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These are currently the four most common regulatory reform models. It's important to note that these models overlap and intersect in various ways.
Regulatory Sandbox
A regulatory sandbox is a policy tool through which new models or services can be offered and tested to assess marketability and impact and inform future policymaking while maintaining consumer protection. It is risk-based regulation involving one or more regulatory models (e.g., ABSs, community-based models, etc.).
IAALS proposes a new system of regulation for legal service providers. The IAALS model of regulation envisions a non-profit, independent regulator of legal service providers implementing a risk-based approach to regulation that seeks to advance our regulatory objective: ensure consumers access to a well-developed, high-quality, innovative, and competitive market for legal services. Read more in our Independent Regulator of Legal Services Policy Outline.
Domestic
Implemented Programs:
Utah
- The Latest in Utah
- The Utah Supreme Court Office of Legal Services Innovation (Includes authorized entities and activity reports)
- News: Ariz., Utah OK Nonlawyer Program for Housing Advice
- Letter to Utah State Bar, March 28, 2023
- Community Justice Advocates of Utah and Innovation for Justice Partner to Offer Innovative Legal Aid Services in Utah
- Background Resources
- Utah Supreme Court Standing Order No. 15 Creating the Regulatory Sandbox
- Working Group on the Regulatory Structure for Legal Services and 2019 Initial Report and Recommendations
- Standing Order No. 14 Regarding Creation of the Task Force on Regulatory Reform
- Standing Order No. 16 Authorizing a Housing Stability Legal Advocate Pilot Program
- Data & Evaluation
Programs Under Consideration:
Illinois
- The Latest in Illinois
- Background Resources
Indiana
- The Latest in Indiana
- Background Resources
Minnesota
- The Latest in Minnesota
- Minnesota State Bar Takes Big Step Toward Launching Gen AI Regulatory Sandbox (August 2024)
- Implications of Large Language Models (LLMs) on the Unauthorized Practice of Law (UPL) and Access to Justice, MSBA Working Group on AI (June 2024)
Washington
- The Latest in Washington
- Background Resources
Programs Not Moving Forward:
California
- The Latest in California
- Background Resources
Florida
- The Latest in Florida
- Background Resources
Virginia
- The Latest in Virginia
- Background Resources
International
Implemented Programs:
Alberta, Canada
- Innovation Sandbox
- 2020/2021 ABA Canadian - American Roundtable Discussion Report with Details on Entity Regulation and Use of a Regulatory Sandbox
British Columbia, Canada
- Innovation Sandbox
- News: Government’s Decision Re: Amendments to 2018 Legal Professions Act
- News: BC Recommends Single Regulator, Flexible Licensing as Part of Legal Governance Modernization
- Law Society announces legal action to challenge Legal Professions Act
Ontario, Canada
- Access to Innovation Project
- 2024 Update Report on Access to Innovation Program
- Law Library Innovation Sandbox
Manitoba, Canada
Nova Scotia, Canada
Alternative Business Structures
An alternative business structure, or ABS, is a business entity that includes people who aren't lawyers who have an economic interest or decision-making authority in a firm and provides legal services in accordance with local Supreme Court and ethics rules. This regulatory model is often referred to as entity-based regulation. It targets people of all income levels and businesses and involves changing or eliminating Model Rule of Professional Conduct 5.4.
Domestic
Implemented Programs:
Utah
- See the information listed in the "Regulatory Sandbox" section above.
Arizona
- The Latest in Arizona
- Background Resources
- The Shely Firm Summary of the 2021 Changes of the Regulation of Legal Practice in Arizona
- Rules of Code of Judicial Administrative Changes
- Arizona Supreme Court Task Force on the Delivery of Legal Services Homepage and 2019 Final Report and Recommendations
- PowerPoint Presentation: “Task Force Presentation: Improving A2J in Arizona”
- Video: Arizona’s Legal Problems… and Solutions!
- Public Engagement
Programs Under Consideration:
Texas
- The Latest in Texas
- Background Resources
Washington, D.C.
- Background Resources
Litigation
- Erasmus v. LegalZoom.com, Inc. et al.
