Legislature(2025 - 2026)BUTROVICH 205

01/27/2025 01:30 PM Senate JUDICIARY

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01:30:59 PM Start
01:31:45 PM SB1
01:49:29 PM Adjourn
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
*+ SB 1 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Moved SB 1 Out of Committee
-- Invited & Public Testimony --
**Streamed live on AKL.tv**
                SB   1-CIVIL LEGAL SERVICES FUND                                                                            
1:31:45 PM                                                                                                                    
CHAIR CLAMAN  announced the  consideration of  SENATE BILL  NO. 1                                                               
"An Act  relating to appropriations  to the civil  legal services                                                               
fund."                                                                                                                          
                                                                                                                                
CHAIR  CLAMAN said  this is  the  first hearing  of SB  1 in  the                                                               
Senate Judiciary  Committee. He invited  the bill sponsor  to put                                                               
himself on record and begin his presentation.                                                                                   
                                                                                                                                
1:32:08 PM                                                                                                                    
SENATOR  FORREST DUNBAR,  District J,  Alaska State  Legislature,                                                               
Juneau, Alaska, sponsor of SB 1,  stated a like bill, Senate Bill                                                               
104, was heard by the  Senate Judiciary Committee in the previous                                                               
legislature.  SB 1  increases the  statutory  funding for  Alaska                                                               
Legal  Services  Corporation  (ALSC).  ALSC  is  the  number  one                                                               
provider of  free legal services  to domestic  violence survivors                                                               
in  Alaska.  It  provides  civil  legal  services  to  low-income                                                               
individuals.  He   said  Senate   Bill  104  passed   the  Senate                                                               
unanimously last year and hopes SB 1 passes this year.                                                                          
                                                                                                                                
1:33:28 PM                                                                                                                    
ARIELLE  WIGGIN,  Staff,  Senator Forrest  Dunbar,  Alaska  State                                                               
Legislature,  Juneau, Alaska,  presented  the sectional  analysis                                                               
for SB 1 on behalf of the sponsor.                                                                                              
                                                                                                                                
[Original punctuation provided.]                                                                                                
                                                                                                                                
                       SECTIONAL ANALYSIS                                                                                       
               SB 104: CIVIL LEGAL SERVICES FUND                                                                                
                                                                                                                                
     Section  1: amends  AS 37.05.590  Civil Legal  Services                                                                  
     Fund so that up to  twenty-five percent, instead of ten                                                                    
     percent,   of  Court   System   filing   fees  can   be                                                                    
     appropriated by  the Legislature to the  existing Civil                                                                    
     Legal Services Fund each year.                                                                                             
                                                                                                                                
1:33:51 PM                                                                                                                    
SENATOR TOBIN  questioned why  Section 1  amends AS  37.05.590 to                                                               
read 25 percent rather than 50 percent or another percentage.                                                                   
                                                                                                                                
SENATOR DUNBAR expressed  his belief that the  initial intent was                                                               
25 percent and  through legislative compromise was  lowered to 10                                                               
percent. He  expressed uncertainty  why that specific  amount was                                                               
originally targeted and deferred to Ms. Humm for clarification.                                                                 
                                                                                                                                
1:34:26 PM                                                                                                                    
CHAIR CLAMAN referred  the question to Ms.  Humm, requesting that                                                               
she address the question under "invited testimony."                                                                             
                                                                                                                                
1:34:46 PM                                                                                                                    
CHAIR CLAMAN announced invited testimony on SB 1.                                                                               
                                                                                                                                
1:35:11 PM                                                                                                                    
MAGGIE   HUMM,   Executive   Director,  Alaska   Legal   Services                                                               
Corporation, Anchorage,  Alaska, gave invited testimony  on SB 1.                                                               
ALSC is a nonprofit law  firm that has provided comprehensive and                                                               
free civil legal aid to  low-income Alaskans for almost 60 years.                                                               
She  explained  the work  ALSC  performs  and the  challenges  it                                                               
faces.                                                                                                                          
                                                                                                                                
MS.  HUMM  explained that  civil  legal  aid must  be  adequately                                                               
funded, pointing out that:                                                                                                      
                                                                                                                                
