Legislature(2017 - 2018)SENATE FINANCE 532

04/23/2018 01:30 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ HB 219 CRIM HIST CHECK: ST EMPLOYEES/CONTRACTORS TELECONFERENCED
Heard & Held
+ HB 106 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Heard & Held
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= HB 267 RELEASE HUNTING/FISHING RECORDS TO MUNI TELECONFERENCED
Moved CSHB 267(RES) Out of Committee
HOUSE BILL NO. 106                                                                                                            
                                                                                                                                
     "An Act allowing appropriations to the civil legal                                                                         
     services fund from court filing fees."                                                                                     
                                                                                                                                
2:36:22 PM                                                                                                                    
                                                                                                                                
REPRESENTATIVE MATT  CLAMAN, SPONSOR, thanked  the committee                                                                    
for  hearing  the bill.  He  explained  the legislation.  He                                                                    
communicated that the bill  would safeguard Alaskans' access                                                                    
to  the  civil  justice  system by  creating  a  stable  and                                                                    
sustainable mechanism for funding  the Alaska Legal Services                                                                    
Corporation (ALSC),  protecting those  who cannot  afford to                                                                    
hire an  attorney of  their own. The  ALSC provided  help to                                                                    
seniors, veterans,  disabled Alaskans, children,  low income                                                                    
workers,  consumers,  and  domestic  violence  victims.  The                                                                    
Senate  Judiciary  Committee  Substitute [SCS  HB  106(JUD)]                                                                    
allowed  the legislature  to appropriate  5  percent of  the                                                                    
filing  fees paid  to  the Alaska  Court  System during  the                                                                    
previous fiscal  year into the already  existing Civil Legal                                                                    
Services Fund.  He furthered  that the  fund was  created in                                                                    
2007  with  bipartisan support  to  help  ensure that  civil                                                                    
legal   aid   was   available  to   Alaska's   disadvantaged                                                                    
population.  He elaborated  that deposits  to the  fund were                                                                    
generated from  15 percent of  civil punitive  damage awards                                                                    
at the  discretion of the  legislature. The  legislature was                                                                    
authorized  to distribute  the funds  to organizations  that                                                                    
provided  civil legal  services to  low income  Alaskans. In                                                                    
2011, ALSC received its only  appropriation from the fund in                                                                    
the amount of $110 thousand.  The amount was insufficient to                                                                    
address the critical unmet need  for civil legal assistance.                                                                    
He noted that in 2017  the attorney general reported that in                                                                    
the last  four years the  state only collected  $15 thousand                                                                    
in  punitive damages.  He furthered  that  the Alaska  Legal                                                                    
Services  Corporation  was established  in  1967  and was  a                                                                    
nonprofit charitable  501(c)(3), whose funding comes  from a                                                                    
variety of state, federal, and private sources.                                                                                 
                                                                                                                                
Representative  Claman  continued   that  the  Alaska  Legal                                                                    
Services Corporation  endeavored to  serve a  growing number                                                                    
of eligible  applicants. Since 1984, the  number of Alaskans                                                                    
who  qualified for  legal services  had  more than  doubled,                                                                    
from  41,000   to  over  100,000.  Currently,   the  state's                                                                    
contribution to ALSC  was only a fraction of what  it was 30                                                                    
years ago. The state appropriated  $1.2 million in 1984 with                                                                    
the appropriation  declining to  $450 thousand in  2016. The                                                                    
corporation  had  to turn  away  hundreds  of families  each                                                                    
year. The legislation attempted  to bridge the civil justice                                                                    
gap by  stabilizing ALSC funding  and providing  civil legal                                                                    
aid to all Alaskans, not just the few who can afford it.                                                                        
                                                                                                                                
Representative Claman relayed  from personal experience that                                                                    
his  former law  practice  had volunteered  for many  years,                                                                    
working  with the  ALSC  performing  intake interviews  with                                                                    
clients and received  a Bar Association award  for its work.                                                                    
He personally  observed that ALSC's demand  for services was                                                                    
much  higher than  they could  provide  and underscored  the                                                                    
importance of the bill.                                                                                                         
                                                                                                                                
2:40:13 PM                                                                                                                    
                                                                                                                                
LIZZIE KUBITZ, STAFF,  REPRESENTATIVE MATT CLAMAN, explained                                                                    
the Sectional Analysis (copy on file):                                                                                          
                                                                                                                                
     Section 1                                                                                                                  
     Amends  AS  37.05.590  relating   to  the  Civil  Legal                                                                    
     Services  Fund by  inserting  language that  authorizes                                                                    
     the legislature to appropriate up  to 25 percent of the                                                                    
     filing fees received by the  Alaska Court System during                                                                    
     the  previous  fiscal  year into  the  already  created                                                                    
     Civil Legal Services Fund.                                                                                                 
                                                                                                                                
