California § 6091.3 - Commencing January 1, 2026, upon the establishment of a new client trust account

§ 6091.3. Commencing January 1, 2026, upon the establishment of a new client trust account

(a) Commencing January 1, 2026, upon the establishment of a new client trust account associated with an attorney licensed to practice in California, the financial institution shall collect and retain within its books and records an attorney’s State Bar license number where the number is made available to the financial institution by the attorney associated with the client trust account in the format described in subdivision (c). (b) On or before March 1, 2026, and annually on or before March 1 thereafter, a financial institution shall electronically provide via secure file transport protocol or another format mutually acceptable to the financial institution and the State Bar, the following for every client trust account actually known to the financial institution associated with an attorney’s State Bar license number: (1) The name of the financial institution in which the client trust account is held. (2) The name of the attorney or law firm associated with the client trust account. (3) The account number of the client trust account. (4) The attorney’s State Bar license number associated with the trust account. (5) The trust account balance as of December 31 of the previous year. If December 31 is a holiday, the account balance as of the preceding business day may be reported. (c) On or before January 1, 2026, the State Bar shall create a standard form for use by an attorney licensed to practice in California wherein the attorney shall submit their State Bar license number and the name and account number of all applicable associated client trust accounts to a financial institution pursuant to subdivision (d). (d) On or before July 1, 2026, the State Bar shall require an attorney licensed to practice in California to furnish their State Bar license number to the financial institution where the attorney associated with the client trust account maintains the account. If the client trust account is maintained by a law firm, the law firm shall designate one of its members to provide the member’s State Bar license number. The attorney licensed to practice in California shall submit the completed form to satisfy the requirements in this subdivision to the financial institution pursuant to Section 684.115 of the Code of Civil Procedure. (e) A financial institution receiving a completed form containing a State Bar license number pursuant to subdivision (d) shall, in reliance on the license number, incorporate into its books and records the attorney’s State Bar license number for known client trust accounts where the license number was previously not collected. (f) This section is intended to supplement, and not eliminate nor replace, the remittance, reporting, and other obligations of a financial institution under Section 6212, which shall remain in full force and effect. This section does not affect the obligations of an attorney or a law firm relating to maintaining an interest-bearing IOLTA account under Section 6211, which shall remain in full force and effect. (g) No action shall lie against a financial institution or any of its officers, directors, or employees relating to their discharge of, or their alleged failure to discharge, any obligation under this section. (h) On or before November 30, 2026, and annually on or before November 30 thereafter, the State Bar shall submit to the Assembly Committee on Judiciary and the Senate Committee on Judiciary a report detailing the number of findings, mandatory corrective actions, and referrals for possible discipline that the State Bar made in the prior fiscal year pertaining to client trust accounts. The report shall be submitted in compliance with Section 9795 of the Government Code.