AB 931: State Bar Act: consumer legal funding.

This bill aims to regulate consumer legal funding transactions, which involve companies purchasing and assigning a contingent right to receive a settlement amount in exchange for a consumer's legal claim. The transaction must be in writing and include specific provisions, such as the amount to be paid to the consumer and one-time charges. The bill prohibits companies from paying commissions or referral fees to attorneys or law firms for referring consumers and imposes penalties for violating these prohibitions. The bill also restricts attorneys from promising or giving anything of value to secure clients, except as provided. Additionally, attorneys are prohibited from sharing legal fees directly or indirectly with out-of-state entities that provide legal services until January 1, 2030, with some exceptions. The bill subjects violators to discipline by the state bar and penalties.