AB 540 advancing after bipartisan support for "first-look" template and referral clarifications

Assemblymember Connolly told the Senate Judiciary Committee that AB 540 is a narrowly drawn effort to resolve three recurring civil‑procedure issues: clarify that certain methods of service do not trigger additional timing rules, confirm ordinary attorney referrals do not create a certified referral service, and provide a voluntary "first look" template for parties to review sensitive records by stipulation.

Mike Belote, representing California Defense Counsel, described the "first look" template as a voluntary, consent‑based process that could limit discovery disputes. "This gives the plaintiff's lawyer a chance to take a look at them and say, we're fine with these, but these we're going to put on a privilege log and exclude," Belote said, using a health‑care records example to illustrate privacy risks.

Sabina Tucker of the Consumer Attorneys of California, a co‑sponsor, said the bill was negotiated with the state bar to address ambiguity in enforcement of certified referral services and to make the referral exception narrow. She said the change would prevent confusion about whether a routine attorney referral subjects a lawyer to private‑action enforcement under the referral statute.

With no opposition at the microphone, Senator DeRosa moved that AB 540 be returned to the Senate floor for consideration. The committee recorded a 9–0 vote in favor and the chair said the measure would be placed on call briefly before the committee closed.