2:42:36 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
2:42:55 PM                                                                                                                    
                                                                                                                                
NIKOLE  NELSON, EXECUTIVE  DIRECTOR,  ALASKA LEGAL  SERVICES                                                                    
CORPORATION, shared that the ALSC  was a non-profit law firm                                                                    
dedicated to ensuring access to  justice for all Alaskans in                                                                    
the  civil legal  system. The  corporation strove  to bridge                                                                    
Alaska's civil justice  gap for 50 years.  She explained why                                                                    
it was vital  to support civil legal aid.  She conveyed that                                                                    
both  the state  and  federal  constitutions guaranteed  due                                                                    
process and  equal protection under the  law. However, civil                                                                    
legal  aid   was  significantly   lacking  and   created  an                                                                    
"enormous justice gap" between  individuals who needed civil                                                                    
legal aid  and those that  could attain it. She  voiced that                                                                    
the mission  of ALSC was to  ensure fairness for all  in the                                                                    
civil justice  system. She  delineated that  the corporation                                                                    
provided legal  help in protecting  individuals' livelihood,                                                                    
health,  safety,  and   families.  The  corporation  offered                                                                    
direct  advice  and  representation  as  well  as  self-help                                                                    
information  for the  public. The  corporation maintained  a                                                                    
hotline  for advice  and  provided  community education  and                                                                    
clinics.  The  corporation had  11  regional  offices and  6                                                                    
medical  legal partnerships  that enabled  it to  expand its                                                                    
reach  statewide. The  offices  were  located in  Anchorage,                                                                    
Juneau,  Fairbanks,   Kotzebue,  Ketchikan,   Nome,  Bethel,                                                                    
Dillingham,  Kenai, Palmer,  Utqiagvik,  Sitka, and  Kodiak.                                                                  
Each  office  was  staffed  locally and  relied  on  a  vast                                                                    
network  of pro  bono volunteers  due to  limited resources.                                                                    
She  described the  type  of clients  the  ALSC served.  She                                                                    
elucidated that  women who suffered  spousal abuse  often in                                                                    
front of their children, or  a grandfather who supported his                                                                    
grandchildren and  was afraid  of losing his  home due  to a                                                                    
predatory lender, or  a commercial fisher who  spent her all                                                                    
money on  boat repair  and the  boat subsequently  caught on                                                                    
fire,  or  a  disabled   veteran  denied  federal  Veteran's                                                                    
Affairs  benefits  were  all examples  of  individuals  that                                                                    
asked ALSC for help on a  daily basis. She emphasized that a                                                                    
civil  legal  solution  existed for  all  the  problems  she                                                                    
described and the constitutional  right for a criminal court                                                                    
appointed attorney was not extended to civil cases.                                                                             
                                                                                                                                
Ms. Nelson continued that the  ALSC was at the "forefront of                                                                    
fighting the epidemic of domestic  violence that plagued the                                                                    
state, serving over 500 victims  per year." In addition, the                                                                    
corporation   protected   over   1000  seniors   and   their                                                                    
caregivers and  assisted with wills, probates,  and power of                                                                    
attorney.  The corporation  helped over 500 hundred veterans                                                                    
and 300  disabled individuals gain access  to healthcare and                                                                    
benefits and  350 families fend off  foreclosure and illegal                                                                    
evictions. The  ALSC made civil  legal services  a "reality"                                                                    
for  rural Alaskans,  which represented  over 40  percent of                                                                    
its clients  in 182  different communities.  The corporation                                                                    
assisted over  3000 families and 7000  individuals with more                                                                    
than 43 thousand visits to  its website and 2000 individuals                                                                    
attended its  clinics and self-help  workshops. She  noted a                                                                    
2012  study  by the  Alaska  Mental  Health Trust  Authority                                                                    
(AMHTA), which found that for  every dollar invested in ALSC                                                                    
it returned  $5 to  the state. She  relayed that  ALSC saved                                                                    
the state $600 thousand  in avoided emergency shelter costs,                                                                    
$2.6  million for  domestic violence  victims' medical  care                                                                    
and counseling costs and helped  disperse federal funds into                                                                    
the economy by assisting  those that earned federal benefits                                                                    
receive them.                                                                                                                   
                                                                                                                                
