BILL ANALYSIS Ó AB 1523 Page 1 ASSEMBLY THIRD READING AB 1523 (Committee on Judiciary) As Introduced March 10, 2015 Majority vote -------------------------------------------------------------------- |Committee |Votes |Ayes |Noes | |----------------+------+-----------------------+--------------------| |Judiciary |8-1 |Mark Stone, Alejo, |Wagner | | | |Chau, Chiu, Gallagher, | | | | |Cristina Garcia, | | | | |Holden, O'Donnell | | -------------------------------------------------------------------- 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 Page 2 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