No. SB 1000
Filed under Taxes & Budget.
Trust Fund Interest for Purposes Approved by the Supreme Court; Authorizing financial institutions to hold funds in specified trust accounts used for specified purposes expressly authorized by Supreme Court rule; requiring certain entities to use interest and dividends for specified purposes; requiring certain financial institutions to pay specified interest or dividends, etc.
Plain English Summary
AI-GENERATEDBanks must pay a set interest rate on lawyer trust accounts, calculated from the Wall Street Journal prime rate.
The Supreme Court entity must use the collected interest to provide free legal services to low-income individuals.
The interest rate is capped at 1.5 percent and floored at 0.25 percent, net of all bank fees.
This new law takes effect on July 1, 2026, creating a new statutory section 655.98.
AIRequires financial institutions to pay a specific interest rate on lawyer trust accounts, calculated as the Wall Street Journal prime rate minus 300 basis points, with a floor of 0.25 percent and a ceiling of 1.5 percent.
AIMandates that the Supreme Court-established entity use the collected interest or dividends to provide free legal services to low-income individuals or for other purposes expressly authorized by Supreme Court rule.
AIAuthorizes financial institutions to hold funds in interest-bearing trust accounts for lawyers or law firms, provided the institution remits the interest or dividends to the Supreme Court-established entity.