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HB 173

Interest on Trust Accounts Program Interest Rates

2025 Regular Session Introduced by Robbie Brackett

HB 173 modifies Florida's IOTA program interest rate policies affecting legal aid funding, but died in committee without advancing to full consideration.

Died in Civil Justice & Claims Subcommittee
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Bill Summary · HB 173

Legislative bill overview

HB 173 proposes modifications to Florida's Interest on Trust Accounts (IOTA) program, which requires attorneys to deposit client funds into interest-bearing accounts with earnings directed to legal aid and pro bono services. The bill addresses how interest rates are determined and allocated within this trust account system.

Why is this important

IOTA programs generate millions in funding annually for legal services to low-income Floridians. Changes to interest rate structures or allocation mechanisms directly affect the revenue available for public interest law, making this a consequential issue for access to justice funding even though the bill died in committee.

Potential points of contention

  • Interest rate environment impact: Lower prevailing interest rates reduce IOTA program revenues; the bill may reflect concerns about declining earnings in a higher-rate environment or establish new baseline mechanisms that could be contentious
  • Allocation of funds: Disputes over how interest proceeds are distributed among legal aid organizations, bar associations, and other recipients
  • Administrative burden: Changes to IOTA administration could impose compliance costs on law firms or create reporting complications

Compiled from official sources — confirm details with the bill’s official record.

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