Two laws just took effect Jan. 1, 2026, Assembly Bill 931 and Senate Bill 37, which require California law firms to review business structures, contracts, referral arrangements, and compliance protocols.
AB 931 tightens fee-sharing rules involving nonlawyer and out-of-state entities, while SB 37 expands restrictions on attorney advertising, solicitation, and lead generation.
Together, these laws raise the bar for internal compliance, documentation, and risk-mitigation—or firms may face statutory penalties, civil liability, and disciplinary action.
Our new white paper explains what AB 931 and SB 37 require, how they intersect with existing rules, and where law firms face the most common compliance risks—particularly with management services organizations (MSOs), referral arrangements, and lead-generation vendors.
What you’ll find inside:
- How AB 931 restricts fee sharing with nonlawyers and out-of-state ownership models
- How SB 37 modernizes and expands rules around advertising, solicitation, and lead generation
- Common risk areas for California law firms (MSOs, referrals, and lead-gen agreements)
- Practical steps firms should take now, including audits, agreement revisions, and marketing reviews
- A compliance checklist to help this year and beyond
