State Bar of California

The law strengthens the State Bar’s regulatory and disciplinary tools, clarifies its judicial-branch status, and extends authority for 2027 attorney license fees. It also adds safeguards for client funds and rules for law schools and attorney associations.

What the law does ​

• Declares that the State Bar is a state agency in the judicial branch and the administrative arm of the California Supreme Court for attorney licensing, regulation, and discipline.
• Requires clearer, prominently formatted default notices warning attorneys that failure to respond can lead to inactive status, loss of practice rights, and recommended disbarment.
• Allows the State Bar to subpoena an attorney under investigation and to obtain trust-account records during disciplinary investigations while keeping those records confidential.
• Requires financial institutions to annually report all IOLTA accounts and specified non-IOLTA client trust accounts associated with attorney license numbers.
• Makes any felony conviction grounds for attorney discipline and requires interim suspension pending finality of specified felony or moral-turpitude convictions.
• Allows up to $400 active and $100 inactive annual State Bar license fees for 2027, and lets attorneys file for inactive status through December 31 of the prior year.
• Requires attorneys to repay Client Security Fund payouts caused by their dishonest conduct; nonpayment can lead to suspension or block return to active status.
• Restricts use of the title “law school” to entities awarding California J.D. degrees and approved, accredited, or registered with the appropriate bar-examiner authority.
• Continues State Bar collection of California Lawyers Association fees through 2029 if the State Bar finds a public purpose, with reimbursement for collection and transition services.

Who it affects ​

• California attorneys, including those under discipline, with criminal convictions, or responsible for client trust accounts.
• Clients seeking reimbursement for losses caused by dishonest attorneys.
• Financial institutions maintaining attorney client trust accounts.
• Unaccredited, registered, and prospective California law schools.
• Voluntary attorney associations, including the California Lawyers Association.

Context ​

The law preserves State Bar open-meeting requirements while allowing closed sessions for additional confidential admissions, discipline, and law-school information.