Section 97-V. The New York interest on lawyer account (IOLA) fund

1.
  There is hereby established in the custody of the  state  comptroller  a
  fiduciary  fund  to  be known as the New York interest on lawyer account
  (IOLA) fund. A board of trustees shall be appointed  to  administer  the
  New York IOLA fund.
    2.  The  board  shall  consist  of  fifteen  members  appointed by the
  governor.  All members shall be residents of the state of New  York  and
  shall  be  knowledgeable  and  supportive of the delivery of civil legal
  services to the poor  and  the  improvement  of  the  administration  of
  justice.  At  least  eight of the members shall be attorneys licensed to
  practice law in the state of New York. Two members  shall  be  appointed
  upon  the  recommendation  of  the temporary president of the senate, at
  least one of whom shall be an attorney; two members shall  be  appointed
  upon  the recommendation of the speaker of the assembly, at least one of
  whom shall be an attorney;  one  member  shall  be  appointed  upon  the
  recommendation  of  the  minority  leader  of the senate; and one member
  shall be appointed upon the recommendation of the minority leader of the
  assembly. Two members shall be appointed upon the recommendation of  the
  court  of appeals, each of whom shall be an attorney. The governor shall
  designate one of the members of the board as chairman.
    a. The term of office shall be three years, provided, however, that of
  the members first appointed, five shall be appointed for terms  expiring
  on  December  thirty-first,  nineteen hundred eighty-four, five shall be
  appointed for terms expiring on December thirty-first, nineteen  hundred
  eighty-five  and  five shall be appointed for terms expiring on December
  thirty-first, nineteen hundred eighty-six. Vacancies shall be filled  in
  the manner of original appointments for the remainder of the term.
    b.  The  members  shall  receive no compensation for their services as
  members, but shall be reimbursed for their actual and necessary expenses
  incurred in the performance of their duties.
    c. The members shall be considered employees  of  the  state  for  the
  purposes of section seventeen of the public officers law.
    d. No member of the senate or assembly shall be eligible to serve as a
  member of the board.
    3.  a.  The board shall have the power to receive, hold and manage any
  moneys and property received from any source. It shall distribute  funds
  as  grants  and  contracts to not-for-profit tax-exempt entities for the
  purpose of delivering civil legal services to the poor and for  purposes
  related  to the improvement of the administration of justice, including,
  but not limited to, the provision of  civil  legal  services  to  groups
  currently  underserved  by  legal  services, such as the elderly and the
  disabled, and the enhancement  of  civil  legal  services  to  the  poor
  through  innovative  and  cost-effective means, such as volunteer lawyer
  programs and support and training services.
    b. No less than seventy-five percent of the total funds distributed in
  any  fiscal  year  shall  be  allocated  to  not-for-profit   tax-exempt
  providers  for  the  purpose  of  delivering civil legal services to the
  poor. The funds distributed annually to legal services  providers  shall
  be  allocated according to the geographical distribution of poor persons
  throughout the state based on the  latest  available  figures  from  the
  United States department of commerce, bureau of census, as prescribed by
  rules and regulations of the board of trustees.
    c.  The remaining funds shall be allocated for purposes related to the
  improvement of the administration of justice, including, but not limited
  to,  the  provision  of  civil  legal  services  to   groups   currently
  underserved by legal services, such as the elderly and the disabled, and
  the  enhancement  of civil legal services to the poor through innovative

  and cost-effective means, such as volunteer lawyer programs and  support
  and training services.
    d.  The board shall adopt rules and regulations for the administration
  of the IOLA fund to carry  out  the  purposes  and  provisions  of  this
  section  and  of section four hundred ninety-seven of the judiciary law.
  Such regulations shall be adopted in accordance with article two of  the
  state administrative procedure act.
    e.  The  board  may  employ  and  remove such personnel as it may deem
  necessary  for  the  performance  of  its  functions   and   fix   their
  compensation within the amounts made available therefor and may allocate
  funds  for the actual and necessary nonpersonnel administrative costs of
  the program. No more than ten percent of  the  funds  available  in  any
  fiscal  year  shall  be  spent on personnel and related services, and on
  necessary nonpersonnel administrative costs  of  the  program  provided,
  however,  that  such  limitations  may  be  waived  by  the board by the
  adoption of a resolution and such waiver shall remain  in  effect  until
  the  board  determines  by  a  subsequent resolution that the program is
  fully operational.
    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.
    g. Notwithstanding any statute or rule  to  the  contrary,  the  board
  shall  maintain  all  papers,  records,  documents  or other information
  identifying an attorney, client or beneficial owner of an  IOLA  account
  on  a  private  and  confidential  basis  and  shall  not  disclose such
  information unless  such  disclosure  is  necessary  to  accomplish  the
  purposes  of  this  section and section four hundred ninety-seven of the
  judiciary law, or unless disclosure  is  pursuant  to  compulsory  legal
  process.
    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.
    4.  a.  The board of trustees shall establish by regulation a specific
  dollar amount equivalent to  the  cost  of  administering  a  segregated
  interest  bearing  account for a client or beneficial owner. This dollar
  amount  may  be  used  by  participating  attorneys  as  a  guide   when
  determining whether the moneys are qualified funds.
    b.  The  board  of  trustees  shall  also  establish by regulation the
  qualifications of a recipient of funds and the nature and scope of civil
  legal services to be provided to poor persons  by  the  funds  disbursed
  under this section.
    5.  If  it  shall  appear to the satisfaction of the board of trustees
  that, because of a mistake of fact, error in  calculation  or  erroneous
  interpretation  of  the  provisions  of  this chapter or of section four
  hundred ninety-seven of the judiciary law, or of any regulation  adopted
  by  the  board,  a banking institution has remitted to the IOLA fund any
  moneys not required by such provisions to be remitted, the  board  shall
  refund  such  moneys  upon  application of any aggrieved party. Any such
  refund shall be paid from the IOLA fund without interest and without the
  deduction of any service charge, and shall  be  and  constitute  a  full
  satisfaction and discharge of any claim for such refund.
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