The Judicial Branch supports Senate Bill 1160, An Act Concerning the Interest Earned on Lawyers’ Clients’ Funds Account Program, as it will increase the interest available to fund legal services organizations. 

This proposal, which was submitted to the Judiciary Committee by the Connecticut Bar Foundation and is based on national model language, would broaden the language on IOLTA accounts to cover more funds.  It would: 

• Eliminate language, not followed by any other state, which limits the requirement to establish IOLTA accounts to funds less than $10,000.00 or expected to be held for not more than 60 business days.

• Substitute language allowing Connecticut attorneys to deposit client funds in IOLTA accounts if they determine in good faith that those funds will not earn net income for the client in excess of the costs of opening and maintaining the account.
• Include a list of mandatory factors that attorneys must consider in making this good faith determination.  The amendment provides clear guidance to attorneys in Connecticut regarding client funds which must be placed in IOLTA accounts.

I urge the Committee to act favorably on this proposal.