Legislature(2023 - 2024)SENATE FINANCE 532
04/12/2023 01:00 PM Senate FINANCE
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| Audio | Topic |
|---|---|
| Start | |
| SB87 | |
| SB67 | |
| SB104 | |
| SB114 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 67 | TELECONFERENCED | |
| + | SB 87 | TELECONFERENCED | |
| + | SB 104 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 114 | TELECONFERENCED | |
SENATE BILL NO. 104
"An Act relating to appropriations to the civil legal
services fund."
2:24:17 PM
Co-Chair Olson invited Senator Dunbar to the table.
2:24:36 PM
SENATOR FORREST DUNBAR, SPONSOR, explained that the bill
would increase funding for the Alaska Civil Legal Services
Fund. He shared that legislation allowing the legislature
to appropriate filing fees for ALSC was passed in 2018 and
was originally set at 25 percent but lowered to 10 percent
with the intention to reassess the need for a higher
appropriation later; those contributions were now necessary
to fully support their clients in need. He spoke of his
internship at Alaska Legal Servies and his passion for
providing free legal services to residents in the state.
2:26:45 PM
ARIELLE WIGGIN, STAFF, SENATOR FORREST DUNBAR, discussed a
Sectional Analysis (copy on file):
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.
2:27:14 PM
Senator Wilson referred to the statute and asked where the
remainder of the court filing fees would go.
2:28:03 PM
NIKOLE NELSON, EXECUTIVE DIRECTOR, ALASKA LEGAL SERVICES
CORPORATION, asked whether Senator Wilson was referring to
the 50 percent of punitive damages that were part of the
fund.
Senator Wilson replied in the affirmative.
Ms. Nelson explained that the fund had two components: the
first allowed for 50 percent of punitive damages awarded to
the state to go into the fund, which had not generated much
revenue. She said that the statute that governed the fund
had been amended in 2018 to include 10 percent of court
system filing fees, on top of the punitive damages award.
She said that when the bill was amended in 2018, it had
originally been 25 percent, which was negotiated down to 10
percent, with the caveat that it would be increased if the
fund did not meet community need.
2:30:05 PM
Senator Wilson asked whether the increase would increase
court fees, and if those fees were needed by the Court
System. He wondered whether putting them in the general
fund would leave the Court System in financial need.
Ms. Nelson understood that the funds did not go to the
Court System, but rather into the general fund.
2:31:10 PM
Senator Wilson reiterated his question about court filing
fees.
2:31:47 PM
NANCY MEADE, GENERAL COUNSEL, ALASKA COURT SYSTEM, relayed
that the bill did not impact the finances of the Alaska
Court System. She said that every dollar that the system
collected for filing fees went directly to the general
fund. She stated that the systems budget was not based on
filing fees.
Senator Wilson asked when the last time the Court System
had considered increasing filing fees.
Ms. Meade believed fees had been increased in 2018. She
thought that the increase had been written into intent
language in the Operating Budget. She said that the basic
filing fee for a civil case was $250.
2:33:41 PM
Ms. Nelson continued her testimony. She thanked the
committee for hearing the bill. She stressed that both the
state and federal constitutions guaranteed due process and
equal protection under the law, but a right to council was
not guaranteed in the civil justice system. She said that
there was a gap between those who needed civil legal aid
and those who received it. She said that legal aid had not
kept pace with community need. She provided a background
and the mission of Alaska Legal Services (ALS).
MS. Nelson shared that the mission of ALS was to ensure
fairness to all in the justice system, regardless of
economic status or geographical location. The work was done
through providing individual advice and representation,
providing selfhelp materials, and providing guidance for
those going through the system on their own. The work was
done through twelve regional offices, and the organization
maintained a statewide footprint.
Ms. Nelson continued that the work was done by employees
and volunteers. She listed typical consumers who sought the
help of ALS from day to day, which included some of the
state's most vulnerable residents.
2:37:11 PM
Ms. Nelson emphasized that access to justice in the civil
system was paramount. She cited that ALS received
contributions from communities where their offices were
located. She shared that ALS had provided representation to
thousands of Alaskans, 86 percent of which had resulted in
positive outcomes.
Ms. Nelson noted that there was a $5 to $1 return on funds
invested into the program. She said that ALS had saved the
state $2.6 million in avoided medical and counselling
costs.
Ms. Nelson cited the problem of turning away hundreds of
families per year due to lack of resources. She noted that
the target population continued to grow, while funding had
not kept pace. She said that in 1984, ALS had been
appropriated $1.2 million to serve a target population of
40,000. She stated that in the current state fiscal year
the state appropriation, coming from 2 sources, was equal
to $681,600 to serve a target population of 128,000. She
said that in 1984 the state was spending $28 per person,
which when inflation adjusted for 2023 would be $81 per
person. She lamented that the funds had not increased, or
been adjusted for inflation, and that the state currently
spent $5 per person.
2:40:36 PM
Ms. Nelson stressed that when the fund was amended in 2018
to include the 10 percent filing fees, the promise was to
revisit the matter should it be found that funding was not
sufficient. She stressed that funding had not kept pace,
and the issue needed to be addressed.
2:41:08 PM
Ms. Nelson mentioned that ALS was incredibly cost-efficient
and did the best it could with the available resources.
2:41:47 PM
Senator Bishop understood that ALS turned away 200 cases
per year.
Ms. Nelson clarified that half of the cases brought before
them were turned away due to lack of resources.
Senator Bishop asked whether Ms. Nelson could put a
monetary figure to the number of people that ALS had to
turn away.
Ms. Nelson said that she would provide the information.
She cited that for every additional $100,000 added to the
ALS budget, 180 more clients could be served.
2:43:04 PM
Ms. Nelson mentioned that ALS was leveraging resources with
donated office space and other support from local
communities where offices were located. She said that the
pro bono program had leveraged nearly 4,000 hours of
donated time in the last year. She emphasized that the
state needed to address the civil justice crisis and assure
that access to justice was a reality for everyone.
2:44:24 PM
SANDRA MOLLER, DIRECTOR, DIVISION OF COMMUNITY AND REGIONAL
AFFAIRS, DEPARTMENT OF COMMERCE, COMMUNITY AND ECONOMIC
DEVELOPMENT (via teleconference), addressed the zero FN 1
from DCCED.
2:45:23 PM
AT EASE
2:45:52 PM
RECONVENED
Senator Wilson considered FN 1, which showed fiscal impact
on the 'Grants and Benefits' line and the 'Legal Services'
line through FY24. He asked why there were no reflected
outgoing costs, FY25 through FY29. He thought the note
should be indeterminate rather than zero.
Ms. Moller affirmed that the numbers on the note were
correct. She admitted that the numbers in the outgoing
years were indeterminate.
Senator Wilson argued that the note reflected a zero cost
rather than an indeterminate cost.
Ms. Moller relayed that the fiscal note should be
indeterminate and not zero.
2:48:37 PM
Senator Bishop addressed FN 1 from DCCED, OMB Component
2879.
2:49:11 PM
Co-Chair Olson OPENED public testimony.
2:49:48 PM
AT EASE
2:50:05 PM
RECONVENED
Co-Chair Olson CLOSED public testimony.
SB 104 was HEARD and HELD in committee for further
consideration.