Utah’s Alternative Business Structures (ABS) framework, implemented through the state’s Regulatory Sandbox, introduces a limited reform to address specific gaps in the delivery of legal services within the Utah market. Utah’s ABS model is narrowly tailored to meet local needs without fundamentally altering the traditional role of attorneys.
Focus on the Utah Legal Market
If you’re thinking of structuring your business through an Utah ABS, you should be aware that a key limitation of Utah’s ABS framework is its exclusive focus on serving Utah residents. This ensures that ABS entities contribute directly to addressing access-to-justice issues within the state. Entities approved under the sandbox:
•Must primarily serve Utah residents, even if offering services online.
•Cannot operate as pure referral structures; they must provide substantive legal services directly to clients.
Ethical and Operational Guardrails
The framework includes strict safeguards to maintain ethical standards and accountability:
•Ownership Restrictions: While non-lawyers may hold financial interests, all entities remain subject to oversight by the Utah Supreme Court.
•Professional Standards: Non-lawyer owners must adhere to rules designed to preserve the attorney-client relationship and prevent conflicts of interest.
•Data Protection: ABS entities are required to implement robust measures for safeguarding client information, recognizing the sensitive nature of legal data.
Conclusion
Utah’s ABS framework is a measured response to specific local needs, not an overreach. Its focus on serving Utah residents and the prohibition of referral-only models reflects a deliberate effort to enhance legal service delivery within well-defined boundaries. This approach avoids undermining traditional ethical safeguards while addressing gaps in access to justice. Other jurisdictions considering similar reforms should note Utah’s targeted approach, emphasizing incremental, locally focused change over broad deregulation.
