Sponsors say AB540 protects ordinary attorney‑to‑attorney referrals from SB 37 certification rules

Assemblymember Connolly told the committee AB540 clarifies the reach of SB 37 so that attorneys who refer potential clients incidentally — because a matter is outside their expertise, exceeds their capacity, or falls outside their criteria — are not operating a referral service that must be certified by the state bar.

Sabina Tacker of the Consumer Attorneys of California said the state bar worked closely with sponsors to craft language limited to attorney‑to‑attorney referrals. "So essentially, we want to make sure that the referral practice still continues, that you don't want someone handling a case that's not their expertise, and that's all the language does," she said, urging support.

Testimony emphasized that the change is narrow: AB540 is intended to preserve ordinary referral practices while ensuring commercial referral services remain regulated. The committee recorded support and voted to concur; no amendments to the referral language were offered in this hearing.