N.Y. State Finance Law § 97-v: The New York interest on lawyer account (IOLA) fund

* § 97-v. The New York interest on lawyer account (IOLA) fund. 1.

There is hereby established in the custody of the state comptroller a

fiduciary fund to be known as the New York interest on lawyer account

(IOLA) fund. A board of trustees shall be appointed to administer the

New York IOLA fund.

2. The board shall consist of fifteen members appointed by the

governor. All members shall be residents of the state of New York and

shall be knowledgeable and supportive of the delivery of civil legal

services to the poor and the improvement of the administration of

justice. At least eight of the members shall be attorneys licensed to

practice law in the state of New York. Two members shall be appointed

upon the recommendation of the temporary president of the senate, at

least one of whom shall be an attorney; two members shall be appointed

upon the recommendation of the speaker of the assembly, at least one of

whom shall be an attorney; one member shall be appointed upon the

recommendation of the minority leader of the senate; and one member

shall be appointed upon the recommendation of the minority leader of the

assembly. Two members shall be appointed upon the recommendation of the

court of appeals, each of whom shall be an attorney. The governor shall

designate one of the members of the board as chairman.

a. The term of office shall be three years, provided, however, that of

the members first appointed, five shall be appointed for terms expiring

on December thirty-first, nineteen hundred eighty-four, five shall be

appointed for terms expiring on December thirty-first, nineteen hundred

eighty-five and five shall be appointed for terms expiring on December

thirty-first, nineteen hundred eighty-six. Vacancies shall be filled in

the manner of original appointments for the remainder of the term.

b. The members shall receive no compensation for their services as

members, but shall be reimbursed for their actual and necessary expenses

incurred in the performance of their duties.

c. The members shall be considered employees of the state for the

purposes of section seventeen of the public officers law.

d. No member of the senate or assembly shall be eligible to serve as a

member of the board.

3. a. The board shall have the power to receive, hold and manage any

moneys and property received from any source. It shall distribute funds

as grants and contracts to not-for-profit tax-exempt entities for the

purpose of delivering civil legal services to the poor and for purposes

related to the improvement of the administration of justice, including,

but not limited to, the provision of civil legal services to groups

currently underserved by legal services, such as the elderly and the

disabled, and the enhancement of civil legal services to the poor

through innovative and cost-effective means, such as volunteer lawyer

programs and support and training services.

b. No less than seventy-five percent of the total funds distributed in

any fiscal year shall be allocated to not-for-profit tax-exempt

providers for the purpose of delivering civil legal services to the

poor. The funds distributed annually to legal services providers shall

be allocated according to the geographical distribution of poor persons

throughout the state based on the latest available figures from the

United States department of commerce, bureau of census, as prescribed by

rules and regulations of the board of trustees.

c. The remaining funds shall be allocated for purposes related to the

improvement of the administration of justice, including, but not limited

to, the provision of civil legal services to groups currently

underserved by legal services, such as the elderly and the disabled, and

the enhancement of civil legal services to the poor through innovative

and cost-effective means, such as volunteer lawyer programs and support

and training services.

d. The board shall adopt rules and regulations for the administration

of the IOLA fund to carry out the purposes and provisions of this

section and of section four hundred ninety-seven of the judiciary law.

Such regulations shall be adopted in accordance with article two of the

state administrative procedure act.

e. The board may employ and remove such personnel as it may deem

necessary for the performance of its functions and fix their

compensation within the amounts made available therefor and may allocate

funds for the actual and necessary nonpersonnel administrative costs of

the program. No more than ten percent of the funds available in any

fiscal year shall be spent on personnel and related services, and on

necessary nonpersonnel administrative costs of the program provided,

however, that such limitations may be waived by the board by the

adoption of a resolution and such waiver shall remain in effect until

the board determines by a subsequent resolution that the program is

fully operational.

f. The board shall insure that grants and contracts are made with

not-for-profit providers of civil legal services for the poor to provide

stable, economical and high quality delivery of civil legal services to

the poor throughout the state.

g. Notwithstanding any statute or rule to the contrary, the board

shall maintain all papers, records, documents or other information

identifying an attorney, client or beneficial owner of an IOLA account

on a private and confidential basis and shall not disclose such

information unless such disclosure is necessary to accomplish the

purposes of this section and section four hundred ninety-seven of the

judiciary law, or unless disclosure is pursuant to compulsory legal

process.

h. All payments from the IOLA fund shall be made by the state

comptroller upon certification and authorization of the board of

trustees of the fund.

4. a. The board of trustees shall establish by regulation a specific

dollar amount equivalent to the cost of administering a segregated

interest bearing account for a client or beneficial owner. This dollar

amount may be used by participating attorneys as a guide when

determining whether the moneys are qualified funds.

b. The board of trustees shall also establish by regulation the

qualifications of a recipient of funds and the nature and scope of civil

legal services to be provided to poor persons by the funds disbursed

under this section.

5. If it shall appear to the satisfaction of the board of trustees

that, because of a mistake of fact, error in calculation or erroneous

interpretation of the provisions of this chapter or of section four

hundred ninety-seven of the judiciary law, or of any regulation adopted

by the board, a banking institution has remitted to the IOLA fund any

moneys not required by such provisions to be remitted, the board shall

refund such moneys upon application of any aggrieved party. Any such

refund shall be paid from the IOLA fund without interest and without the

deduction of any service charge, and shall be and constitute a full

satisfaction and discharge of any claim for such refund.

* NB There are 2 § 97-v's