Legislature(2015 - 2016)HOUSE FINANCE 519
04/13/2015 01:30 PM House FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| HB190 | |
| HB123 | |
| HB154 | |
| HB105 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | HB 190 | TELECONFERENCED | |
| + | HB 105 | TELECONFERENCED | |
| + | HB 154 | TELECONFERENCED | |
| += | HB 123 | TELECONFERENCED | |
| + | SB 26 | TELECONFERENCED | |
| + | TELECONFERENCED |
HOUSE BILL NO. 154
"An Act allowing appropriations to the civil legal
services fund from court filing fees."
2:29:38 PM
REPRESENTATIVE BRYCE EDGMON, SPONSOR, explained that the
bill created a stable funding mechanism for the Alaska
Legal Services Corporation (ALSC). He stated that the bill
allowed up to 25 percent of the filing fees paid to the
Alaska Court System from the previous fiscal year to be
appropriated into the existing Civil Legal Services Fund.
The corporation provided legal services to a growing number
eligible applicants; the number doubled from 41,000 to over
100,000 within 30 years. The funding sources for ALSC was
comprised of state funds, local funds, federal funds, from
private donations, and native organizations. He noted that
the bill established a stable source of state funding.
Representative Pruitt wondered how much money would be
appropriated to the fund.
Representative Edgmon replied that in the past year, court
filing fees amounted to $2.2 million and 25 percent equated
to $563 thousand. He noted that the current year's budget
for the corporation was cut to $450 thousand.
Representative Wilson clarified that the legislation did
not appropriate money it only authorized the appropriation
into the fund.
Representative Edgmon replied in the affirmative. He
offered that HB 154 created the receipt authority.
Vice-Chair Saddler asked how often court filing fees were
adjusted or changed.
NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM, replied
that the court system had not increased its filing fees in
the past 10 to 12 years; the court system was in the
process of implementing much higher fees effective July 1,
2015. She noted that last year's filing fees were $2.2
million and would increase an additional $1.2 million,
which totaled $3.4 million.
Co-Chair Thompson OPENED public testimony.
DENISE DANIELLO, EXECUTIVE DIRECTOR, ALASKA COMMISSION ON
AGING, spoke in support of the legislation. She shared that
the corporation served 850 seniors in the past year.
PATRICK REINHART, GOVERNOR'S COUNCIL ON DISABILITIES AND
SPECIAL EDUCATION, ANCHORAGE (via teleconference),
testified in support of the legislation. He believed the
legislation would positively impact low income individuals
with disabilities. He relayed that approximately 40 percent
of the corporation's clients were disabled individuals.
Typical services were provided for illegal eviction due to
disability, assistance with civil protective orders to stop
abuse, denial of federal healthcare coverage or benefits,
and family caregivers in securing healthcare and other
domestic services. He remarked that some clients had to be
turned away due to lack of funds.
Vice-Chair Saddler understood that many of the council's
clients used Alaska Legal Services and wondered whether it
would be helpful if the legislature implemented a similar
funding source for the Alaska Disability Law Center.
Mr. Reinhart responded that the agencies provided different
types of legal services for the disabled. The Alaska
Disability Law Center had a different revenue source and he
did not know the answer.
NIKOLE NELSON, EXECUTIVE DIRECTOR, ALASKA LEGAL SERVICES,
ANCHORAGE (via teleconference), spoke in favor of the
legislation. She shared that the agency was a non-profit
agency that provided free legal services to low income
individuals for 45 years. The critical civil legal services
provided helped to stabilize families, secure safety and
self-sufficiency and provided access to the civil justice
system. The agency assisted parents who had been in abusive
relationships, families with domestic paperwork such as
enrolling children in school, and veterans denied benefits
for disabilities. She expounded that the corporation
operated with staff attorneys, a network of pro bono
attorney's, and its self-help and community education
network. The corporation served over 2,500 Alaskans in 162
communities. Last year ALSC turned away hundreds of
families due to lack of resources. Eight-six percent of
ALSC client's cases had positive results and the
corporation was remarkably cost efficient. Each case
averaged $600 due to resolving cases out of court 80
percent of the time. She furthered that ALSC attorneys were
paid well below the market rate. Resources and services
were leveraged in the amount of $500 million. She voiced
that ALSC helped achieve justice for all and urged support
for the legislation.
