from disclosing information to a government or law enforcement agency, to a person with authority over the employee, or to another employee who has authority to investigate, discover, or correct the violation or noncompliance, if the employee has reasonable cause to believe that the information discloses a violation of state or federal statute, or a violation of or noncompliance with a local, state, or federal rule or regulation.

This bill would add provisions to the State Bar Act that would prohibit an employer, law firm, attorney, or any person acting on their behalf from retaliating against an individual for disclosing information in good faith, or because the employer, law firm, or attorney believes the individual disclosed or may disclose information in good faith, where the individual has reasonable cause to believe that the information reveals a violation of the State Bar Act, the California Rules of Professional Conduct, or any other state or federal statute, rule, or regulation governing the conduct of attorneys.

Existing law requires certain contracts between an attorney and client to comply with specified requirements, including requiring contracts to represent a client on a contingency fee basis to be in writing and include the contingency fee rate and specified other information.

This bill would require an attorney entering into a loan or financial assistance arrangement with a client to have a separate written contract that contains the total amount financed, repayment terms and contingencies, and all fees, costs, and charges. The bill would prohibit an attorney from charging the client interest on any loan or funds. The bill would make a violation of those requirements subject to a civil penalty of $15,000 per offense or injunctive relief, and subject to discipline by the State Bar.

Existing law makes it unlawful for any person to act as a runner or capper for any attorneys or to solicit any business for attorneys, as specified. Existing law makes a violation of those provisions a misdemeanor or a felony, as specified, and also authorizes a person to bring a civil action for specified remedies for a violation of those provisions. Existing law authorizes the Supreme Court to disbar, including to summarily disbar, or suspend an attorney for specified acts, including conviction of a felony or misdemeanor involving moral turpitude.

Sponsors

Sponsors by party (alphabetical): Democratic 2 · Republican 1

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 27, 2026Chaptered by Secretary of State - Chapter 574, Statutes of 2026.
2. September 27, 2026Approved by the Governor.
3. September 3, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 26, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6576.).
5. August 25, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 25, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
7. August 17, 2026Read second time. Ordered to third reading.
8. August 13, 2026Read second time and amended. Ordered returned to second reading.
9. August 13, 2026From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).
10. August 3, 2026In committee: Referred to APPR. suspense file.
11. June 25, 2026Read second time and amended. Re-referred to Com. on APPR.
12. June 24, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (June 23).