HOUSE BILL NO. 63 "An Act extending the termination date of the Board of Governors of the Alaska Bar Association; and providing for an effective date." 8:49:47 AM REPRESENTATIVE MIKE HAWKER presented the sunset bill. He noted that the bill could be found on the Division of Legislative Budget and Audit's (LB&A) website. The proposed legislation extended the Alaska Bar Association's sunset date from 2013 to 2021 in accordance with recommendations made by the state's legislative auditor. The auditor conducted an evaluation of the Board of Governors using criteria under AS 44.66.050(c), which was summarized in the report included in committee members' files. Representative Hawker continued that all previous findings from prior audits were resolved. The remaining issue stood as a matter of judgment between the legal and legislative profession regarding the mandatory continuing education for attorneys. The auditor recommended that the Alaska Supreme Court increase the mandatory education hours for attorneys. 8:51:52 AM Representative Gara pointed out that the Alaska Bar Association continued charging attorneys money despite an inactive status. If the fee was not paid, an attorney must take the bar exam a second time to practice law. He wished to see an amendment preventing the practice. Co-Chair Stoltze stated that he did not wish to regulate the bar. Representative Hawker referred to "Shakespeare's Council." Co-Chair Stoltze suggested a subcommittee process for the proposed amendment. Representative Gara withdrew his request. 8:55:01 AM KRIS, CURTIS, LEGISLATIVE BUDGET AND AUDIT, explained the recommendation in prior sunsets that the board support an increase to the mandatory continuing legal education requirement. Current mandatory requirements were three credits per year. She stated the board's voluntary requirement of an additional nine credits, with 60 percent of members meeting the requirement. She pointed out that the board conducted a survey of their members to determine whether they supported an increase; over 90 percent did not. She stated that LB&A made the recommendation again. STEVE VAN GOOR, ALASKA BAR ASSOCIATION, ANCHORAGE (via teleconference), stated that he was available to answer questions. Representative Gara asked about the fairness of the Alaska Bar Association's fee for inactive attorneys. Mr. Van Goor replied that an inactive status with the bar association was an option for members choosing not to practice law. He stated that inactive members were charged a fee to retain the structure, licensing and discipline functions of the association. An inactive member supported the infrastructure and ability to return to practice. A failure to pay inactive dues did not require the member to retake the bar exam, but instead subjected the member to administrative suspension. The suspension could be cured by paying the past due fees and a penalty. Co-Chair Stoltze compared the fee to that of an automobile registration fee. Representative Gara suggested that inactive members must pay for infrastructure supporting active members. Mr. Van Goor replied that the Alaska Bar Association supported the public service functions. Inactive members were not charged the same amount as active members, but they did have the ability to practice law again. Representative Gara disagreed with the policy. 8:59:40 AM Representative Holmes joked that Representative Gara's fees helped to lower her own as an active member of the Alaska Bar Association. 9:00:12 AM HANNA SEBOLD, ALASKA BAR ASSOCIATION, was available for questions. Representative Gara expressed his opinion that the practice of collecting fees from inactive members was not just and reasonable. He asked that Ms. Sebold request that the Alaska Bar Association change the rule. Ms. Sebold answered that she would bring the matter to the board. Representative Holmes discussed current mandatory hours for continued education. She stated that three hours of mandatory ethics and an additional nine hours of recommended hours of "other" continuing education credits. She asked if the association had a position on the issue of changing the policy. Ms. Sebold deferred the question to Mr. Van Goor. Mr. Van Goor replied that a rule proposal had been made to the Alaska Supreme Court to clarify the mandatory continuing education policy. He explained that the board suggested a rule change while conducting a survey of its membership and comments were collected before the rule was submitted to the court. The court would then schedule an administrative rules conference, which the association was invited to attend. He suggested to LB&A that the audit was the time to raise the concerns expressed in the House State Affairs Committee. He stated that the court had the final call about the number of hours required for members of the bar. The court had the ability to increase the number of hours and was in the decision making process. 9:04:34 AM Representative Holmes asked for clarification on the recommendation regarding an increase in the mandatory number of continuing education hours. She asked if the association had presented a recommendation about the requirement. Mr. Van Goor answered that the proposed rule clarified portions of the mandatory continuing education requirements without a specific recommendation for increasing the hours. He hoped to discuss the audit's concerns at the rules conference. Co-Chair Stoltze thanked Mr. Van Goor for clarifying the diminished relevance of the people's body in the process. 9:05:57 AM Representative Munoz asked the number of active and inactive bar members in Alaska. Ms. Sebold replied approximately 4100 total members, with 2600 in active status. 9:06:32 AM TOM OBERMEYER, ANCHORAGE (via teleconference), called attention to the bar exam. He claimed that the Alaska Bar Association had the ability to limit applicants who pass the bar exam. He noted that Missouri implemented a state practice portion for the exam. He stated that Alaska had less than 100 applicants. He explained that he had paid and studied for the bar exam for 29 years. He spoke to the debt incurred in law school. He believed that the exam passage rate was arbitrary. He disagreed with the audit's recommendation of an 8 year extension. 9:11:57 AM Co-Chair Stoltze CLOSED public testimony. Representative Hawker understood the dilemma regarding the separation of powers between the legislative, legal and executive branches of government. He requested consideration for a change in statute or letter of intent accompanying the bill to provide the great impact of the legislature's concern. He pointed out the committee's tradition of separating policy calls from reauthorizations. Co-Chair Stoltze stated that the audit recommendation was also important. HB 63 was HEARD and HELD in committee for further consideration. 9:15:58 AM AT EASE 9:19:32 AM RECONVENED