Similar to regulatory reform initiatives in Utah and Arizona, the Washington Supreme Court has entered an order approving a pilot program that will allow companies and nonprofits that are not owned by lawyers to provide legal services under carefully monitored conditions.
The court’s order (Order 25700-B-721), entered Dec. 5, approves a framework proposed by the Supreme Court’s Practice of Law Board and the Washington State Bar Association for a data-driven regulatory reform pilot, and directs those bodies to collaborate in setting up the program. The pilot will last for 10 years from the date the first entity is approved to participate.
“This Court has determined that a pilot project to test entity regulation under the proposed Framework will assist the Board, the WSBA, and this Court in determining whether entity regulation will increase access to justice by enhancing access to affordable and reliable legal and law-related services consistent with protection of the public, and whether entity regulation will create risks of consumer harm, regulatory challenges, or other risks that would serve as barriers to implementing reform,” said the order, signed by Chief Justice Steven González.
The pilot creates an exception to Rule 5.4 of the Washington Rules of Professional Conduct, by which only entities owned by lawyers can practice law and deliver legal services.
It authorizes entities not owned by lawyers, if approved, to practice law, but under strict conditions that limit the duration of their operations and that require active monitoring and oversight.
Each entity will be required to appoint a compliance officer who will be responsible for ensuring the entity’s adherence to the court’s authorizing order and applicable ethical rules, and for reporting data on the entity’s operations to the WSBA.
A key focus of the pilot is on collecting data, the court’s order says.
“The purpose and focus of this pilot project are to collect data and information to inform reform efforts related to the regulation of the practice of law, and more specifically, to rules and regulations governing entities engaging in activities whether or not they constitute the practice of law.”
The order directs the WSBA to develop a complaint procedure for members of the public to report any alleged violations of the rules by entities or their staff. If appropriate after investigating a complaint, the WSBA would be authorized to recommend removal of an entity from the pilot.
Entities applying to participate in the program would be required to propose Each beta-test applicant shall propose a “specific hypothesis” regarding:
- reforming one or more regulatory rules governing entities practicing law and, if applicable, other related rules and
- that reform’s impact on the accessibility of legal services in Washington.
Its proposal would also have to specify a study to test its proposed reform.
“A lot has changed in 100 years, but not when it comes to legal regulation,” said WSBA Executive Director Terra Nevitt in a statement issued by the bar. “Now we are at a regulatory crossroads. The technology revolution is here, as well as exciting new business models.
“This pilot will help us understand whether and how we can harness that innovation — with public protection as our top priority — to meaningfully expand legal services for Washingtonians.”
The WSBA says that updates about the logistics, timing, and application process for the pilot will be posted at www.wsba.org/pilot-project.
