New York S 9129: Directs the chief administrator of the courts to develop and implement a random audit compliance program to conduct periodic financial audits of law firms; and provides for funding of the program

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 Speaker Carl E. Heastie

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S09129 Summary:

BILL NOS09129B

&nbsp

SAME ASSAME AS A10145-B

&nbsp

SPONSORBYNOE

&nbsp

COSPNSR

&nbsp

MLTSPNSR

&nbsp

Add §212-a, amd §212, Judy L; amd §97-t, St Fin L

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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 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.

Go to top S09129 Actions:

BILL NOS09129B

&nbsp

02/05/2026REFERRED TO JUDICIARY

02/26/2026AMEND AND RECOMMIT TO JUDICIARY

02/26/2026PRINT NUMBER 9129A

04/10/2026AMEND AND RECOMMIT TO JUDICIARY

04/10/2026PRINT NUMBER 9129B

Go to topS09129 Committee&nbspVotes:

Go to topS09129 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topS09129 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 9129--B

 IN SENATE

 February 5, 2026
 ___________

 Introduced by Sen. BYNOE -- read twice and ordered printed, and when
 printed to be committed to the Committee on Judiciary -- committee
 discharged, bill amended, ordered reprinted as amended and recommitted
 to said committee -- committee discharged, bill amended, ordered
 reprinted as amended and recommitted to said committee

 AN ACT to amend the judiciary law, in relation to directing the chief
 administrator of the courts to develop and implement a random audit
 compliance program to conduct periodic audits of law firm financial
 accounts; and to amend the state finance law, in relation to the fund-
 ing of the random audit compliance program

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. The judiciary law is amended by adding a new section 212-a
 2 to read as follows:
 3 § 212-a. Random audit compliance program. 1. The chief administrator
 4 of the courts shall develop and implement a state-wide random audit
 5 compliance program ("the program") to conduct periodic audits of law
 6 firms that engage in the private practice and create and manage escrow
 7 trust accounts within the state of New York. The purpose of the program
 8 is to ensure that law firms appropriately handle client funds, maintain
 9 required records of clients' funds and attorneys' fees as described in
 10 the rules of court and the rules of professional conduct, and utilize
 11 generally accepted accounting practice in managing their trust accounts.
 12 These goals will be accomplished through:
 13 (a) educating New York attorneys on the proper method of compliance
 14 with the record keeping and ethical responsibilities under the New York
 15 rules of professional conduct, 22 NYCRR 1200, Rule 1.15;
 16 (b) providing a deterrent effect due to the presence of an active
 17 auditing program and an incentive to keep good records and to avoid
 18 temptation to misuse trust funds; and
 19 (c) the detection of misappropriation of client funds.
 20 2. The chief administrator shall consult with the director of the
 21 office of information technology services, or such director's designee,
 22 to develop and implement a software program that will randomly select
 23 law firms within the state for audit. Alternatively, the chief adminis-
 24 trator may enter into an agreement to license for use an existing
 25 program providing such capability. The program must ensure that the

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD14666-05-6

 S. 9129--B 2

 1 selection process provides that every law firm, regardless of size, has
 2 an equal chance of being selected for an audit. The program must also
 3 ensure that a law firm may only be selected for random audit once in a
 4 five-year period. This provision shall not limit the ability to audit a
 5 law firm for cause during the same five-year period.
 6 3. An audit of a law firm that maintains more than one location within
 7 the state shall entail an audit of all offices located within the state.
 8 An audit of a law firm that maintains a location within the state and
 9 one or more locations outside of the state shall entail an audit of on