Co-Chair Thompson CLOSED public testimony.
Representative Edgmon corrected that the bill did not
create program receipt authority; it established language
to authorize the appropriation of funds from the court
filing fees from the previous year.
Representative Wilson thought the testimony was confusing.
She believed that the legislature could appropriate as much
money into the fund as the legislature wanted.
Representative Edgmon replied that the bill created a
funding mechanism for 25 percent of court filing fees to be
appropriated to the corporation. The legislature did not
guarantee the money. It provided the legislature with the
authority to appropriate the money into the fund.
Representative Wilson clarified that the bill did not limit
the amount of money that could be appropriated into the
fund above the 25 percent of court fees.
Representative Edgmon replied in the affirmative.
Representative Wilson clarified that the bill did not
appropriate any money.
Vice-Chair Saddler asked whether the sponsor was aware of
the court systems intent to increase its fees.
Representative Edgmon replied in the affirmative.
Co-Chair Thompson clarified that there was no guarantee
that the court system would actually increase the fees.
Representative Pruitt declared that currently AS
09.17.020(j) required that 50 percent of awarded punitive
damages were deposited into the general fund for use for
the Civil Legal Services Fund. He wondered why the sponsor
was creating another fund.
Representative Edgmon replied that the intent of the bill
was to provide a more solid, stable funding source in the
future given the state's current fiscal difficulties than
the general fund appropriation. He expressed uncertainty
regarding the level of future funding for the corporation
from the general fund. He noted that ALSC received over $1
million from the state in the 1980s and had to turn away
hundreds of families due to the decline in state revenues.
TIM CLARK, STAFF, REPRESENTATIVE BRYCE EDGMON, elaborated
that at the time the Alaska Legal Services Fund had been
established the capitalization was designed to come from
punitive damages. In the last three years, the state had
collected zero punitive funds and the fund was empty.
Representative Pruitt identified that the legislation
allowed for appropriations from both the punitive damages
fund and the Civil Legal Services Fund. He wondered when
the last deposit from punitive money was appropriated into
the fund.
Mr. Clark replied in the affirmative to the first question.
He elaborated that the legislation did not "concretely"
appropriate money into the fund and only provided an
authorization to appropriate. He felt that the existence of
the funds and appropriation authorization acknowledged the
importance of the services the corporation provided to
Alaskans.
Vice-Chair Saddler wondered whether there was more than one
organization that provided civil legal services to
Alaskans.
Mr. Clark was not aware of any other providers. He deferred
the question to Alaska Legal Services.
Ms. Nelson addressed whether there had been any
appropriations from the punitive damages fund
authorization. She answered that there had been one
appropriation of $110,000 in 2011 from the years 2007 to
2011. Secondly, she replied that there were other
organizations that provided free legal services in Alaska;
however, Alaska Legal Services was the only statewide
provider of comprehensive free legal services. She shared
that other legal services providers delivered niche or
restricted legal services.
2:55:35 PM
Vice-Chair Saddler asked whether other legal services
providers received money from the legal services fund.
Ms. Nelson replied that to her knowledge the only
appropriation was the $110,000 to ALSC.
Representative Gara recalled that the constitution did not
allow dedicated funds but pointed out that the legislature
was inclined to "honor" accounts of this type when money
was available. He though that HB 154 "worked better" than
existing law because determining 25 percent of court filing
fees was easily calculated. He related that even though the
state was entitled to 50 percent of punitive damages; when
parties settled cases most of the awarded settlement was
described as compensatory rather than punitive damages. The
current mechanism was designed to incentivize
underreporting of punitive damages. He stated that the bill
provided a quantifiable amount of money for deposit into
the fund.
Representative Wilson MOVED to REPORT HB 154 out of
committee with individual recommendations and the
accompanying fiscal note.
HB 154 was REPORTED out of committee with a "do pass"
recommendation and with one previously published zero
fiscal note: FN1 (AJS).
2:58:30 PM
AT EASE
3:02:03 PM
RECONVENED