California Legal Codes and Statutes

Article 9 - Unlawful Solicitation

California Business and Professions Code — §§ 6150-6156.5

Sections (9)

§ 6150

Added by Stats. 1939, Ch. 34.

This article is a part of Chapter 4 of this division of the Business and Professions Code, but the phrase “this chapter” as used in Chapter 4 does not apply to the provisions of this article unless expressly made applicable.

§ 6151

Amended by Stats. 1991, Ch. 116, Sec. 6.

As used in this article:

(a)A runner or capper is any person, firm, association or corporation acting for consideration in any manner or in any capacity as an agent for an attorney at law or law firm, whether the attorney or any member of the law firm is admitted in California or any other jurisdiction, in the solicitation or procurement of business for the attorney at law or law firm as provided in this article.
(b)An agent is one who represents another in dealings with one or more third persons.
§ 6152

Amended by Stats. 2002, Ch. 784, Sec. 2. Effective January 1, 2003.

(a)It is unlawful for:
(1)Any person, in an individual capacity or in a capacity as a public or private employee, or for any firm, corporation, partnership or association to act as a runner or capper for any attorneys or to solicit any business for any attorneys in and about the state prisons, county jails, city jails, city prisons, or other places of detention of persons, city receiving hospitals, city and county receiving hospitals, county hospitals, superior courts, or in any public institution or in any public place or upon any public street or highway or in and about private hospitals, sanitariums or in and about any private institution or upon private property of any character whatsoever.
(2)Any person to solicit another person to commit or join in the commission of a violation of subdivision (a).
(b)A general release from a liability claim obtained from any person during the period of the first physical confinement, whether as an inpatient or outpatient, in a clinic or health facility, as defined in Sections 1203 and 1250 of the Health and Safety Code, as a result of the injury alleged to have given rise to the claim and primarily for treatment of the injury, is presumed fraudulent if the release is executed within 15 days after the commencement of confinement or prior to release from confinement, whichever occurs first.
(c)Nothing in this section shall be construed to prevent the recommendation of professional employment where that recommendation is not prohibited by the Rules of Professional Conduct of the State Bar of California.
(d)Nothing in this section shall be construed to mean that a public defender or assigned counsel may not make known his or her services as a criminal defense attorney to persons unable to afford legal counsel whether those persons are in custody or otherwise.
§ 6153

Amended by Stats. 2025, Ch. 645, Sec. 1. (SB 37) Effective January 1, 2026.

(a)A person, firm, partnership, association, or corporation violating subdivision (a) of Section 6152 is punishable, upon a first conviction, by imprisonment in a county jail for not more than one year or by a fine not exceeding fifteen thousand dollars ($15,000), or by both that imprisonment and fine. Upon a second or subsequent conviction, a person, firm, partnership, association, or corporation is punishable by imprisonment in a county jail for not more than one year, or by imprisonment pursuant to subdivision (h) of Section 1170 of the Penal Code for two, three, or four years, or by a fine not exceeding fifteen thousand dollars ($15,000), or by both that imprisonment and fine.
(b)A

person employed either as an officer, director, trustee, clerk, servant or agent of this state or of any county or other municipal corporation or subdivision thereof, who is found guilty of violating any of the provisions of this article, shall forfeit the right to their office and employment in addition to any other penalty provided in this article.

(c)Any person may bring a civil action for a violation of subdivision (a) of Section 6152 for the following remedies:
(1)Statutory damages of a minimum of five thousand dollars ($5,000) up to a maximum of one hundred thousand dollars ($100,000) per violation, or three times the amount of actual damages, whichever is larger. The amount of statutory damages in this subdivision shall be determined pursuant to subdivision (d).
(2)Attorney’s fees.
(3)Injunctive or declaratory relief.
(4)Any other relief the court deems proper.
(d)In assessing the amount of statutory damages, the court shall consider any one or more of the relevant circumstances presented by the case, including, but not limited to, the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth.
(e)The right of action under this section exists independently of

any enforcement action or inaction by any governmental agency or official.

§ 6154

Amended by Stats. 1993, Ch. 120, Sec. 2. Effective July 16, 1993.

