California State Bar Puts Brakes on Proposed 'Regulatory Sandbox,' Advertising Rule Changes
The board's chairman says he hopes to resurrect innovation measures in May. But the decision was a blow to members of a task force who developed the recommendations over the course of 14 months.
March 13, 2020 at 02:00 AM
3 minute read
The original version of this story was published on The Recorder
California's state bar on Thursday put the brakes on controversial proposals aimed at expanding the availability of legal help in the state, citing "political headwinds."
Board chairman Alan Steinbrecher said he hopes to resurrect measures championing a so-called regulatory sandbox and easing legal advertising rules in May.
"This is not a closure, refer it to committee, table it and let it go forever," Steinbrecher said at a bar meeting. "This is an attempt to make sure we have the best information in front of the board at the right time."
The decision was a blow to members of a task force who developed the recommendations over the course of 14 months.
"I'm embarrassed and disappointed for the board and the regulatory agency as a whole," former trustee and task force member Joanna Mendoza tweeted. "Today they have let down all the people living in California. They have lost their role as potential leaders in the fight for" access to justice.
The trustees tabled a proposal to create a group that would study a potential pilot program, known as a regulatory sandbox, that would free service or product developers from existing professional rules or statutes that currently hinder their work. Also shelved were recommendations to loosen rules on legal advertising and lawyer referral services.
"Part of me wants to be bold and move forward with the recommendations of the task force," Steinbrecher said. "But I'm also aware of opposition in some quarters."
Many California lawyers and their trade groups have criticized the proposed changes as posing potential dangers to consumers. A public comment period on the regulatory proposals drew about 3,000 responses last year, and most of them criticized the changes. The California Supreme Court and state lawmakers have largely remained silent on the task force's work.
The Legislature and, in some cases, the state's courts have been moving in the opposite regulatory direction of the task force, actually tightening rules governing who can and cannot practice law. The California Supreme Court on Wednesday upheld an appellate decision finding that online service LegalMatch is a lawyer referral service that must be registered with the bar.
Trustees did agree to ask for public comment on two modest rule changes. One would require lawyers to stay abreast of the "risks and benefits" of relevant technology. The second would allow lawyers to share settlement fees with nonprofits. Current rules limit the fee-splitting with nonprofits to court-ordered awards.
Separately, the board on Thursday also moved ahead with work on a possible paraprofessional program that would allow licensed practitioners who are not attorneys to provide some types of legal services. A working group will present final recommendations on such a program by July 2021.
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