Legislature(2015 - 2016)CAPITOL 120
04/07/2015 01:30 PM House JUDICIARY
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| Audio | Topic |
|---|---|
| Start | |
| HB154 | |
| HB106 | |
| SB30 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| += | HB 154 | TELECONFERENCED | |
| += | HB 106 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 147 | TELECONFERENCED | |
| += | SB 30 | TELECONFERENCED | |
HB 154-CIVIL LEGAL SERVICES FUND
1:36:15 PM
CHAIR LEDOUX announced that the first order of business would be
HOUSE BILL NO. 154. "An Act allowing appropriations to the civil
legal services fund from court filing fees."
CHAIR LEDOUX stated that she has a conflict of interest with
respect to this bill in that she sits on the Board of Alaska
Legal Services Corporation and unless someone objects, she will
recuse herself from voting.
REPRESENTATIVE KELLER objected.
1:36:40 PM
REPRESENTATIVE CLAMAN advised that his firm performs pro bono
services for the Alaska Legal Services Corporation (ALSC) on a
monthly basis.
CHAIR LEDOUX objected.
1:37:28 PM
TIM CLARK, Staff, Representative Bryce Edgmon, Alaska State
Legislature, said the bill safe guards access to low income
Alaskans to the civil justice system by creating a stable
mechanism for state funding for ALSC. Specifically, he
explained, it allows the legislature to appropriate to the
already existing civil legal services fund up to 25 percent of
filing fees paid to the Alaska Court System during the previous
fiscal year. He said that according to current filing fee
totals, 25 percent would provide approximately $550,000 annually
to the fund. He noted that it will always be at the
legislature's discretion to appropriate that percentage of fees
both into the fund and to make appropriations from the fund to
ALSC. He offered that this is necessary because the Civil Legal
Services Fund was originally designed to be capitalized by civil
punitive damages collected by the state. However, he noted, the
state has not collected punitive damages in three years. He
advised that the need for state contributions to ALSC is real as
in the past 30 years the number of Alaskans eligible for legal
services has more than doubled from approximately 41,000 to more
than 100,000. Yet, he related, even with HB 154, the state's
contribution to ALSC is a fraction of what it was decades ago.
Currently, he said, the appropriation from the state is
approximately $450,000. Access to ALSC is that civil justice
should not just be for people who can afford an attorney and
that HB 154 is important to ascertain that in Alaska the phrase
"justice for all" rings true.
1:40:58 PM
CHAIR LEDOUX referred to the zero fiscal note and questioned how
there could be a zero fiscal note when the legislature is
appropriating court fees to ALSC, which would otherwise go into
the general fund.
MR. CLARK responded that the fiscal note was issued by the
Alaska Court System which states that currently all legal filing
fees or court fees go directly into the general fund, and there
has never been any receipt authority or any mechanism of that
sort for the Alaska Court System. The zero fiscal note pertains
specifically to their operations. He said the legislature
always retains discretion in its appropriations as to how the
funds are eventually spent or not spent. In that regard, he
explained, it would be the legislature's decision to appropriate
those filing fee percentages into the fund and in turn, their
decision as to whether to appropriate from the fund to civil
legal services.
CHAIR LEDOUX opened public testimony.
