Committee approves unauthorized-practice-of-law bill after debate over constitutional concerns

On Feb. 25 the Senate Business and Labor Standing Committee adopted a substitute and voted to favorably recommend House Bill 260, the unauthorized-practice-of-law amendments, after testimony from the sponsor, volunteer committee members, and the Attorney General's Office.

Representative Labe presented the bill, saying it arose from instances where nonlawyers filed deficient or deceptive court documents. Marybeth Lahoud, a longtime member of the Unauthorized Practice of Law (UPL) committee, told the committee the measure provides remedies beyond 'strongly worded letters' and allows for disgorgement to return money to harmed consumers. Craig Peterson of the Utah Attorney General's Justice Division described prosecution challenges and supported making UPL a status offense in some cases to enable misdemeanor charges and restitution.

Opposition testimony included Seth Stewart, who argued the bill intersects with the state constitution's guarantee of open courts and warned the measure might limit who can assist litigants. The committee placed and adopted the substitute and then voted to send the bill to the Senate floor with a favorable recommendation; recorded committee votes showed unanimous passage on the motions to adopt and favorably recommend.

Next steps: HB260 as the adopted substitute will move to the full Senate for consideration.