(a)Any contract for professional services secured by any attorney at law or law firm in this state through the services of a runner or capper is void. In any action against any attorney or law firm under the Unfair Practices Act, Chapter 4 (commencing with Section 17000) of Division 7, or Chapter 5 (commencing with Section 17200) of Division 7, any judgment shall include an order divesting the attorney or law firm of any fees and other compensation received pursuant to any such void contract. Those fees and compensation shall be recoverable as additional civil penalties under Chapter 4 (commencing with Section 17000) or Chapter 5 (commencing with Section 17200) of Division 7.
(b)Notwithstanding Section 17206 or any other provision of law, any fees recovered pursuant to subdivision (a) in an action involving professional services related to the provision of workers’ compensation shall be allocated as follows: if the action is brought by the Attorney General, one-half of the penalty collected shall be paid to the State General Fund, and one-half of the penalty collected shall be paid to the Workers’ Compensation Fraud Account in the Insurance Fund; if the action is brought by a district attorney, one-half of the penalty collected shall be paid to the treasurer of the county in which the judgment was entered, and one-half of the penalty collected shall be paid to the Workers’ Compensation Fraud Account in the Insurance Fund; if the action is brought by a city attorney or city prosecutor, one-half of the penalty collected shall be paid to the treasurer of the city in which the judgment was entered, and one-half of the penalty collected shall be paid to the Workers’ Compensation Fraud Account in the Insurance Fund. Moneys deposited into the Workers’ Compensation Fraud Account pursuant to this subdivision shall be used in the investigation and prosecution of workers’ compensation fraud, as appropriated by the Legislature.
§ 6155

Amended by Stats. 2025, Ch. 645, Sec. 2. (SB 37) Effective January 1, 2026.

(a)An individual, partnership, corporation, association, or any other nongovernmental entity shall not operate for the direct or indirect purpose, in whole or in part, of referring potential clients to attorneys, and no attorney shall accept a referral of such potential clients, unless all of the following requirements are met:
(1)The service is certified by the State Bar of California and is operated in conformity with minimum standards for a lawyer referral service established by the State Bar and approved by the Supreme Court.
(2)The combined charges to the potential client by the referral service and the attorney to whom the potential client is referred do not exceed the total cost that the

client would normally pay if no referral service were involved.

(b)A referral service shall not be owned or operated, in whole or in part, directly or indirectly, by those lawyers to whom, individually or collectively, more than 20 percent of referrals are made. For purposes of this subdivision, a referral service that is owned or operated by a bar association, as defined in the minimum standards, shall be deemed to be owned or operated by its governing committee so long as the governing committee is constituted and functions in the manner prescribed by the minimum standards.
(c)None of the following is a lawyer referral service:
(1)A plan of legal insurance as defined in Section 119.6 of the Insurance Code.
(2)A group or prepaid legal plan, whether

operated by a union, trust, mutual benefit or aid association, public or private corporation, or other entity or person, which meets both of the following conditions:

(A)It recommends, furnishes, or pays for legal services to its members or beneficiaries.
(B)It provides telephone advice or personal consultation.
(3)A program having as its purpose the referral of clients to attorneys for representation on a pro bono basis.
(4)A nonprofit organization that partners with a referral service as provided in this article.
(d)The following are in the public interest and do not constitute an unlawful restraint of trade or commerce:
(1)An agreement between a referral service and a participating attorney to eliminate or restrict the attorney’s fee for an initial office consultation for each potential client or to provide free or reduced fee services.
(2)Requirements by a referral service that attorneys meet reasonable participation requirements, including experience, education, and training requirements.
(3)Provisions of the minimum standards as approved by the Supreme Court.
(4)Requirements that the application and renewal fees for certification as a lawyer referral service be determined, in whole or in part, by a consideration of any combination of the following factors: a referral service’s gross annual revenues, number of panels, number of panel members, amount of fees charged to panel members, or for-profit or nonprofit

status; provided that the application and renewal fees are reasonable and necessary to cover the cost of the program and established by the State Bar through the rulemaking process.

