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A1194Assembly2025-2026 Session

Limit IOLA Fund Spending

Official title

“Relates to the use of funds and payments from the IOLA fund”

Sponsor Michaelle C. SolagesAD-22+4 co-sponsors
Status
In Assembly Committee
Governmental Operations
Impact
4/10
Low
Passage
16%

Bill progress

Step 2 of 7

In committee · Governmental Operations

What's happening

This bill restricts IOLA fund use and payments exclusively to civil legal services for the poor, prohibiting any other uses.

Why it matters

  1. Tightens oversight and accountability. by ensuring IOLA funds cannot be diverted to any purpose except civil legal services for the poor, reducing risk of misappropriation or mission drift.

  2. Could impact organizations currently receiving IOLA funding for non-civil-legal-service purposes,. forcing them to seek alternative funding sources or discontinue such programs.

  3. May improve access to justice for low-income New Yorkers. by guaranteeing that all IOLA resources are dedicated solely to civil legal aid, potentially increasing funding stability and service coverage for those in need.

  4. Establishes clear legal boundaries. that could simplify compliance and auditing for IOLA fund administrators and recipients, but may also limit flexibility in response to evolving community needs.

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Who cares

Headline styles

Limit IOLA Fund Spending

Plain English, a few words. Used as the page title.

Sponsors

Primary sponsor
Michaelle C. Solages

Assembly Member · Assembly District 22

Chair, Local Governments

History

  1. Referred to governmental operations
  2. Referred to governmental operations

Full text

1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗

STATE OF NEW YORK

1194

2025-2026 Regular Sessions

IN ASSEMBLY

January 9, 2025

Introduced by M. of A. SOLAGES, ROSENTHAL, RAGA, SIMONE, LUPARDO -- read once and referred to the Committee on Governmental Operations

AN ACT to amend the state finance law, in relation to the use of funds and payments from the IOLA fund

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

Section 1. Paragraph f of subdivision 3 of section 97-v of the state finance law, as added by chapter 659 of the laws of 1983, is amended to read as follows:

f. The board shall insure that grants and contracts are made with not-for-profit providers of civil legal services for the poor to provide stable, economical and high quality delivery of civil legal services to the poor throughout the state. Notwithstanding any provision of law, rule or regulation to the contrary, funds shall not be used for any other purpose other than as stated in this section.

§ 2. Paragraph h of subdivision 3 of section 97-v of the state finance law, as added by chapter 659 of the laws of 1983, is amended to read as follows:

h. All payments from the IOLA fund shall be made by the state comptroller upon certification and authorization of the board of trustees of the fund. Notwithstanding any provision of law, rule or regulation to the contrary, payments shall not be used for any other purpose other than as stated in this section.

§ 3. This act shall take effect on the first of April next succeeding the date on which it shall have become a law.

EXPLANATION--Matter in italics (underscored) is new; matter in brackets

[ ] is old law to be omitted.

LBD03321-01-5

Reflowed for reading: line numbers and page breaks removed. Cite the official text.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.