2:48:31 PM                                                                                                                    
                                                                                                                                
Ms. Nelson  furthered her testimony.  She relayed  that ALSC                                                                    
turned away  hundreds of families last  year with compelling                                                                    
needs at  the rate of one  for every one family  served. She                                                                    
emphasized  that  the rejected  cases  had  merit and  civil                                                                    
recourse  was  available  but  ALSC  lacked  the  staff  and                                                                    
resources  to  assist  those  in  need.  She  stressed  that                                                                    
funding  had  not  kept  pace with  the  growing  need.  The                                                                    
corporation was  "incredibly cost efficient" and  80 percent                                                                    
of cases  were resolved out  of court with the  average case                                                                    
costing $600. She  reported that the starting  salary for an                                                                    
Anchorage   attorney  was   $44  thousand   per  year.   The                                                                    
corporation leveraged the resources  of donated office space                                                                    
and   over  $500   thousand  in   volunteer  services.   She                                                                    
emphasized that  HB 106  would help  bridge the  justice gap                                                                    
and ensure that the principle  of "justice for all" remained                                                                    
a priority.                                                                                                                     
                                                                                                                                
Senator  Olson  was  impressed  by ALSC  and  the  pro  bono                                                                    
services  it  received.  He  asked   how  many  law  offices                                                                    
provided pro bono services in  the state. Ms. Nelson replied                                                                    
that the corporation had a  pool of approximately 850 active                                                                    
pro bono  attorneys each year. Senator  Olson inquired about                                                                    
the  number  of attorneys  ALSC  had  on staff.  Ms.  Nelson                                                                    
responded that ALSC had 35 attorneys.                                                                                           
                                                                                                                                
Senator Micciche  voiced that sometimes  the state  was sued                                                                    
by  ALSC  on behalf  of  clients.  He  asked how  often  the                                                                    
corporation  sued  the  state  and  to  discuss  under  what                                                                    
circumstances  ALSC  was  prohibited  from  practicing.  Ms.                                                                    
Nelson  answered  that "on  occasion"  the  ALSC took  cases                                                                    
where the  state was the  opposing party. She  reported that                                                                    
the  number of  affirmative lawsuits  against the  state was                                                                    
less than 10  out of the 3.3 thousand cases  each year. Most                                                                    
often  the  corporation  was   helping  individuals  in  the                                                                    
"defensive  position." She  added that  the corporation  was                                                                    
prohibited  via federal  regulation from  providing services                                                                    
for controversial matters like  abortion related services or                                                                    
gerrymandering  cases   etc.  In  addition.  the   ALSC  was                                                                    
prohibited from competing  with the private bar  and did not                                                                    
take  on fee  generating  services such  as personal  injury                                                                    
cases.   She  offered   to  provide   a  complete   list  of                                                                    
restrictions.                                                                                                                   
                                                                                                                                
2:54:01 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop appreciated  Ms.  Nelson's testimony  and                                                                    
was supportive of the service the ALSC provided.                                                                                
                                                                                                                                
Senator  Micciche noted  that the  list of  restrictions was                                                                    
included  in  the member's  bill  packets  [titled "  Alaska                                                                    
Legal Services  Corporation Restrictions on Cases]  (copy on                                                                    
file).                                                                                                                          
                                                                                                                                
2:54:34 PM                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon OPENED public testimony.                                                                                     
                                                                                                                                
EMILIE BEASLEY,  SELF, MATSU (via teleconference),  spoke in                                                                    
support of the  bill. She reported that she was  73 years of                                                                    
age,  lived in  the  state  since 1977,  and  served in  the                                                                    
Marine  Corps. She  explained that  ALSC  helped her  remain                                                                    
safe in  her home  from a family  member who  threatened her                                                                    
life. She appreciated the respectful  attitude of ALSC staff                                                                    
and the  representation in court.  She urged support  of the                                                                    
bill to help protect senior citizens.                                                                                           
                                                                                                                                
2:55:32 PM                                                                                                                    
                                                                                                                                
Vice-Chair  Bishop thanked  Ms. Beasley  for her  service to                                                                    
the country.                                                                                                                    
                                                                                                                                
Co-Chair MacKinnon CLOSED public testimony.                                                                                     
                                                                                                                                
2:56:00 PM                                                                                                                    
AT EASE                                                                                                                         
                                                                                                                                
2:56:33 PM                                                                                                                    
RECONVENED                                                                                                                      
                                                                                                                                
Co-Chair  MacKinnon indicated  that  a new  fiscal note  was                                                                    
requested from  the Office of  Management and  Budget (OMB).                                                                    
She announced that amendments were due the following day by                                                                     
5pm and that amendments for HB 219 were due the following                                                                       
day by noon.                                                                                                                    
                                                                                                                                
HB 106 was HEARD and HELD in committee for further                                                                              
consideration.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
HB106 Additional Document-HFIN Questions Memo 2.22.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Sectional Analysis ver D 2.22.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Additional Document-SJUD Questions Memo 2.22.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Sponsor Statement 2.22.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Supporting Document-Letters of Support 2.22.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Updated Sectional Analysis ver D 4.23.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106
HB106 Updated Sponsor Statement 4.23.18.pdf SFIN 4/23/2018 1:30:00 PM
HB 106