(5)Requirements that, to increase access to the justice system for all Californians, lawyer referral services establish separate ongoing activities or arrangements that serve persons of limited means.
(6)Partnerships or agreements between a referral service and a participant’s nonprofit organization to refer potential clients for assistance.
(e)With the approval of the Supreme Court, the State Bar shall formulate and enforce rules and regulations for carrying out this section, including rules and regulations which do the following:
(1)Establish minimum standards for lawyer referral services.
(2)Require that an entity seeking to qualify as a lawyer referral service register with the State Bar and obtain certification from the State Bar.
(3)Require that the certificate may be obtained, maintained, suspended, or revoked pursuant to procedures set forth in the rules and regulations.
(4)Require the lawyer referral service

to pay an application and renewal fee for the certificate in such reasonable amounts as may be determined by the State Bar. The State Bar shall adopt rules authorizing the waiver or reduction of the fees upon a demonstration of financial necessity. The State Bar may require that the application and renewal fees for certification as a lawyer referral service be determined, in whole or in part, by a consideration of any combination of the following factors: a referral service’s gross annual revenues, number of panels, number of panel members, amount of fees charged to panel members, or for-profit or nonprofit status.

(5)Require that, to increase access to the justice system for all Californians, lawyer referral services establish separate ongoing activities or arrangements that serve persons of limited means.
(6)Require each lawyer who is a member of a certified lawyer referral

service to comply with all applicable professional standards, rules, and regulations, and to possess a policy of errors and omissions insurance in an amount not less than one hundred thousand dollars ($100,000) for each occurrence and three hundred thousand dollars ($300,000) aggregate, per year. By rule, the State Bar may provide for alternative proof of financial responsibility to meet this requirement.

(7)Establish minimum standards for nonprofit organizations that partner with lawyer referral services.
(f)Provide that cause for denial of certification or recertification or revocation of certification

of a lawyer referral service shall include, but not be limited to:

(1)Noncompliance with the statutes or minimum standards governing lawyer referral services as adopted and from time to time amended.
(2)Sharing common or cross ownership, interests, or operations with any entity which engages in referrals to licensed or unlicensed health care providers.
(3)Direct or indirect consideration regarding referrals between an owner, operator, or member of a lawyer referral service and any licensed or unlicensed health care provider.
(4)Advertising on behalf of attorneys in violation of the Rules of Professional Conduct or the Business and Professions Code.
(g)This section shall not be construed to prohibit attorneys from jointly advertising their services.
(1)Permissible joint advertising, among other things, satisfies both of the following:
(A)The advertisement identifies by name the advertising attorneys or law firms whom the consumer of legal services may select and initiate

contact with.

(B)Each participating attorney or law firm shall have executed a joint advertising agreement with the entity managing the joint advertising agreement with the entity managing the joint advertising services, under which the attorney or law firm expressly takes liability for the content of the advertising.
(2)Certifiable referral activity involves, among other things, some person or entity other than the consumer and advertising attorney or law firms which, in person, electronically, or otherwise, refers the consumer to an attorney or law firm not identified in the advertising.
(h)A lawyer referral service certified under this section and operating in full compliance with this section, and in full compliance with the minimum standards and the rules and regulations of the State Bar governing lawyer referral services, shall not be deemed to be in violation of Section 3215 of the Labor Code or Section 750 of the Insurance Code.
(i)The payment by an attorney or law firm member of a certified referral service of the normal fees of that service shall not be deemed to be in violation

of Section 3215 of the Labor Code or Section 750 of the Insurance Code, provided that the attorney or law firm member is in full compliance with the minimum standards and the rules and regulations of the State Bar governing lawyer referral services.

(j)Certifications of lawyer referral services issued by the State Bar shall not be transferable.
§ 6155.1

Added by renumbering Section 6156 by Stats. 2025, Ch. 565, Sec. 1. (AB 931) Effective January 1, 2026.

