Senate Bill No. [insert bill number] proposes to amend the handling of interest on attorney trust accounts in Montana by making participation in the Interest on Lawyer Trust Account (IOLTA) program voluntary rather than mandatory. The bill asserts that the Montana Supreme Court's previous mandate for lawyers to deposit client funds into IOLTA accounts, where the interest is directed to the Montana Justice Foundation, constitutes an unconstitutional tax and appropriation of client funds. The bill emphasizes the need for client consent in the management of their funds, aligning with ethical principles of lawyer conduct.

The new legal language introduced in the bill allows lawyers, with written consent from clients, to choose from three options for depositing client funds: a non-interest-bearing trust account, an interest-bearing trust account where the interest belongs to the client, or participation in the IOLTA program. This change aims to ensure that clients have control over their funds and that the handling of interest on these accounts complies with constitutional provisions regarding taxation and appropriation. The bill also includes a codification instruction to integrate this new section into existing law.