Utah is scaling back its four-year-old program that loosened rules for delivering legal services, resulting in the exit of nearly 30 businesses and law firms. The state is narrowing its pilot initiative, which now excludes participants focused solely on profit-sharing between lawyers and non-lawyers or the employment of lawyers by non-lawyers.
This change follows concerns raised about the ethical use of the program and its ability to serve underserved consumers effectively.
Meanwhile, neighboring Arizona is moving ahead with its legal industry reforms, which have already resulted in the licensing of over 100 law firms and legal businesses since 2021. Notably, Arizona recently approved a law firm owned by accounting giant KPMG, marking the first instance of a Big Four firm entering the U.S. legal market.
The state’s approach is seen as expanding access to justice, attracting legal businesses that aim to drive innovation and affordability in legal services.
Utah’s decision to refocus its program comes after accusations that some businesses misused their participation to bolster credibility or offer services not fully compliant with Utah’s licensing rules. The changes to Utah’s initiative aim to ensure that companies participating in the program are directly contributing to expanding access to legal services for underserved populations.
In contrast, Arizona’s reforms have attracted significant interest, with companies like LegalZoom and Axiom joining the state’s legal market. These efforts have been praised for balancing innovation with the goal of improving the affordability and accessibility of legal services. Utah’s shift towards a narrower focus is seen as a step to refine its approach, while Arizona’s broader reforms continue to transform its legal landscape.
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