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Bill

A 7696

Prohibits a service charge or minimum balance requirement for attorney trust accounts

2025 Regular Session Introduced by Latrice Walker

Prohibits service charges and minimum balances on attorney trust accounts, protecting clients by eliminating bank fees for trust accounts.

REFERRED TO BANKS
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WeVote Research Nonpartisan
Bill Summary · A 7696

Summary of Bill A 7696

Overview

Bill A 7696 proposes to prohibit service charges or minimum balance requirements on attorney trust accounts. Attorney trust accounts are used by lawyers and law firms to hold client funds. If enacted, banks and financial institutions would be restricted from levying such charges on these specific accounts.

What the bill would do

  • Prohibit the charging of any service charges for attorney trust accounts.
  • Prohibit minimum balance requirements for attorney trust accounts.
  • The specific definitions, scope (which entities and types of accounts are covered), and enforcement details would be set forth in the final bill text.

Note: The current information does not include the detailed definitions, exemptions, penalties, or implementation timetable. The precise language would determine who exactly is protected, how “attorney trust accounts” are defined, and how compliance would be monitored and enforced.

Who would be affected

  • Attorneys and law firms that maintain client funds in trust accounts.
  • Banks and other financial institutions that hold or manage attorney trust accounts and would be subject to the prohibition on service charges and minimum balances.
  • Clients of attorneys, who would potentially benefit from reduced or eliminated fees associated with trust account management.

Legislative status and process

  • Introduced: April 8, 2025.
  • Status: Referred to the Banking (Banks) committee.
  • The bill has been listed with the same committee action on the same date (REFERRAL to BANKS), indicating it has not yet moved to floor consideration.
  • Sponsor: Latrice Walker (primary).
  • Related bills: Several prior-session related bills (A 6794, A 6253, A 3229, A 5212, A 2149) and companion Senate bill S 4090 (listed as companion). These relationships suggest ongoing interest in reforming attorney trust account rules across sessions.

Related or companion legislation

  • A 6794 (prior-session)
  • A 6253 (prior-session)
  • A 3229 (prior-session)
  • A 5212 (prior-session)
  • A 2149 (prior-session)
  • S 4090 (companion; listed twice)

Potential impact and considerations

  • Beneficiaries: Clients and the broader public could see reduced fees or more predictable handling costs for attorney trust accounts.
  • Industry impact: Banks and financial institutions may need to adjust products and pricing for attorney trust accounts to comply with the prohibition on service charges and minimum balances.
  • Implementation: The bill’s final text will define the scope, any exemptions (e.g., other types of trust accounts), enforcement mechanisms, penalties for noncompliance, and effective date.

Next steps

  • Monitor the bill’s progress in the Banks committee and any subsequent committee or floor votes.
  • Review the final bill text for precise definitions, exemptions, enforcement provisions, and any fiscal impact statements.
  • Consider related bills (including the companion S 4090) to understand a broader policy approach in this area.

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

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