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NY S09129
Bill
Status
2/5/2026
Primary Sponsor
Siela Bynoe
Click for details
AI Summary
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Chief administrator of New York courts must develop a statewide random audit compliance program for law firms that manage real estate escrow trust accounts and IOLTA accounts
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Audits will cover a two-year period and require firms to provide records for all trust, business, and fiduciary accounts including bank statements, cancelled checks, deposit slips, and client trust ledgers
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Software must ensure equal selection probability for all firms regardless of size, with each firm eligible for random audit only once per five-year period (audits for cause still permitted)
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Minor deficiencies require corrective action within 45 days; major deficiencies such as misappropriation of client funds trigger immediate referral to the attorney grievance committee
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Program will be housed within the Lawyers' Fund for Client Protection, which will provide funding; auditors must hold advanced accounting degrees or fraud examination certifications
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 9129A
2/26/2026