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NY A10145

Bill

Status

Introduced

2/12/2026

Primary Sponsor

Charles Lavine

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Origin

Assembly

2025-2026 General Assembly

AI Summary

  • Directs the chief administrator of the courts to develop a statewide random audit compliance program for periodic financial audits of all law firms practicing in New York State

  • Requires audits to review IOLTA trust accounts, business accounts, and fiduciary accounts over a two-year period to ensure proper handling of client funds and compliance with professional conduct rules

  • Mandates that every law firm has an equal chance of random selection, with firms limited to one random audit per five-year period (audits for cause still permitted)

  • Establishes a 45-day response period for firms to correct minor deficiencies; major deficiencies such as misappropriation of funds must be immediately referred to the attorney grievance committee

  • Funds the program through the Lawyers' Fund for Client Protection and requires auditors to hold advanced accounting degrees or fraud examination certifications; takes effect 180 days after enactment

Legislative Description

Directs the chief administrator of the courts to develop and implement a random audit compliance program to conduct periodic financial audits of law firms that engage in the private practice and create and manage real estate escrow trust accounts in the state in order to ensure proper handling of IOLTA accounts; provides for the funding of the random audit compliance program.

Last Action

print number 10145a

2/25/2026

Committee Referrals

Judiciary2/12/2026

Full Bill Text

No bill text available