Senate Banking and Insurance Committee moves IOTA bill
Sen. Erin Grall
A bill that would settle a dispute over the interest rate banks pay on attorney trust accounts moved a step closer Wednesday to final passage.
The debate centers on the Supreme Court’s IOTA program that each year generates dollars to provide legal services to indigent and low-income Floridians.
With no discussion and no debate, the Senate Banking and Insurance Committee voted unanimously February 4 to approve SB 1000 by Republican Sen. Erin Grall, a Ft. Pierce attorney.
“The bill sets a floor of 25 basis points and ceiling of 150 basis points, based on the Wall Street Journal Prime, for trust accounts held by attorneys,” Grall said. “That is the bill.”
SB 1000 would require financial institutions, after all fees and charges are assessed, to set interest at the Wall Street Journal Prime Rate in effect on the first business day of each month, less 300 basis points, or 3.0%, with a minimum floor rate of 0.25%, and a maximum ceiling rate of 1.5%.
The money flows to the non-profit Funding Florida Legal Aid for distribution to legal aid organizations throughout the state. The IOTA program is the state’s only dedicated source of legal aid funding.
“By establishing the floor rate, [Funding Florida Legal Aid] is assured that it will receive funds to finance the IOTA program during periods of low interest rates,” notes a legislative staff analysis. “By establishing a ceiling rate, the financial institutions are assured that they can operate the IOTA accounts at profit over the long term.”
SB 1000 and a companion, HB 893 by Republican Rep. Traci Koster, a Tampa attorney, would also align Florida law with a proposed amendment to Bar Rule 5-1.1 (Interest on Trust Accounts) that The Florida Bar filed with the Supreme Court in November 2025. The amendment remains pending.