International
Implemented Programs:
Australia
- Legislation
- New South Wales Legalization – Legal Profession Act 2004
- Victoria Legalization – Legal Profession Act 2004
- Northern Territory Legalization – Legal Profession Act 2006
- Queensland Legalization – Legal Profession Act 2007
- Tasmania Legalization – Legal Profession Act 2007
- Western Australia Legalization – Legal Profession Act 2008
- South Australia Legalization – Legal Practitioners Act 1981
- Law Council of Australia
- Incorporated Legal Practices – A New Era in the Provision of Legal Services in the State of New South Wales
- Modern Law Firm Management: Should non-lawyer ownership of law firms be endorsed and encouraged
- Adopting Law Firm Management System to Survive and Thrive: A Study of the Australian Approach to Management-Based Study of the Australia Approach to Management-Based Regulation
- Regulating Law Firm Ethics Management: An Empirical Assessment of an Innovation in Regulation of the Legal Profession in New South Wales
- Law … What’s It Good For? How People See the Law, Lawyers and Courts in Australia
Canada
England & Wales
- Legal Services Act of 2007
- Regulators
- Legal Services Board (the oversight regulator of legal services in England and Wales)
- Solicitors Regulation Authority (SRA) (regulating solicitors, law firms, and other types of lawyers, such as registered foreign lawyers (RFLs) and registered European lawyers (RELs))
- Reports
- 2020 Centre for Ethics & Law, University College London, Final Report of the Independent Review of Legal and 2022 Supplementary Report to the Independent Review of Legal Services Regulation: Consumer Harm and Legal Services from Fig Leaf to Legal Well-Being
- 2020 Centre for Ethics & Law, University College London, Independent Review of Legal Services Working Paper
- 2018 Impact Evaluation of SRA’s Regulatory Reform Programme
- 2017 Competition and Market Authority Legal Services Market Study
- 2015 Innovation in Legal Services: A Report for the Solicitors Regulation Authority and Legal Services Board
- Lawyer Specialization – Managing the Professional Paradox
- Understanding the Consumer Experience of Will-Writing Services
- Contesting Professionalism: Legal Aid and Nonlawyers in England and Wales
Programs Under Consideration:
New Zealand
Allied Legal Professionals
"Allied legal professionals" is the term IAALS uses to describe a tier of providers who are trained and certified to offer legal advice and services for certain case types. This is a market-based model that targets middle and low-income individuals and requires relaxation of/exemption or waiver of unauthorized practice of law (UPL) rules.
Domestic
See the IAALS Allied Legal Professionals Knowledge Center for the full landscape of programs in various stages throughout the country.
International
Implemented Programs:
British Columbia, Canada
- Implemented through their innovation sandbox, see above
Ontario, Canada
Saskatchewan, Canada
Community-Based Justice Worker Models
Community-based justice worker models involve training and certifying individuals working at community-based organizations to offer legal advice and services in certain case types. These models target low-income individuals and require modification of/exemption from or waivers of UPL restrictions. Currently, existing projects like these are authorized through state supreme court Administrative Orders or the Utah Sandbox. Learn more about the diverse landscape of community-based justice worker models in this expert opinion and this webinar.
National Organizations Working in this Space:
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Implemented Programs:
Alaska
- The Latest in Alaska
- Background Resources
Arizona
- The Latest in Arizona
- Background Resources
- 2024 Arizona Supreme Court Order Broadening Definitions for the Housing Stability Legal Advocates Program
- 2020 Arizona Supreme Court Order Establishing the Licensed Legal Advocate Pilot Project
- 2019 Arizona Supreme Court Task Force on the Delivery of Legal Services Report & Recommendations
- Arizona Supreme Court & i4J Licensed Legal Advocate Initiative
Delaware
- The Latest in Delaware
Hawaii
- The Latest in Hawaii
Montana
- The Latest in Montana
Utah (through its Sandbox)
- The Latest in Utah
- Background Resources
- See above for the background resources listed under the Utah Sandbox
Programs Under Consideration:
Illinois
- The Latest in Illinois
- Background Resources
Michigan
- The Latest in Michigan
- Background Resources
Texas
- The Latest in Texas
- Background Resources
Litigation:
Currently, much of the litigation in the regulatory reform space centers around whether the unauthorized practice of law statutes in various states, which prohibit people who are not lawyers from providing legal advice, violate the first amendment. In this short video, Paul Sherman from The Institute for Justice discusses the history of the professional speech doctrine; and in this short video, Paul discusses the line between speech by lawyers that is fully protected by the first amendment and what is not protected by the first amendment.
- Upsolve v. James (NY)
- South Carolina State Conference of the NAACP v. Wilson (SC)
- Polaski v. Stein (NC)
- Veterans Guardian VA Claim Consulting v. Platkin (3rd Circuit)