Bill > A01194

This bill amends the state finance law to reinforce restrictions on the use of the IOLA (Interest on Lawyers' Accounts) fund, which is a mechanism that generates funds from interest earned on lawyers' client trust accounts to support civil legal services for low-income individuals. The bill specifically adds language to two sections of the law emphasizing that funds and payments from the IOLA fund can only be used for their intended purpose of providing civil legal services to the poor, and explicitly prohibits using these funds for any other purpose regardless of any conflicting laws, rules, or regulations. The amendments aim to create a clear, unambiguous mandate that IOLA funds must be exclusively directed towards supporting legal aid services for economically disadvantaged people throughout the state, with payments made by the state comptroller upon authorization by the fund's board of trustees. The bill will take effect on the first of April following its enactment.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/A1194