The Indiana Supreme Court has taken a significant step toward improving access to legal services by approving funding for a legal regulatory sandbox. This initiative aims to explore alternative legal service models to help mitigate the state's growing attorney shortage.
The Court's decision follows a recommendation from the Commission on Indiana’s Legal Future, established in April 2024, to analyze the shortage of lawyers and develop potential solutions. In a report released in July 2024, the Commission described the crisis as an “existential threat to the legal profession and those we serve.” Citing data from the American Bar Association (ABA), the report noted that Indiana has only 2.3 lawyers per 1,000 residents, placing it among the lowest-ranked states in attorney availability.
Under the Court’s directive, the Commission will develop the regulatory sandbox framework and submit its proposed guidelines for approval by March 1, 2025.
A legal regulatory sandbox provides a controlled environment for testing new approaches to delivering legal services. The Commission has suggested that Indiana’s program follow the model established by Utah’s Office of Legal Services Innovation, created by the Utah Supreme Court in 2020, to expand consumer access to affordable and modern legal services.
According to Utah’s Innovation Office, the sandbox allows organizations to operate under alternative legal service structures while collecting data to inform future regulatory decisions. The Utah Supreme Court oversees and approves participants, permitting them to practice law under nontraditional models without facing discipline for that specific type of practice—while still maintaining regulatory oversight.
Alternative models tested in the sandbox include law firms with nonlawyer investment or ownership and the integration of technology-driven legal service providers. The Commission believes this structure allows for innovation while ensuring consumer protection through regulatory safeguards.
As of June 2024, Reuters reported that 43 entities had been authorized or provisionally authorized in Utah’s sandbox.
Indiana’s initiative is part of a broader national discussion on legal industry regulations. Arizona became the first state to eliminate restrictions on nonlawyer ownership of law firms. This allowed businesses to offer legal services under shared ownership between lawyers and nonlawyers, provided they received approval from the Arizona Supreme Court. More than 100 companies now operate under this model.
While some states have pursued similar reforms, others have hesitated due to concerns about maintaining professional ethical standards. Reuters noted that efforts to loosen regulations have met resistance in multiple states. However, Washington’s state bar and law practice board recently submitted a proposal to the Washington Supreme Court to amend regulatory requirements for legal service providers.
Beyond approving the legal regulatory sandbox, the Indiana Supreme Court has endorsed several initiatives to support attorneys and improve access to justice in underserved areas. These include:
In total, the Commission submitted 27 interim recommendations to the Court, all focused on improving the availability and accessibility of legal services in Indiana.
By embracing innovative solutions like the regulatory sandbox, Indiana is positioning itself as a leader in modernizing the legal industry while addressing the urgent need for more legal professionals across the state.
