Legislature(2017 - 2018)HOUSE FINANCE 519
03/06/2017 01:30 PM House FINANCE
Note: the audio ![]()
and video ![]()
recordings are distinct records and are obtained from different sources. As such there may be key differences between the two. The audio recordings are captured by our records offices as the official record of the meeting and will have more accurate timestamps. Use the icons to switch between them.
| Audio | Topic |
|---|---|
| Start | |
| HB106 | |
| HB56 | |
| HB81 | |
| HB49 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 49 | TELECONFERENCED | |
| + | HB 56 | TELECONFERENCED | |
| + | HB 81 | TELECONFERENCED | |
| + | HB 106 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 106
"An Act allowing appropriations to the civil legal
services fund from court filing fees."
1:34:20 PM
REPRESENTATIVE ZACH FANSLER, SPONSOR, introduced himself
and provided a description of the bill from the sponsor
statement (copy on file).:
This bill will safeguard Alaskans' access to the civil
justice system by creating a stable and sustainable
mechanism for funding the Alaska Legal Services
Corporation, protecting those who cannot afford to
hire an attorney of their own. It allows the
Legislature to appropriate up to 25 percent of filing
fees paid to the Alaska Court System during the
previous fiscal year into the already existing Civil
Legal Services Fund.
The Alaska Legal Services Corporation-established in
1967-is a nonprofit charitable 501(c)(3), whose
funding comes from a variety of state, federal, and
private sources.
Alaska Legal Services Corporation endeavors to serve a
growing number of eligible applicants. Since 1984, the
number of Alaskans who qualified for legal services
has more than doubled, from 41,000 to over 100,000.
Yet currently, the state's contribution to The Alaska
Legal Services Corporation is only a fraction of what
it was 30 years ago. House Bill 106 aims to stabilize
The Alaska Legal Services Corporation funding and help
ensure that civil legal aid is available to all
Alaskans, not just the few who can afford it.
The Need
In the past 30 years, the number of Alaskans eligible
for legal services-including Alaska Veterans-has more
than doubled, from 41,000 to more than 100,000.
However, state funding for Legal Services is a small
fraction of what it was decades ago.
Legal Services does significant work on behalf of
Alaska Veterans, protects Alaskans from domestic
violence, and also contributes to efforts to lower
recidivism rates through helping people bring
stability to their lives.
Access to civil justice should not be just for people
who can afford an attorney.
1:37:11 PM
Co-Chair Foster noted that Representative Wilson and
Representative Guttenberg had joined the meeting. He listed
individuals who were on hand to answer questions.
Co-Chair Seaton referred to military members served by the
agency. He asked whether the military members had civil
attorneys.
Representative Fansler could not speak to the legal
services provided by the military, but understood that many
of the cases handled by civil legal services involved
veterans.
Co-Chair Seaton requested differentiation between active
military and veterans, when discussing the program.
1:39:35 PM
NIKOLE NELSON, EXECUTIVE DIRECTOR, ALASKA LEGAL SERVICES,
shared that the agency represented veterans, as opposed to
active military members. She said that civil legal
assistance were provided military families. She expounded
that a military family could have a civil legal issue that
did not qualify for representation through the military,
but that the agency was not duplicating services.
Representative Wilson asked for a breakdown of federal and
private donations for services in the past year.
Representative Fansler deferred the question to the agency.
Ms. Nelson relayed that the agency had a wide range of
funding sources. She elaborated that the overall budget was
approximately $5 million, of which $450,000 was from a
state appropriation. She stated that $1.2 million was
received from the Federal Legal Services Corporation, and
the funding balance after that was received from a variety
of sources: private foundation grants, individual
donations, and competitive grants and contracts.
Representative Wilson asked whether there were legal
service benefits available for veterans.
Ms. Nelson answered in the affirmative. She furthered that
although the VA did provide services, legal representation
was not among them. She asserted that if a veteran had been
denied benefits, it was helpful to have legal
representation.
1:42:27 PM
Representative Grenn asked whether current funding levels
had resulted in applicants being denied services.
