Legislature(2025 - 2026)GRUENBERG 120
01/31/2025 01:30 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB48 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 48 | TELECONFERENCED | |
HB 48-CIVIL LEGAL SERVICES FUND
1:44:05 PM
CHAIR GRAY announced that the first only order of business would
be HOUSE BILL NO. 48, "An Act relating to appropriations to the
civil legal services fund."
1:44:43 PM
REPRESENTATIVE SARA HANNAN, Alaska State Legislature, as prime
sponsor, presented HB 48. She paraphrased from the sponsor
statement [included in the committee packet], which read as
follows [original punctuation provided]:
HB 48 safeguards low-income Alaskans' access to the
civil justice system by increasing the funding
available for organizations that provide civil legal
services to Alaska's most vulnerable populations.
HB 48 amends the statute creating the Civil Legal
Services Fund (AS 37.05.590) so that up to 25 percent
of court system filing fees can be appropriated by the
Legislature to the existing Alaska Civil Legal
Services Fund each year to provide access to civil
legal aid for low-income Alaskans. Legislation
allowing the legislature to appropriate filing fees
for civil legal aid was passed in 2018. It was
originally set at 25 percent but lowered to 10 percent
with the intention of reassessing the need for a
higher appropriation later; those contributions are
now necessary to support those in need.
Alaska Legal Services Corporation (ALSC) the only
civil legal services organization for low-income
people in Alaska was established in 1967. ALSC
assists Alaskans with a range of civil matters
including financial abuse, housing, child support,
government benefits, and domestic violence protective
orders. ALSC is not a state agency; it is a nonprofit
charitable 501(c)(3), whose funding comes from a
variety of state, federal, and private sources. ALSC
strives to serve a growing number of low-income
clients. Unfortunately, due to the growing demand and
declining support, ALSC has had to turn away hundreds
of individuals and families.
HB 48 aims to stabilize funding for ALSC and help
ensure that civil legal aid is available to all
Alaskans, not just those who can afford it. I urge you
to join me in supporting HB 48.
1:47:43 PM
HUNTER MEACHUM, Staff, Representative Sara Hannan, Alaska
State Legislature, on behalf of Representative Hannan,
prime sponsor, presented the sectional analysis for HB 48
[included in the committee packet], which read as follows
[original punctuation provided]:
Section 1 amends AS 37.05.590. to allow for up to 25
percent of court system filing fees to be appropriated by
the Legislature to the existing Alaska Civil Legal
Services Fund each year to provide access to civil legal
aid for low-income Alaskans.
1:48:22 PM
REPRESENTATIVE MINA asked for the estimated amount of funds
the bill would raise by appropriating 25 percent of Alaska
Court System (ACS) filing fees to the Alaska Civil Legal
Services Fund ("the fund").
REPRESENTATIVE HANNAN called the committee's attention the
Department of Commerce, Community & Economic Development's
(DCCED) fiscal note, which reflected the additional 15
percent of court filing fees based on fiscal year 2024 (FY
24) revenues projected through FY 31.
1:49:46 PM
REPRESENTATIVE VANCE requested a breakdown of the type of
cases handled by Alaska Legal Services Corporation (ALSC).
MS. MEACHUM offered to follow up with the requested
information.
REPRESENTATIVE KOPP expressed his appreciation to the bill
sponsor for carrying this bill and referenced the ALSC's
work on irrevocable income trusts for state assisted
living.
1:52:14 PM
REPRESENTATIVE UNDERWOOD asked how the bill relates to the
Wielechowski v. State ruling.
REPRESENTATIVE HANNAN said in the Wielechowski decision,
the court concluded that all laws are subject to annual
appropriation, and that the legislature has the authority
to set the amount of various appropriations.
1:53:53 PM
REPRESENTATIVE VANCE referred to page 1, lines 9-10 of the
bill, and sought to verify that only one organization in
Alaska provides civil legal services to low-income
individuals.
REPRESENTATIVE HANNAN said that is her understanding.
1:54:18 PM
REPRESENTATIVE UNDERWOOD asked, if the current cap on court
system filing fees is 10 percent, whether the legislature
could appropriate more than 10 percent to the fund.
CHAIR GRAY shared his understanding that all court fees go
to the general fund (GF), so this appropriation would come
from the GF. He deferred to Ms. Meade for confirmation.
1:55:44 PM
NANCY MEADE, General Counsel, Alaska Court System (ACS),
confirmed that all the court's filing fees go to the GF.
She reiterated that the bill would authorize a transfer
from the GF to the Civil Legal Services Fund for
organizations that provide legal services to low-income
individuals.
