Arizona Firms Blocked? California’s New Legal Rule Spells Trouble

California is at it again. Their latest power move is putting up barriers like they’re hosting a legal Olympics.

The latest stunt? The partisan left-leaning Assembly Bill 931. This piece of legislation is designed to block law firms backed by outside investors from operating in California, which will put a stranglehold on states like ours.

How California's Legal Block Will Affect Arizona

Now, why should Arizona care? We've embraced a more open legal business structure here, and that includes allowing non-lawyers to invest in law firms. This policy of openness has attracted major investors, including KPMG.

KPMG is one of the world's largest accounting firms, which provides audit, tax, and advisory services to businesses worldwide.

Get our free mobile app

The company set up shop in Arizona under our state's alternative business structure program. But California’s bill would slam the door shut on KPMB and any other Arizona-based firms hoping to expand into the state.

Arizona Wants to be More Like California for This One Reason

Why California's New Bill is Bad News for Arizona Businesses

If it passes, California's new bill is going to spell bad news for Arizona businesses and residents.

The bill limits competition. That means there will be fewer options for legal services, and what is available could come at much higher costs.

The Crisis in California is About to Become a Major Problem for Arizona

It also discourages innovation. The Arizona business model enables firms to access capital, grow, and deliver improved services. California’s, on the other hand, is a more restrictive approach. The fear is that the bill could set a precedent for other states to follow, and that could isolate Arizona’s legal industry even more.

Arizona Wants to Protect Consumers. California Doesn't Care

Let’s be real; California's bill isn't about protecting consumers. It’s about keeping big firms from disrupting California’s entrenched legal market. If the bill passes, Arizona’s legal enterprises won't be able to expand into California or any other states that follow their lead. This could limit access to legal services for residents, potentially leading to fewer options.

Thanks again, California, for proving it's more important to restrict access for the little guy. We’ll keep doing things our way, but don’t be surprised if your lawyers start looking to Arizona for better opportunities.

Sources: Bloomberg Law | LegiScan | Corporate Council Business Journal