BILL NUMBER: S9130

SPONSOR: RYAN
 
TITLE OF BILL:

An act to amend the state finance law, in relation to allowing certain
payments from the IOLA fund to be made without appropriation by law

 
PURPOSE:

To allow IOLA appropriations to occur outside the budget process, ensur-
ing that the original legislative intent of IOLA is adhered to

 
SUMMARY OF PROVISIONS:

Section 1: amends paragraph h of subdivision 3 of section 97-v of the
state finance law by allowing IOLA appropriations to occur outside of
the budget process.

 
JUSTIFICATION:

              

The Interest on Lawyers Trust Accounts Fund (IOLA Fund) is a state
created means of providing additional financial support to civil legal
organizations, which in turn, increases access to justice across New
York State. While the IOLA Fund is state created, the money in the fund
does not come from the state. As its name implies, the money in the IOLA
Fund comes from the interest generated on accounts in the care of attor-
neys on behalf of their clients. When attorneys act as fiduciaries for
their clients' money, they must put this money into an interest bearing
account, either for the benefit of the clients or for the IOLA fund. The
interest from the accounts to benefit the IOLA fund is pooled and used
to support legal services organizations across the state.

These organizations provide crucial civil legal services to low-income
New Yorkers, across areas including consumer protection, education,
employment, family, health, housing, immigration, income maintenance,
and individual rights. This bill will ensure that the IOLA board of
trustees is able to act on their authority to make appropriations to the
legal services organizations, in line with the state's intentions when
IOLA was created, and to do so outside of the budget process.

 
LEGISLATIVE HISTORY:

New bill.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.