UNITED STATES OF AMERICA

Federal Trade Commission	Department Of Justice

Washington, DC 20580	Washington, DC 20530

March 28, 2003

The Honorable William J. Murphy

Speaker of the House of Representatives

Speaker's Office

State House

Providence, Rhode Island 02903

The Honorable Gordon D. Fox

Majority Leader of the House of Representatives

Majority Leader's Office

State House

Providence, Rhode Island 02903

The Honorable Robert A. Watson

Minority Leader of the House of Representatives

Minority Leader's Office

State House

Providence, Rhode Island 02903

Members of the House Judiciary Committee

c/o The Honorable Robert E. Flaherty

Chairperson, Committee on the Judiciary

House of Representatives

State House, Room 206

Providence, Rhode Island 02903

The Honorable Rene R. Menard

House of Representatives

Providence, Rhode Island 02903

Re:	Proposed Bills H.5936 and H.5639, Proposed Restrictions on

Competition From Non-Attorneys In Real Estate Closing Activities

Dear Speaker and Members of the House of Representatives:

We understand that the Rhode Island House of Representatives is considering two bills that would amend the definition of "practice of law" to require lawyers to represent buyers in virtually all aspects of the real estate closing process. These bills are H.5936 and H.5639, both entitled, "An Act Relating To Criminal Offenses - Law Practice."

Both bills are very similar to H.7462, considered by the House of Representatives last year. The Department of Justice and the Federal Trade Commission urged the House to reject that bill because it would have restrained competition between lawyers and nonlawyers for real estate closing business, likely resulting in increased costs for Rhode Island consumers. The current bills raise many of the same concerns as H.7462 did. Accordingly, we urge the General Assembly to reject the current legislation for the reasons stated in our March 29, 2002 letter.1 A copy of our 2002 letter is attached.

Sincerely yours,

R. Hewitt Pate

Acting Assistant Attorney General

United States Department of Justice

Antitrust Division

By Order of the

Federal Trade Commission,

Timothy J. Muris

Chairman