BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2766
                                                                  Page 1

          Date of Hearing:  April 27, 2010

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Mike Feuer, Chair
                AB 2766 (Judiciary) - As Introduced: February 25, 2010

                                  PROPOSED CONSENT
                                           
          SUBJECT  :  ATTORNEYS: TRUST ACCOUNTS

           KEY ISSUE  :  SHOULD AN ERROR IN THE TRUST ACCOUNTS LAW BE  
          CORRECTED?

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

                                      SYNOPSIS
          
          This non-controversial bill corrects a technical error in the  
          Committee's AB 940 (Judiciary) last year in order to avoid  
          potential confusion.  Attorneys are required to hold certain  
          client funds in trust accounts.  AB 940 was adopted unanimously  
          in both houses to clarify and update those rules.  Unfortunately  
          that bill was codified with a typographical error, using the  
          word "on" where the word "in" was intended.  As with last year's  
          measure, this bill has no opposition. 

           SUMMARY  :  Corrects an error regarding lawyer trust accounts.   
          Specifically,  this bill  substitutes the word "in" for the word  
          "on" 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.  
           (Bus. & Prof. Code section 6213.)

           COMMENTS  :  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.









                                                                  AB 2766
                                                                  Page 2

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  Kevin G. Baker / JUD. / (916) 319-2334