REPRESENTATIVE UNDERWOOD restated her question, asking
whether the legislature could appropriate more than 10
percent to the fund without passage of HB 48.
MS. MEADE shared her understanding that the legislature may
choose to appropriate any amount.
1:57:43 PM
CHAIR GRAY opened invited testimony.
1:57:57 PM
MAGGIE HUMM, Executive Director, Alaska Legal Services
Corporation (ALSC), gave invited testimony during the
hearing on HB 48. She described the work done by ALSC, a
nonprofit law firm that provides comprehensive and free
legal aid to low-income Alaskans. She discussed the crisis
in the civil legal justice system due to the gap between
those who can access legal help and those who can't. She
described the consequences of not having legal help for
families and shared several examples of ALSC's case work.
She explained that ALSC is innovating to close the justice
gap by setting up a training and resource center for
community justice workers to provide targeted, legal
assistance. In FY 24, ALSC provided direct representation
in over 6,200 cases for Alaskans in 204 communities,
serving the most vulnerable populations, such as victims of
domestic violence and sexual assault, seniors, and
individuals with disabilities. The organization is
prohibited from taking on various types of cases by federal
law, including criminal matters, class actions, cases on
welfare reform, and representing prisoners, for example.
She reported that ALSC's demographic continues to grow each
year and funding has not kept pace, adding that last year,
ALSC had to turn away one family for every one that it
helped. In FY 25, the state appropriation totaled $696,400
to serve a target population of 98,000. She gave context
as to the history of AS 37.05.590, which was accomplished
with bipartisan support from the legislature; however,
because the availability of funds is dependent on court
system filing fees from punitive damages to the state, the
amount available from the fund can vary. In FY 24,
$296,400 was appropriated. She stated that increasing the
10 percent of court system filing fees to 25 percent would
result in an allocation of $741,000 for FY 25, and
estimated that for every additional $100,000, 182 Alaskans
could be helped. She explained that ALSC pays it attorneys
significantly less than a private or state attorneys and
leverages its resources with donated office space and
support from local communities and volunteer programs. In
closing, she said there is an extroardinary need for
critical civil legal services that cannot be met solely by
ALSC. She said HB 48 would help promote equal access to
the justice system and assist more vulnerable Alaskans.
2:08:46 PM
REPRESENTATIVE VANCE asked for a breakdown of the types of
cases handled by ALSC.
MS. HUMM offered to follow up with the requested
information.
REPRESENTATIVE VANCE recalled that the majority of cases
are landlord tenant issues and asked whether many low-
income landlords are represented.
MS. HUMM clarified that the majority of cases are not
landlord tenant cases. She confirmed that low-income
landlords can be represented and shared several examples.
She added that landlords can call into the landlord tenant
hotline.
REPRESENTATIVE VANCE asked whether ALSC would be able to
represent both the landlord and tenant if they had separate
attorneys.
MS. HUMM said because ALSC is one law firm, representing
both sides in one case would be a conflict of interest.
2:13:11 PM
REPRESENTATIVE MINA asked whether there has been an
increase in the number of Alaskans that fall under 125
percent of the federal poverty level.
MS. HUMM shared her understanding that the number is
approximately 98,000 eligible individuals up from 40,000 in
the 1980s.
2:14:54 PM
REPRESENTATIVE KOPP asked how far 10 percent of court
system filing fess carry the organization through the
fiscal year.
MS. HUMM answered roughly half the year. In response to a
follow up question, she said that to provide assistance,
many funding sources are stretched and leveraged to fill
the gaps.
REPRESENTATIVE KOPP sought to confirm that ALSC is a
nonprofit and asked how many positions are grant funded.
MS. HUMM said there are currently 58 staff members and
essentially all are funded through some sort of grant.
REPRESENTATIVE KOPP commented on the benefits of
volunteerism and encouraged passage of the bill.
2:18:52 PM
CHAIR GRAY asked what percentage of ALSC's budget is funded
by the 10 percent of court system filing fees.
MS. HUMM said the annual budget is 10.3 million and the 10
percent of filing fees totaled $296,400 in FY 24.
REPRESENTATIVE UNDERWOOD asked whether passage of HB 48 is
necessary to appropriate more than 10 percent of the fund.
2:22:48 PM
DANIEL WAYNE, Attorney, Legislative Legal Services,
Legislative Affairs Agency (LAA), shared his understanding
that the statute would need to be amended to appropriate
more than 10 percent.
2:26:27 PM
The committee took a brief at-ease at 2:26 p.m.
