Montana legislation · 2025 Regular Session
Montana SB31: IOLTA Bill providing Interest back to client
Status: Failed, May 23, 2025
What the bill says
A bill for an act entitled: "an act providing options for the handling of interest on attorney trust accounts; and providing that participation in the interest on lawyer trust account program is voluntary.".
From the engrossed text:
A BILL FOR AN ACT ENTITLED: "AN ACT PROVIDING OPTIONS FOR THE HANDLING OF INTEREST ON ATTORNEY TRUST ACCOUNTS; AND PROVIDING THAT PARTICIPATION IN THE INTEREST ON LAWYER TRUST ACCOUNT PROGRAM IS VOLUNTARY." WHEREAS, when lawyers hold funds that belong to a client, the lawyers shall deposit the funds into a trust account where the money should be held in trust for the client; and WHEREAS, the Montana Supreme Court ordered that Montana lawyers deposit their clients' money in a specialized interest-bearing trust account called an IOLTA account (Interest on Lawyer Trust Account); and WHEREAS, in an IOLTA account, the interest on the client's money is not paid to the client; instead, the Montana Supreme Court ordered that the interest on the client's money from the IOLTA program must be paid to the Montana Justice Foundation, an organization of the Montana Supreme Court's choosing; and WHEREAS, before the Montana Supreme Court's order making participation in the IOLTA program mandatory, participation was voluntary; and WHEREAS, through the IOLTA program, the Montana Supreme Court in essence taxes the client's interest income at a rate of 100% and then spends the client's money on its favored organization; and WHEREAS, the Montana Legislature is the only body empowered by Article VIII, section 1, of the Montana Constitution to levy taxes, and Article VIII, section …
Sponsors
- Usher, Barry (R, 19) · primary sponsor
Latest actions
- : (S) Died in Process
- : (S) Missed Deadline for General Bill Transmittal
- : (S) 2nd Reading Indefinitely Postponed
- : (S) 2nd Reading
- : (S) Scheduled for 2nd Reading
- : (S) Committee Report
- : (S) Committee Executive Action
- : (S) Hearing
- : (S) Referred to Committee
- : (S) 1st Reading
Votes
- Indefinitely Postpone -McGillvray (March 6, 2025): 30 yea, 19 nay, passed
- Do Pass (March 6, 2025): 22 yea, 28 nay, failed
Subjects: Courts
Common questions
- What is SB31?
- SB31 is a bill in the Montana Legislature (2025 Regular Session): IOLTA Bill providing Interest back to client.
- What does SB31 do?
- In its own words: A bill for an act entitled: "an act providing options for the handling of interest on attorney trust accounts; and providing that participation in the interest on lawyer trust account program is voluntary.".
- What is the status of SB31?
- Failed as of May 23, 2025. Latest action: (S) Died in Process (May 23, 2025).
- Who sponsored SB31?
- Usher, Barry (R, 19).
- Where is the official record for SB31?
- On the Montana Legislature website: https://bills.legmt.gov/#/laws/bill/2/LC0621
Source: official Montana record. Tracked by Delilah, AI for legislation across all 50 states and Congress.