BILL ANALYSIS Ó
AB 1523
Page 1
ASSEMBLY THIRD READING
AB
1523 (Committee on Judiciary)
As Introduced March 10, 2015
Majority vote
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|Committee |Votes |Ayes |Noes |
|----------------+------+-----------------------+--------------------|
|Judiciary |8-1 |Mark Stone, Alejo, |Wagner |
| | |Chau, Chiu, Gallagher, | |
| | |Cristina Garcia, | |
| | |Holden, O'Donnell | |
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SUMMARY: Corrects an error regarding lawyer trust accounts.
Specifically, this bill substitutes the word "on" for the word
"in" with respect to interest-bearing lawyer trust funds.
EXISTING LAW requires attorneys to establish trust accounts for
specified client funds in the manner specified by the State Bar.
FISCAL EFFECT: None
COMMENTS: AB 940 (Judiciary Committee), Chapter 129, Statutes of
2009, sponsored by the State Bar, codified existing rules and
AB 1523
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practices regarding client funds in trust accounts, 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.
Analysis Prepared by:
Alison Merrilees / JUD. / (916) 319-2334 FN:
0000130