-  Unlike in  criminal  cases, individuals  are  not entitled  to                                                               
   attorneys in civil matters.                                                                                                  
                                                                                                                                
- Both the state and  federal constitutions guarantee due process                                                               
   and equal protection under  the law. However, the  civil legal                                                               
   justice system is facing  a justice crisis because  there is a                                                               
   significant gap between  those who can  identify and  get help                                                               
   for their civil legal needs and those who cannot.                                                                            
                                                                                                                                
-  The  Federal Legal  Services  Corporation  revealed that  low-                                                               
   income Americans  do  not receive  sufficient  legal help  for                                                               
   almost all,  92 percent,  of their  civil legal  problems. The                                                               
   consequences  of   not  having   civil  legal   help  can   be                                                               
   devastating. It can result in lost income and livelihoods,                                                                   
   health care, housing, and jeopardize personal safety.                                                                        
                                                                                                                                
1:36:33 PM                                                                                                                    
MS. HUMM shared  the following story to explain the  type of work                                                               
ALSC does and  the issues that SB 1 addresses. She  said the name                                                               
in the  following story was  changed to protect  the individual's                                                               
identity:                                                                                                                       
                                                                                                                                
     Beth is  an elderly  domestic violence survivor  from a                                                                    
     rural  village. After  her doctor  recognized signs  of                                                                    
     abuse,  she was  referred to  ALSC for  help. With  the                                                                    
     assistance  of an  ALSC attorney,  Beth secured  a one-                                                                    
     year domestic  violence protective order,  ensuring her                                                                    
     safety.  In  addition  to  the  protective  order,  the                                                                    
     attorney  helped  Beth  resolve   an  estate  case  and                                                                    
     execute  a will.  With her  legal matters  resolved and                                                                    
     safety  measures  in place,  Beth  was  able to  safely                                                                    
     return to her home village.                                                                                                
                                                                                                                                
MS. HUMM  said that  ALSC offices and  the statewide  intake unit                                                               
receive requests for  help from people just like  Beth every day.                                                               
ALSC has nearly  60 staff, a vast network of  volunteers who help                                                               
structure  limited resources,  and  a statewide  footprint of  12                                                               
regional offices. She said the  Alaska Legal Services Corporation                                                               
is  innovating  to move  the  needle  forward on  addressing  the                                                               
justice crisis. ALSC setup the first  of its kind, in the nation,                                                               
training  and  resource  center.  This  center  trains  community                                                               
members, who  are not  lawyers, to  provide targeted  civil legal                                                               
assistance. She  said that there  is nationwide interest  in this                                                               
approach to closing the justice  gap, and to developing a network                                                               
of community  justice workers.  Multiple states,  including Texas                                                               
and Arizona,  are either actively  in the process  of replicating                                                               
this model  or looking  to it  as a solution  to close  their own                                                               
justice gap.                                                                                                                    
                                                                                                                                
1:38:09 PM                                                                                                                    
MS. HUMM reported that in state fiscal year 2024, ALSC services:                                                                
                                                                                                                                
- Provided direct representation in  over 6,200 cases across more                                                               
  than 204 communities.                                                                                                         
                                                                                                                                
-  Focused on  Alaska's most  vulnerable, including  survivors of                                                               
  domestic violence and sexual assault, seniors, and individuals                                                                
  with disabilities.                                                                                                            
                                                                                                                                
-  Were the  sole provider  of lawyers  and advocates  delivering                                                               
  this type of assistance in the areas where it operated.                                                                       
                                                                                                                                
- Stabilized households in crisis, preventing problems upstream.                                                                
                                                                                                                                
MS.  HUMM said  that ALSC  services have  a measurable  financial                                                               
impact  on communities.  An  independent  study, commissioned  in                                                               
2012, found that  ALSC services provided a five to  one return on                                                               
investment. Annually, ALSC brings  almost $18 million in economic                                                               
benefits   to   communities   statewide.  She   qualified   these                                                               
statistics, stating they are in 2012 numbers.                                                                                   
                                                                                                                                
