Rule 9.8.5 - State Bar Client Trust Account Protection Program(a)Client trust account protection program requirements The State Bar of California must establish and administer a Client Trust Account Protection Program for theprotection of client funds held in trust by a licensee that facilitates the State Bar's detection and deterrence ofclient trust accounting misconduct.(1) The State Bar must impose the following requirements under this program:(A) Annual Trust Account Certification - All licensees must annually (1) report whether or not, at any timeduring the prior year, they were responsible for client funds and funds entrusted by others under theprovisions of rule 1.15 of the Rules of Professional Conduct and (2) if they were responsible, certifythat they are knowledgeable about, and in compliance with, applicable rules and statutes governingclient trust accounts and the safekeeping of funds entrusted by clients and others; and(B) Annual Trust Account Registration - All licensees who were responsible for client funds and fundsentrusted by others under the provisions of rule 1.15 of the Rules of Professional Conduct must,annually, register each and every trust account in which the licensee held such funds at any timeduring the prior year by identifying account numbers and financial institutions in a manner prescribedby the State Bar for such reporting that will securely maintain the information submitted.(2) Among the other requirements the State Bar may impose under this program are the following:(A) Annual Self-Assessment - All licensees who were responsible, at any time during the prior year, for aclient trust account under the provisions of rule 1.15 of the Rules of Professional Conduct mustcomplete an annual self-assessment on client trust accounting duties and practices;(B) Compliance Review - If selected by the State Bar, a licensee must complete and submit to the StateBar a client trust accounting compliance review to be conducted by a certified public accountant at thelicensee's expense; and(C) Additional Actions - If selected by the State Bar, an additional action or actions based on the results ofa compliance review may include an investigative audit, a notice of mandatory corrective action, and areferral for disciplinary action.(b) Authorization for the Board of Trustees of the State Bar to adopt rules and regulations The Board of Trustees of the State Bar is authorized to formulate and adopt such rules and regulations as itdeems necessary and appropriate to comply with this rule, including a rule or regulation that defines a licenseewho is responsible for client funds and funds entrusted by others under the provisions of rule 1.15 of the Rules ofProfessional Conduct.(c)Failure to comply with program A licensee who fails to satisfy the requirements of this program must be enrolled as an inactive licensee of theState Bar under the rules to be adopted by the Board of Trustees of the State Bar. Inactive enrollment imposedfor noncompliance with the requirements of this program is cumulative and does not preclude a disciplinaryproceeding or other actions for violations of the State Bar Act, the Rules of Professional Conduct, or otherapplicable laws.(d)Fees and penalties The State Bar has the authority to set and collect appropriate fees and penalties.Rule 9.8.5. adopted effective 1/1/2023.