1:43:08 PM
NIKOLE NELSON, Executive Director, Alaska Legal Services
Corporation (ALSC), said the Alaska Legal Services Corporation
(ALSC) is aimed at reducing Alaska's civil justice gap. She
explained that ALSC through its more than 20 attorneys provides
free civil legal aid to Alaskans in need. She pointed out that
its mission is to ensure that there is meaningful access to the
civil justice system for all Alaskans and not just those who can
afford it. Assistance is provided to individuals and families
regarding critical legal needs that affect their safety, family
stability, and their self-sufficiency. She described scenarios,
such as: a grandparent raising their grandchildren who is unable
to enroll them in school or to receive health care because they
lack legal documents to do so; an abused spouse that does not
have the financial means to leave the relationship and fears
losing custody of her children if she does; a fisherman who has
spent his life savings to have his boat repaired by an out-of-
state mechanic only to have it return and catch on fire in the
prime of fishing season with no recourse to continue to earn a
living; and/or a veteran denied his federal veterans affairs
benefits despite the fact he has earned them through his service
to this country and his disability leaves him unable to work in
his rural community. She noted that there are civil legal
solutions for these problems, but unlike a criminal defendant's
guarantee that the court will appoint an attorney if the
defendant cannot afford an attorney, there is no such right in
the civil legal context. She related that for people like
these, and thousands like them, ALSC is their only hope to
access Alaska's civil legal services. She pointed out that each
year, approximately 2,500 cases are served and benefit an
additional 6,000 people as most the people served have children
in their households. The Alaska Legal Services Corporation
provides staff attorneys and volunteer pro bono attorneys who
donate their time and expertise. She noted that ALSC serves
thousands more within its self-help resources, and on-line, and
through community education services to ensure that access to
the justice system is a reality for rural residents as well.
She related that the problem is that, despite the fact ALSC is
stretching its legal resources, it is not able to serve everyone
and it is turning away one person for every one that is served.
Ms. Nelson indicated that people are turned away, not because
there are no laws to protect them, and not because their cases
lack merit, but because ALSC does not have the staff and
resources to help.
1:46:41 PM
MS. NELSON related that HB 154 is aimed at providing additional
resources to bridging Alaska's justice gap. She described ALSC
as being cost efficient and effective in that an average case
costs approximately $600. She explained that approximately 80
percent of its cases are resolved without ever going to court,
and attorneys are paid far below the market rate for private bar
or state attorneys. She expressed that last year volunteer
attorneys donated almost $500,000 in their time. She offered
that ALSC is doing what it can but it is not enough to stand
against the justice gap alone.
1:48:07 PM
REPRESENTATIVE GRUENBERG asked whether ALSC is on the "pick-
click-and give" program.
MS. NELSON answered in the affirmative.
REPRESENTATIVE GRUENBERG offered that in other states within bar
dues a person can give an additional donation, and asked if
there is a similar program in Alaska.
MS. NELSON answered in the affirmative.
REPRESENTATIVE GRUENBERG requested the current status of pro
bono which has been under ALSC in the past.
MS. NELSON answered that previously and currently pro bono has
been under ALSC. She described the pro bono program as strong
and it assists in stretching ALSC resources.
1:49:19 PM
REPRESENTATIVE GRUENBERG questioned that with respect to HB 154,
if the money goes to the ALSC, would some of that be sent to pro
bono.
MS. NELSON answered that it could use its state dollars to
extend its resources and it is possible but not guaranteed that
it could go to pro bono.
REPRESENTATIVE GRUENBERG surmised there was nothing to prevent
the state dollars going to pro bono.
MS. NELSON said there is nothing to prevent it.
REPRESENTATIVE GRUENBERG quiered whether pro bono has a separate
funding source or would this be the mechanism.
MS. NELSON responded that the pro bono program is funded through
a variety of sources that fund the entire program, and this is
the proper mechanism.
1:50:17 PM
REPRESENTATIVE GRUENBERG asked whether Ms. Nelson was familiar
with Dimmick v. Watts, 490 P.2d 483 (Alaska 1971).
MS. NELSON said she was not.
REPRESENTATIVE GRUENBERG described it as a case wherein one of
the litigants was sued by a company for debt and that person was
represented by ALSC. He said that the attorney for the company
attempted to get into the question of whether that person was
eligible for legal services. He related that the case went to
the Alaska Supreme Court who said "you cannot inquire whether
this person is eligible for legal services."
1:51:18 PM
CHAIR LEDOUX interjected "Where exactly are you going with
this."
REPRESENTATIVE GRUENBERG replied "I am going because we don't
very often have a bill dealing with legal services."
CHAIR LEDOUX said this is not a seminar on legal services, this
is basically to determine whether ALSC should be funded through
this particular mechanism. She asked that Representative
Gruenberg limit his questions to the subject of the bill before
the committee.
REPRESENTATIVE GRUENBERG offered that he is trying to ascertain
whether that is still a problem and whether legislatively
something should be done.
