AB 2039: Attorneys.

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 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. 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.

This bill would also make a violation of the provisions prohibiting capping or running subject to a civil penalty of $25,000 for each violation. The bill would require the State Bar to enact summarily disbarment procedures for any licensee for a felony conviction of the provisions prohibiting capping or running or a misdemeanor conviction under those provisions where the court finds, or the record establishes, that the licensee acted knowingly and for financial gain.