Legislature(2023 - 2024)SENATE FINANCE 532

04/12/2023 01:00 PM Senate FINANCE

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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
-- Please Note Time Change --
+ SB 67 PFAS USE FIREFIGHTING TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ SB 87 LUMBER GRADING PROGRAM TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ SB 104 CIVIL LEGAL SERVICES FUND TELECONFERENCED
Heard & Held
-- Invited & Public Testimony --
-- Testimony <Time Limit May Be Set> --
+ Bills Previously Heard/Scheduled: TELECONFERENCED
+= SB 114 OIL & GAS PRODUCTION TAX; INCOME TAX TELECONFERENCED
Heard & Held
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.                                                                                                                  
                                                                                                                                

Document Name Date/Time Subjects
SB 67 Letter of Support for Senate Bill 67.pdf SFIN 4/12/2023 1:00:00 PM
SB 67
SB 67 Urgent action is needed to address PFAS in Alaska to prevent further harm and to protect public health - pass SB 67 with protective amendments!.pdf SFIN 4/12/2023 1:00:00 PM
SB 67
SB 87 Support rec'd by 03.23.23.pdf SFIN 4/12/2023 1:00:00 PM
SB 87
SB 87 DOF Lumber Grading Presentation 04.12.23.pdf SFIN 4/12/2023 1:00:00 PM
SB 87
SB 87 Sponsor Statement ver. A 03.15.23.pdf SFIN 4/12/2023 1:00:00 PM
SRES 3/15/2023 3:30:00 PM
SB 87
SB 87 Sectional Analysis ver. A 03.15.23.pdf SFIN 4/12/2023 1:00:00 PM
SRES 3/15/2023 3:30:00 PM
SB 87
SB 87 ASHBA_Letter of Support_Lumber Grading Program_3.22.23.pdf SFIN 4/12/2023 1:00:00 PM
SB 87
SB 104 Sectional Analysis version A 3.17.2023.pdf SFIN 4/12/2023 1:00:00 PM
SJUD 3/20/2023 1:30:00 PM
SJUD 3/24/2023 1:30:00 PM
SJUD 3/27/2023 1:30:00 PM
SB 104
SB 104 Supporting Testimony - Received as of 3.26.2023.pdf SFIN 4/12/2023 1:00:00 PM
SJUD 3/27/2023 1:30:00 PM
SB 104
SB 104 Sponsor Statement version A 3.17.2023.pdf SFIN 4/12/2023 1:00:00 PM
SJUD 3/20/2023 1:30:00 PM
SJUD 3/24/2023 1:30:00 PM
SJUD 3/27/2023 1:30:00 PM
SB 104
SB 104 Supporting Document - ALSC Civil Legal Services Fund Fact Sheet 3.17.2023.pdf SFIN 4/12/2023 1:00:00 PM
SJUD 3/20/2023 1:30:00 PM
SJUD 3/24/2023 1:30:00 PM
SJUD 3/27/2023 1:30:00 PM
SB 104
SB 67 Letters of Support received by 2023-04-11.pdf SFIN 4/12/2023 1:00:00 PM
SB 67
SB 114 Support Vernon.pdf SFIN 4/12/2023 1:00:00 PM
SB 114
SB114 CS in Finance summary of changes.pdf SFIN 4/12/2023 1:00:00 PM
SB 114
SB 114 work draft version U.pdf SFIN 4/12/2023 1:00:00 PM
SB 114
SB 67 Saunders backup - Report of Findings of PFAS Contamination in Waters of Anchorage and FNSB FINAL 2-13-23.pdf SFIN 4/12/2023 1:00:00 PM
SB 67
SB 87 2023.04.14 Response to Senate Finance Committee on SB 87.pdf SFIN 4/12/2023 1:00:00 PM
SB 87