2:27:16 PM
REPRESENTATIVE VANCE asked Ms. Moller to explain the DCCED
fiscal note, specifically the impact to federal receipts
under the "Change in Revenues" column.
2:28:02 PM
SANDRA MOLLER, Director, Division of Community & Regional
Affairs, Department of Commerce, Community & Economic
Development (DCCED), acknowledged an error in the fiscal
note and explained that the fiscal note should list Alaska
Legal Services Corporation instead of federal receipts.
REPRESENTATIVE VANCE asked who is requesting the $468,900.
MS. MOLLER explained that if the bill were to pass,
$468,900 would be added to the $312,600 in the governor's
budget to reflect the increase from 10 to 25 percent of
court filing fees.
CHAIR GRAY sought further clarification on the fiscal note.
REPRESENTATIVE KOPP shared his understanding that 781,500
reflects 25 percent of court filing fees.
CHAIR GRAY asked how often one party is turned away due to
a conflict of interest because ALSC is already representing
the other side.
MS. HUMM said it happens less often than turning folks away
due to a lack of resources. Anecdotally, she said it
typically happens in family law matters.
REPRESENTATIVE GRAY asked whether ALSC's $10.3 million
budget is primarily federal money.
MS. HUMM said ALSC has a variety of funding sources:
federal funding, state and local grants, contracts with
Tribal partners, private foundation funding, individual
donors, and fundraising campaigns.
2:35:23 PM
MS. MOLLER, in response to a request from Chair Gray,
walked the committee through the fiscal note again,
reiterating that $468,900 would be added to the $312,600
that's already in the governor's budget for a total of
781,500, which represents 25 percent of the court filing
fees.
2:36:20 PM
REPRESENTATIVE MINA recalled that Ms. Humm had stated that
182 more Alaskans could be helped for every additional
$100,000. She asked whether that's generated by an
increase in salaries, hours, or training.
MS. MOLLER said it's a combination of everything mentioned.
REPRESENTATIVE MINA asked how cases are prioritized by
ALSC.
MS. MOLLER said initial screenings are provided to ensure
that ALSC can take on the case type, followed by an in-
depth financial screening for income, assets, and other
eligibility criteria. At that point, cases are sent to
local offices where caseload and local resources are
considered.
2:40:27 PM
REPRESENTATIVE MINA referred to lines 12-13 of the bill and
asked whether there had been any consideration to increase
the percentage of poverty guidelines from 125 to 130
percent to make it on par with Supplemental Nutrition
Assistance Program (SNAP) eligibility or other public
benefits.
REPRESENTATIVE HANNAN said she had not contemplated that.
She pointed out that ALSC cannot meet the current demand of
eligible Alaskans, so expanding eligibility would only
create a bigger gap of underserved but eligible
individuals.
MS. MOLLER noted that ALSC has some flexibility to go up to
200 percent of the federal poverty guidelines. In
addition, some funding sources allow for over 200 percent
for seniors.
2:43:44 PM
REPRESENTATIVE MINA asked about the organization's
accounting processes.
MS. HUMM assured Representative Mina that the billing
department is accustomed to carrying out a detailed level
of accounting.
CHAIR GRAY sought closing comments from the bill sponsor.
2:49:26 PM
REPRESENTATIVE HANNAN reminded the committee that the ALSC
has a variety of funding sources. Its work serves to
increase state efficiency by reducing demand on the court
system. The goal is to help Alaskans in need prior to
entering the court system; resolve real problems; and
connect people with resources. She referenced a letter
submitted by Cook Inlet Housing Authority [included in the
committee packet], which offers a helpful explanation as to
why they advocate for this funding increase and how it
would help.
2:52:29 PM
CHAIR GRAY announced that HB 48 would be held over.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 48 Sponsor Statement version A.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 Sectional Analysis version A.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| Alaska Legal Services Corp. Overview Fact Sheet 1.23.25.pdf |
HJUD 1/31/2025 1:30:00 PM |
|
| Alaska Legal Services Corp. HB 48 Fact Sheet 1.23.25.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| Alaska Legal Services Corp. Community Justice Workers Fact Sheet 1.23.25.pdf |
HJUD 1/31/2025 1:30:00 PM |
|
| Alaska Legal Services Corp. Community Impact Fact Sheet 1.23.25.pdf |
HJUD 1/31/2025 1:30:00 PM |
|
| HB 48 Letter of Support - ACT.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 - Letter of Support 1.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 Letter of support - STAR.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 Letter of Support - Cook Inlet Housing.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 Letter of Support - AFN.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |
| HB 48 Fiscal Note- DCCED.pdf |
HJUD 1/31/2025 1:30:00 PM |
HB 48 |