BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2766
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 2766 (Judiciary)
          As Introduced February 25, 2010
          Majority vote 

           JUDICIARY           10-0                                        
           
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          |Ayes:|Feuer, Tran, Brownley,    |     |                          |
          |     |Evans, Hagman, Jones,     |     |                          |
          |     |Knight, Huffman, Monning, |     |                          |
          |     |Nava                      |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           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.  
           

           FISCAL EFFECT  :  None

           COMMENTS  :  Last year, AB 940 (Judiciary Committee), 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.


           Analysis Prepared by  :    Kevin G. Baker / JUD. / (916) 319-2334 

                                                               FN:  0004047