BILL ANALYSIS
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|SENATE RULES COMMITTEE | AB 2766|
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THIRD READING
Bill No: AB 2766
Author: Assembly Judiciary Committee
Amended: As introduced
Vote: 21
SENATE JUDICIARY COMMITTEE : 4-0, 6/29/10
AYES: Corbett, Harman, Hancock, Leno
NO VOTE RECORDED: Walters
ASSEMBLY FLOOR : 69-1, 4/29/10 - See last page for vote
SUBJECT : Attorneys
SOURCE : State Bar of California
DIGEST : This bill corrects a technical error in existing
law concerning lawyer trust accounts by replacing the word
"in" with the word "on" with respect to interest-bearing
lawyer trust fund accounts.
ANALYSIS : Existing law, the State Bar Act, provides for
the licensure and regulation of the practice of law by the
State Bar of California, a public corporation. Existing law
requires an attorney or law firm receiving or disbursing
trust funds to establish and maintain an Interest on Lawyer
Trust Account (IOLTA) account, as defined, in which the
attorney or law firm is required to deposit or invest all
specified client deposits or funds. Existing law requires
an attorney or law firm establishing an IOLTA account to
report IOLTA account compliance and all other IOLTA account
CONTINUED
AB 2766
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information required by the State Bar in the manner
specified by the State Bar. This bill makes a technical
correction to a definition related to IOLTA accounts
FISCAL EFFECT : Appropriation: No Fiscal Com.: No
Local: No
SUPPORT : (Verified 7/1/10)
State Bar of California (source)
ARGUMENTS IN SUPPORT : According to the author's office:
Last year, AB 940 (Judiciary), sponsored by the State
Bar to codify existing rules and practices, passed
both houses unanimously and was signed by the
Governor. Unfortunately, that bill was inadvertently
chaptered with a typographical error, using the word
"in" when the word "on" was intended with respect to
interest rates and dividends. Because interest and
dividends are correctly paid "on" an account, not "in"
an account, it would be prudent to correct this error
in order to promote compliance and avoid unnecessary
confusion.
ASSEMBLY FLOOR :
AYES: Ammiano, Arambula, Beall, Tom Berryhill, Blakeslee,
Block, Blumenfield, Bradford, Brownley, Buchanan, Charles
Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De
La Torre, De Leon, DeVore, Emmerson, Eng, Evans, Feuer,
Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,
Galgiani, Garrick, Gilmore, Hagman, Hall, Hayashi,
Hernandez, Hill, Huber, Huffman, Jeffries, Knight, Lieu,
Logue, Ma, Mendoza, Miller, Monning, Nava, Nestande,
Niello, Nielsen, Norby, V. Manuel Perez, Portantino,
Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio,
Audra Strickland, Swanson, Torlakson, Torres, Tran,
Yamada, John A. Perez
NOES: Anderson
NO VOTE RECORDED: Adams, Bass, Bill Berryhill, Caballero,
Harkey, Jones, Bonnie Lowenthal, Torrico, Villines
AB 2766
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RJG:nl 7/1/10 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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