1:39:03 PM                                                                                                                    
MS. HUMM  explained ALSC  had to turn  away hundreds  of families                                                               
with compelling  needs who sought  help last year. It  lacked the                                                               
resources  to help.  On average,  ALSC turns  away one  family or                                                               
individual for each one served.  The target population grows each                                                               
year and funding does not keep  pace. She said that state funding                                                               
is  nearly half  of what  it was  40 years  ago, but  the poverty                                                               
population has tripled.                                                                                                         
                                                                                                                                
MS. HUMM informed the committee that  SB 1 pertains to a critical                                                               
funding  source for  the corporation,  the  civil legal  services                                                               
fund. She  explained how the  civil legal services  fund operates                                                               
currently:                                                                                                                      
                                                                                                                                
- At the  legislature's discretion, it is funded by  a 50 percent                                                               
  share of the state's civil punitive damage awards.                                                                            
                                                                                                                                
-  Additionally, up  to 10  percent  of the  Alaska Court  System                                                               
   filing fees collected in the most recent fiscal year is                                                                      
   allocated to the fund.                                                                                                       
                                                                                                                                
MS. HUMM  explained that the  availability of funds  is dependent                                                               
on Alaska  Court System filing  fees and punitive  damage awards,                                                               
causing the  amount collected to  vary. Since its  inception over                                                               
15 years ago,  funds fluctuated from $110,000 to  $0 to $360,000.                                                               
In FY 2024, $296,400 was  appropriated. SB 1 proposes to increase                                                               
the portion of court system  filing fees allocated to 25 percent,                                                               
which  would  have amounted  to  approximately  $741,000 for  the                                                               
current  fiscal year.  ALSC estimates  that for  every additional                                                               
$100,000, it can help 182 more Alaskans.                                                                                        
                                                                                                                                
1:40:51 PM                                                                                                                    
MS. HUMM sought  clarification on a question  pertaining to court                                                               
system filing fee  percentages and whether the  number stated was                                                               
"50" percent.                                                                                                                   
                                                                                                                                
CHAIR CLAMAN replied that is correct.                                                                                           
                                                                                                                                
MS.  HUMM   expressed  her  understanding  that   initially  ALSC                                                               
requested  25  percent.  However,   legislation  passed  in  2018                                                               
approved  ten  percent.  Prior  to  2018,  the  legislature  only                                                               
collected  funds derived  from punitive  damage awards.  She said                                                               
punitive  damages often  totaled  zero  dollars; punitive  damage                                                               
awards  often  bore  no  fruit.  She said  that  ALSC  asked  the                                                               
legislature to amend its funding  source to include 25 percent of                                                               
court  filing fees.  The  legislature  negotiated the  percentage                                                               
down to  10 percent  with a  promise to  revisit the  amount. She                                                               
said that  ALSC has followed up  on this subject for  many years,                                                               
asking for 25  percent. She said the amount could  be 50 percent,                                                               
stating  the amount  appropriated is  not keeping  pace with  the                                                               
rising cost  of providing  services and  the increased  demand of                                                               
services.  Fifty  percent  would  cover  the  cost  of  providing                                                               
services  better. She  said the  proposal is  25 because  that is                                                               
what it has been for the last several years.                                                                                    
                                                                                                                                
MS.  HUMM reiterated  that  there is  an  extraordinary need  for                                                               
critical civil  legal services that  ALSC cannot meet  alone. The                                                               
passage of  SB 1 would promote  fairness and equal access  to the                                                               
justice  system and  help protect  more vulnerable  Alaskans. She                                                               
expressed  appreciation  to  the  committee for  their  time  and                                                               
consideration of SB 1.                                                                                                          
                                                                                                                                
1:42:47 PM                                                                                                                    
SENATOR TOBIN asked with whom the  10, 25, and 50 percent figures                                                               
were negotiated.                                                                                                                
                                                                                                                                