(a)Any individual, partnership, association, corporation, or other entity, including, but not limited to, any person or entity having an ownership interest in a lawyer referral service, that engages, has engaged, or proposes to engage in violations of Section 6155, shall be liable for a civil penalty as defined in Sections 17206, 17206.1, and 17536, respectively, which shall be assessed and recovered in a civil action brought:
(1)In the manner specified in subdivision (a) of Section 17206 or Section 17536.
(2)By the State Bar of California.
(b)If the action is

brought pursuant to subdivision (a), the court shall determine the reasonable expenses, if any, incurred by the State Bar in its investigation and prosecution of the action. In these cases, before any penalty collected is paid out pursuant to subdivision (b) of Section 17206 or Section 17536, the amount of the reasonable expenses incurred by the State Bar shall be paid to the State Bar and shall be deposited and used as provided in subdivision (c).

(c)If the action is brought pursuant to paragraph (2) of subdivision (a), the civil penalty shall be paid to the State Bar and shall be deposited into a special fund to be used first for the investigation and prosecution of other such cases by the State Bar, with any excess to be used for the investigation and prosecution of attorney discipline cases.
§ 6156

Added by Stats. 2025, Ch. 565, Sec. 2. (AB 931) Effective January 1, 2026. Repealed as of January 1, 2030, by its own provisions.

(a)No attorney licensed or otherwise authorized to practice in this state shall share legal fees directly or indirectly with an out-of-state alternative business structure unless all of the following apply:
(1)The attorney is also licensed in the state in which the alternative business structure is approved.
(2)The fees are compensation for the provision of legal services in that state.
(3)The law of that state is controlling pursuant to Rule 8.5 of the California Rules of Professional Conduct or any successor rule.
(b)A violation of this section shall constitute cause for the imposition of discipline by the State Bar of California and shall subject the attorney to the following penalties:
(1)Statutory damages of ten thousand dollars ($10,000) per violation or three times the actual damages incurred by the consumer, whichever is greater.
(2)Attorney’s costs and fees.
(3)Injunctive or declaratory relief.
(c)(1) For the purposes of this section, “alternative business structure” means any entity that provides legal services while allowing nonattorney ownership or decisionmaking authority.
(2)For the purposes of this section, “alternative business structure” does not include nonprofit organizations.
(d)This section shall not apply to any arrangement for the sharing of legal fees if both of the following conditions are satisfied:
(1)The arrangement for the sharing of legal fees was ordered or approved by a court or tribunal of competent jurisdiction, including, but not limited to, the establishment or distribution of a common benefit fund in coordinated, consolidated, or multidistrict litigation.
(2)The manner in which the legal fees are to be allocated

is subject to judicial or tribunal oversight and determined to be fair, reasonable, and necessary for the administration of justice.

(e)This section shall not apply to a contract in which all of the following are satisfied:
(1)The contract outlines a specific dollar amount for services rendered.
(2)No payment is related to the referral of legal services or purchase of a lead for a potential client

or case.

(3)No payment is contingent on the amount recovered in a specific case.
(f)Nothing in this section shall be construed as superseding the holding in Ridgley v. Lew 55 F. Supp. 3d 89 (2014).
(g)This section shall only apply to contracts entered into on or after January 1, 2026.
(h)This section shall remain in effect only until January 1, 2030, and as of that date is repealed.
§ 6156.5

Added by Stats. 2025, Ch. 645, Sec. 3. (SB 37) Effective January 1, 2026.

(a)Any person may bring a civil action for a violation of Section 6155 for the following remedies:
(1)Statutory damages of a minimum of five thousand dollars ($5,000) up to a maximum of one hundred thousand dollars ($100,000) per violation or three times the amount of actual damages, whichever is larger. The amount of statutory damages in this subdivision shall be determined pursuant to subdivision (b).
(2)Attorney’s fees.
(3)Injunctive or declaratory relief.
(4)Any other relief

the court deems proper.

(b)In assessing the amount of statutory damages, the court shall consider any one or more of the relevant circumstances presented by the case, including, but not limited to, the nature and seriousness of the misconduct, the number of violations, the persistence of the misconduct, the length of time over which the misconduct occurred, the willfulness of the defendant’s misconduct, and the defendant’s assets, liabilities, and net worth.
(c)The right of action under this section exists independently of any enforcement action or inaction by any governmental agency or official.
(d)This section shall not be construed to prohibit

attorneys from jointly advertising their services in compliance with subdivision (g) of Section 6155.