Utah and Arizona have emerged as pioneers in modernizing legal service delivery and ownership structures. Utah’s Regulatory Sandbox, authorized by its Supreme Court in 2020, established a controlled environment for testing non-traditional legal service models under careful oversight. The program permits non-lawyer ownership, alternative business structures, and innovative service delivery methods, while maintaining consumer protection through rigorous reporting requirements. Given its success, the Utah Supreme Court has extended the program through 2027.
Arizona implemented an even more comprehensive reform by becoming the first state to eliminate restrictions on non-lawyer ownership of law firms. Their Alternative Business Structure (ABS) program enables outside investment in legal services and permits multidisciplinary practices combining legal and non-legal services. The program maintains professional standards through mandatory licensing, compliance lawyers, malpractice insurance requirements, and background checks for owners. The ABS model has gained significant traction, with 100 entities approved to operate under this framework. Both states’ initiatives demonstrate that meaningful innovation in legal service delivery can coexist with robust consumer protection measures.