CHAIR  CLAMAN   recalled  that  the  legislation   was  initially                                                               
introduced  at  25  percent.  He  said  that  during  legislative                                                               
discussions,  one  consideration  was   the  figure  which  could                                                               
realistically pass. There was agreement  to move the bill forward                                                               
at 10 percent.  He stated that this decision  was communicated to                                                               
the  Alaska Legal  Services Corporation.  He said  that ALSC  was                                                               
happier at ten percent than zero.  He clarified that ALSC was not                                                               
actively involved  in the negotiations; rather,  advocates within                                                               
the legislature reached a compromise.                                                                                           
                                                                                                                                
1:44:16 PM                                                                                                                    
SENATOR STEVENS referenced a statistic  that for each one served,                                                               
ALSC turns one  away. He asked how ALSC determines  whom to serve                                                               
and whom to turn away.                                                                                                          
                                                                                                                                
MS HUMM  replied this  is an excellent  question that  ALSC staff                                                               
navigate  every  day,  and  she  listed  some  factors  that  are                                                               
considered:                                                                                                                     
                                                                                                                                
- Board of Directors.                                                                                                           
  The board of directors sets ALSC priorities. The organization                                                                 
  functions within that set of priorities for helping its                                                                       
  communities.                                                                                                                  
                                                                                                                                
- The Day-to-Day Resources Available in an ALSC Office.                                                                         
  Resources vary from office to office. She explained whether an                                                                
  individual is served may depend on the workload of that                                                                       
  particular office.                                                                                                            
                                                                                                                                
- Income and Asset Screening.                                                                                                   
  Federal regulation requires ALSC to screen for income and                                                                     
  assets and other eligibility factors.                                                                                         
                                                                                                                                
1:45:49 PM                                                                                                                    
MS.  HUMM   said  that  these  and   other  eligibility  criteria                                                               
determine  who   receives  services.  She  explained   that  even                                                               
individuals  with  high-priority  cases who  meet  financial  and                                                               
other eligibility  requirements are sometimes turned  away due to                                                               
the full  caseload of a  particular office. She noted  that while                                                               
ALSC  has rolling  applications and  always completes  an intake,                                                               
there are  times when  a case  handler or office  is too  busy to                                                               
take on a new case.                                                                                                             
                                                                                                                                
1:46:47 PM                                                                                                                    
CHAIR CLAMAN  opened public testimony  on SB 1; finding  none, he                                                               
closed public testimony.                                                                                                        
                                                                                                                                
1:47:25 PM                                                                                                                    
CHAIR CLAMAN  discussed the differences in  the screening process                                                               
used by large firms that  provide pro bono services. He explained                                                               
that for-profit firms evaluate cases based on three key factors:                                                                
                                                                                                                                
- The strengths and weaknesses of the case.                                                                                     
                                                                                                                                
- The client's ability to pay.                                                                                                  
                                                                                                                                
- In  contingent fee cases,  the at-fault party's ability  to pay                                                               
  damages.                                                                                                                      
                                                                                                                                
CHAIR  CLAMAN noted  that while  the strength  of the  case is  a                                                               
significant  consideration, the  client's financial  situation or                                                               
the potential recovery amount plays a lesser role in the                                                                        
analysis.                                                                                                                       
                                                                                                                                
1:48:51 PM                                                                                                                    
CHAIR CLAMAN solicited the will of the committee.                                                                               
                                                                                                                                
1:48:55 PM                                                                                                                    
SENATOR KIEHL moved to report SB 1, work order 34-LS0004/A, from                                                                
committee with individual recommendations and attached fiscal                                                                   
note(s).                                                                                                                        
                                                                                                                                
1:49:12 PM                                                                                                                    
CHAIR CLAMAN found no objection and SB 1 was reported from the                                                                  
Senate Judiciary Standing Committee.                                                                                            

Document Name Date/Time Subjects
SB 1 version A.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Sponsor Statement 1.23.25.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Sectional Analysis Version A 1.23.25.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Supporting Document - ALSC Fact Sheet January 2025.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Letters of Support.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Letters of Support received as of 1.27.2025.pdf SJUD 1/27/2025 1:30:00 PM
SB 1
SB 1 Fiscal Note DCCED-DCRA 1.24.25.pdf SJUD 1/27/2025 1:30:00 PM
SB 1