MT SB31

Makes participation in Montana's Interest on Lawyer Trust Account (IOLTA) program voluntary instead of mandatory, requiring written client consent before attorneys can deposit funds into IOLTA accounts

Creates three options for handling client funds held by attorneys: non-interest-bearing trust accounts, interest-bearing accounts where interest is remitted to the client, or IOLTA accounts where interest goes to the Montana Justice Foundation

Challenges the Montana Supreme Court's mandatory IOLTA program as an unconstitutional tax, arguing the court has directed more than $8 million in client interest to the Montana Justice Foundation without legislative authorization

Asserts that only the Legislature has constitutional authority to levy taxes and appropriate funds under Article VIII, sections 1 and 14 of the Montana Constitution

Would be codified in Title 37, chapter 61, part 4 of Montana Code Annotated governing attorney conduct