§ 6256. — 6256. (Added by Stats. 2025, Ch. 565, Sec. 3.)

(a)
An attorney, or the attorney’s immediate family, retained by a consumer shall not have a financial interest in a consumer legal funding company offering consumer legal funding, and shall not provide consumer legal funding directly to a consumer.
(b)
Any attorney who has referred the consumer to the consumer’s retained attorney shall not have a financial interest in a consumer legal funding company offering consumer legal funding to that consumer.
(c)
An attorney retained by a consumer shall not disclose any privileged information to a legal funding company without the written consent of the
consumer. Disclosing information to a legal funding company at the consumer’s request shall not otherwise void the attorney-client privilege.
(d)
An attorney shall not compensate, promise, or give anything of value to a person for the purpose of recommending or securing the services of the attorney or the attorney’s law firm, except that an attorney may do the following:
(1)
Pay the reasonable costs of advertisements or communications permitted by Rule 7.2 of the California Rules of Professional Conduct, or any successor rule.
(2)
Pay the usual charges of a legal services plan or a qualified attorney referral service operating in accordance with the rules established by the state bar.
(3)
Pay for a law practice operating in accordance with Rule 1.17 of the California Rules of Professional Conduct, or any successor rule.
(4)
Refer clients to another attorney or a nonlawyer professional pursuant to an arrangement not otherwise prohibited by the California Rules of Professional Conduct or this chapter.
(e)
Any attorney who violates this section shall be subject to discipline by the State Bar of California.

Legislative History

Added by Stats. 2025, Ch. 565, Sec. 3. (AB 931) Effective January 1, 2026.