WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · LC 2648

Legislative bill overview

LC 2648 would prohibit Montana's Supreme Court from imposing or collecting taxes on interest earned from lawyer trust accounts (commonly called IOLTA accounts). These accounts hold client funds temporarily during legal representation, and the interest generated has traditionally been used to fund legal aid and public interest law programs.

Why is this important

IOLTA programs fund approximately $1.2 billion annually in civil legal services nationwide, providing access to justice for low-income individuals who cannot afford lawyers. Restricting the Supreme Court's authority over these accounts could significantly reduce funding for legal aid organizations, affecting vulnerable populations seeking help with family law, housing, and other critical matters.

Potential points of contention

  • Funding impact: Legal aid organizations would lose a major revenue source, potentially forcing service reductions for low-income Montanans
  • Institutional authority: The bill challenges the Supreme Court's historical regulatory authority over attorney conduct and trust account management
  • Constitutional questions: Whether the legislature can restrict a co-equal branch's powers over court administration and attorney discipline
  • Alternative funding: No proposed alternative funding mechanism for legal aid services currently supported by IOLTA interest

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

Sign in to ask a question.