03/11/1993 01:30 PM House FIN

  HOUSE BILL 151                                                               
                                                                               
       "An Act  relating to  payment by  indigent persons  for                 
       legal services and related costs;  and providing for an                 
       effective date."                                                        
                                                                               
  Co-Chair  MacLean referenced  work  draft #8-LS0618\E  dated                 
  3/10/93  CSHB  151 (FIN).    She explained  the  changes the                 
  committee substitute made to HB 151.                                         
                                                                               
  Representative  Parnell asked the meaning of "cost" on  Page                 
  1, Line 9.  He thought this would narrow the amount of money                 
  which the State receives.  Co-Chair MacLean noted her intent                 
  was  to  have  the  costs  and attorney  fees  incorporated.                 
  Representative    Parnell  recommended  adding  "costs   and                 
  attorney's fees".                                                            
                                                                               
  CHRIS CHRISTENSEN, ATTORNEY, ALASKA COURT SYSTEM,  explained                 
  that the Alaska Exemption's Act lifts items which a creditor                 
  such as the State of  Alaska can not seize when it  proceeds                 
  against a debtor.   If  the State is  attempting to  recover                 
  attorney's fees from  someone who was indigent  at one time,                 
  the first $62 thousand  dollars of equity in their  home can                 
  not be touched.   The first $35 hundred dollars  of personal                 
  property,  the  first $11  hundred  dollars of  jewelry, the                 
  first $32 hundred  dollars of tools,  the first $11  hundred                 
  dollars  of pets,  the first  $35 hundred  dollars of  motor                 
  vehicles and the first $16 hundred dollars worth of cash can                 
  not be touched.                                                              
                                                                               
  Co-Chair MacLean  asked  if permanent  fund  dividends  were                 
  allowable exemptions.   Mr. Christensen stated that  the PFD                 
                                                                               
                                9                                              
                                                                               
                                                                               
  is  protected  by the  Alaska  Exemption's  Act if  it  is a                 
  private creditor.  If the creditor is a State  agency and it                 
  is a debt owed to the State, the Alaska's Exemption Act does                 
  not apply.                                                                   
                                                                               
  The Supreme Court with Civil Rule  39.5 has added a "special                 
  hardship exemption" which is an  exemption which is mandated                 
  by the U.S. Supreme Court decision from 1974.  The Court has                 
  indicated that a "formerly indigent  persons property can be                 
  taken"  as long  as it  can be  afford to be  repaid without                 
  hardship.                                                                    
                                                                               
  Co-Chair Larson MOVED to adopt the work draft dated 3/10/93.                 
  Representative  Martin  MOVED to delete  on Page 1, Line  9,                 
  and use the language of the original bill.                                   
                                                                               
  Co-Chair Larson assigned  HB 151 to subcommittee  Chaired by                 
  Representative    Hanley  and  with  members  Representative                 
  Parnell,   Representative      MacLean  and   Representative                 
  Hoffman.                                                                     
                                                                               
  HB 151 was HELD in Committee for further discussion.