AB 931 preserves trustworthy legal services for immigrants

OPINION – The images of ICE (Immigration & Customs Enforcement) splashed across news media in recent weeks are deeply unsettling. When armed, masked vigilantes who are under no obligation to identify themselves start terrorizing workers and blasting their way into citizens’ homes under the guise of “immigration enforcement,” it erodes public trust and invites abuse.

The same is true in the legal profession. When non-lawyers are allowed to profit from or influence legal representation through alternative business systems (ABS), we open the door to a different kind of vigilante justice – one driven by corporate profit, not professional ethics.

Lawmakers in Sacramento are smart to address the threat of profit-driven legal services with AB 931. By prohibiting corporations and non-lawyers from taking a share of attorneys’ legal fees, the bill establishes a guardrail that ensures lawyers always remain accountable to their clients – not shareholders or outside investors. Establishing these protections today creates the right conditions for innovation to thrive without harming consumers, especially the most vulnerable.

Unchecked “innovation” has already dealt measurable harm to Californians. Social media giants have amassed enormous wealth under lax regulatory structures, while consumers pay the price. Meta, for example, has faced global scrutiny for the addictive and sometimes deadly effect their platforms have on young people. It should come as no surprise that calls to reject AB 931 have come from those who wish to profit off the very people the bill seeks to protect.

What the corporate interests fighting this bill won’t tell you is how AB 931 encourages attorneys to explore innovations and technology solutions to reach new clients. The bill keeps the door wide open for firms to contract with any corporation or legal entity that would help reach at-risk populations, while slamming the door on conflicts of interest that would jeopardize an attorney’s independence.

For California’s most vulnerable residents – immigrant families, seniors, low-income workers – preserving attorney independence is critical. Strong legislation to protect the integrity of legal representation means legal advice comes without corporate pressure on your attorney to settle early or upsell unnecessary services to turn a profit. AB 931 ensures your lawyer is bound to advocate on behalf of your best interests, not the interests of corporate shareholders.

We can look to neighboring states like Utah and Arizona to see what happens when we get this wrong. In Arizona, where the legislature passed a law permanently allowing alternative business structures (ABS), cases have emerged where clients didn’t know who their lawyer was – only the brand name of the service they purchased.

In 2020, Utah started allowing non-lawyers to offer legal services through a pilot program. By 2024, the Utah Supreme Court scaled back its regulatory experiment after data showed most participants to be for-profit, high-volume providers. Immigrants in particular were found to be at greater risk of exploitation, prompting the Court to bar immigration-focused for-profits from the program entirely.

Immigrant communities and other at-risk populations deserve real lawyers who are trained, licensed, and ethically bound to serve their interests. But in the shadows of our legal system, notario scams targeting Latino immigrants are once again on the rise – exploiting language barriers and desperation. These unlicensed predators promise to help but deliver nothing, knowing many of their “clients” are too afraid to report fraud out of fear of detention or deportation.

Alternative business structures open the door to the same kind of exploitation, where corporate actors can hide behind brand names unbound by ethical obligations yet profiting off vulnerable people searching for safety and stability. If you don’t know who is representing you, only the name of the platform you clicked on, that undermines the trust that is foundational to our justice system.

California has long been a leader in consumer protection and civil rights. AB 931 should be the next chapter in that legacy. It has earned the support of legal aid groups, consumer advocates, and civil justice organizations. The choice before lawmakers is simple: pass AB 931 to stand with those who understand the true cost of corporate ownership, or put Californians at risk by siding with those who aim to profit from owning the legal industry.

Elizabeth A. Hernandez is a Litigation Attorney with BD&J, PC in Los Angeles. She is the President-Elect of the Consumer Attorneys Association of Los Angeles (CAALA).