Ms. Nelson answered in the affirmative; they had turned
away over 850 cases in the past year because the agency did
not have the resources to serve them. She elaborated that
the cases that were turned away involved victims of
domestic violence, and exploited elderly and veterans, and
that all the cases were merited.
Representative Grenn asked about a normal course of action
for an individual who was denied service.
Ms. Nelson replied that other services available were
referred, but for most people the service was the last
resort, and without assistance the client would have to
self-represent.
Co-Chair Foster noted Representative Pruitt had joined the
meeting.
1:44:06 PM
Representative Kawasaki asked how the agency prioritized
the applicants.
Ms. Nelson responded that the cases were prioritized based
on the vulnerability of clients, the need (legally), and
staff availability. She said that cases were triaged in
order for the assessment to be made of the most vulnerable
would receive services first.
Representative Kawasaki asked what the poverty level was as
associated with the term "indigent" as defined in the bill.
Ms. Nelson replied that the services were generally limited
to those at 125 percent of the federal poverty guidelines,
as adjusted for Alaska. She added that there were several
specific funding sources that allowed for services for
those who did not meet the criteria.
1:45:41 PM
Representative Guttenberg assumed that the clientele that
the Alaska Legal Services Corporation (ALSC) catered to had
a higher percentage of being denied services from private
sector and government agencies.
Ms. Nelson agreed. She said that the agency had an 86
percent success rate in the cases it took on, and 80
percent of its cases settled out of court. She said that
simply letting the other side know that the validity of
their legal action was being contested was a huge help to
the more vulnerable clientele that had not had successful
service elsewhere.
Representative Guttenberg asked whether ALSC took a cut
from the money awarded to the client by the court.
Ms. Nelson clarified the agency did not take cases where
there was a large fee award or settlement - those cases
would be taken on by a private attorney.
1:48:34 PM
Representative Pruitt noted that filing fees went straight
to the General Fund.
Representative Fansler answered in the affirmative.
Representative Pruitt asked whether the court should be
decremented the difference if the original appropriation
and the $634,000, because they were bringing in fees with
the intent of applying them toward the services they
provide.
MARY SCHLOSSER, STAFF, REPRESENTATIVE ZACH FANSLER,
answered that the fund had originally been established in
2007 using fees from punitive damages, which were not as
stable as court fees. She detailed the legislation changed
it to more stable funding. She added that zero to 25
percent of the court fees could be appropriated to the
court, at the legislature's discretion. She said that the
bill would offer secondary funding when the financial
climate was more stable.
Representative Pruitt understood that the punitive damages
funds would be replaced by the filing fees, he asked where
the punitive damages funds would go.
Ms. Schlosser replied that due to the instability of
punitive awards in the past ten years, the court fees would
be used in addition punitive awards. She detailed that
$90,000 had brought forward in the past ten years, $20,000
in the past 4 years.
1:52:25 PM
Representative Wilson understood that the $450,000 that was
appropriated to the program, had not been based on the
punitive awards or court filing fees. She wondered what
percentage of the program's funding had to be authorized by
the legislature.
Representative Fansler replied that punitive damages were
currently in place, and the majority of the $450,000 came
from a direct legislative appropriation. He clarified that
the legislation would provide a mechanism that would allow
for a more stable funding source once the state's economy
recovered.
Representative Wilson assumed if the bill were to pass the
court would consider their fees when planning their overall
yearly budget.
Representative Fansler agreed. He said that it would yearly
be up to the legislature to determine what percentage of
the fees would be used. He believed that the bill would
allow for a multi-faceted approach that gave numerous
options for a secure and steady funding stream.
1:55:09 PM
Co-Chair Foster OPENED and CLOSED public testimony. He
informed committee members that amendments to the bill were
due by 5pm on Wednesday, March 8, 2017.
Co-Chair Seaton pointed out to the committee that the fees
that were collected by ALSC went into the general fund and
were subject to appropriation by the legislature.
HB 106 was HEARD and HELD in committee for further
consideration.