CHAIR LEDOUX remarked that if there is a problem that needs to
be tended legislatively that has nothing to do with this bill
she was sure Ms. Nelson would be glad to talk with
Representative Gruenberg at another time, and he could prepare a
bill on the issue.
1:52:07 PM
REPRESENTATIVE GRUENBERG advised his second question deals with
circumstances where ALSC is conflicted out.
CHAIR LEDOUX reiterated that he should chat with Ms. Nelson as
to whether she thinks it is a problem, but it is not the subject
of this particular bill.
1:52:36 PM
REPRESENTATIVE FOSTER commented that the Native Corporation in
Nome is contributing office space and that ALSC is doing what it
can to get by. He questioned how much it received from "pick-
click-and give" in round numbers.
MS. NELSON related that the tally is approximately $6,700, which
is up from approximately $5,000 last year.
REPRESENTATIVE FOSTER surmised that amount is a very small
amount of its budget.
MS. NELSON offered that its total overall budget is
approximately $4.2 million.
1:53:27 PM
REPRESENTATIVE CLAMAN surmised that the 25 percent based on
court fees this year would be roughly $500,000.
MS. NELSON advised that it is approximately $550,000.
REPRESENTATIVE CLAMAN asked how that compares with prior years.
MS. NELSON requested clarification in whether he was referring
to prior years of court fees or the ALSC appropriation.
REPRESENTATIVE CLAMAN clarified that his question related to the
appropriation to ALSC.
MS. NELSON responded that in prior years the appropriation has
been $550,000.
1:54:11 PM
REPRESENTATIVE CLAMAN surmised that the state appropriation is
not the majority of funding.
MS. NELSON answered in the affirmative.
REPRESENTATIVE CLAMAN asked whether part of the reason between
using this formula based on court fees rather than using a
population index or cost of living index, is basically trying to
tie funding to a litigation related fee. He offered that if
litigation was going up and more people were filing that the
fees might go up.
MS. NELSON opined that is a smart idea but she is not
necessarily sure that was the intent, although it does make
sense.
1:55:03 PM
CHAIR LEDOUX requested the amount of state funding for the last
several years, and the funding amount from the state this year.
MS. NELSON replied that state funding for the last several years
has been $550,000, and this year the operating budget proposed
by the Senate and House is $450,000, which is approximately a 20
percent cut.
1:55:51 PM
NANCY MEADE, General Counsel, Alaska Court System, said the
Alaska Court System is poised to increase its filing fees by a
good percentage.
CHAIR LEDOUX asked what percentage.
MS. MEADE responded that it varies depending upon the fee for
the item. For example, the current filing fees collected in
FY13 by the Alaska Court System was $2,238,700, and with the
increase in filing fees expects it to go up by another million.
In that regard, she offered, the 25 percent number would go up
by a corresponding order of magnitude.
1:57:12 PM
CHAIR LEDOUX questioned whether the filing fees collected by the
Alaska Court System go into the general fund, or to the courts.
MS. MEADE replied that all fees collected by the Alaska Court
System go straight into the general fund, which is why there is
no fiscal impact from HB 154.
1:57:42 PM
REPRESENTATIVE CLAMAN requested amounts in terms of what the 25
percent was for the last five years.
MS. MEADE responded that with regard to the 25 percent number:
FY14 = $563,225; FY13 = $559,675; FY12 = $569,900; FY11 =
$666,725; FY10 = $653,075. She remarked that they vary somewhat
and the committee can expect those to jump by another half or
so.
1:58:47 PM
REPRESENTATIVE GRUENBERG questioned why the fees have recently
gone down.
MS. MEADE said she does not have information on that and should
not speculate.
CHAIR LEDOUX closed public testimony after ascertaining no one
further wished to testify.
1:59:50 PM
REPRESENTATIVE KELLER moved to report HB 154, Version 29-
LS0765\A out of committee with individual recommendations and
the accompanying zero fiscal note. There being no objection, HB
154 moved from the House Judiciary Standing Committee.
2:01:05 PM
The committee took an at-ease from 2:01 to 2:03 p.m.