Legislature(2005 - 2006)BUTROVICH 205
01/19/2005 08:30 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| SB56 | |
| SB19 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| *+ | SB 19 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| = | SB 56 | ||
SB 19-CIVIL LEGAL SERVICES FUND
10:02:47 AM
MR. JOE MISCHEL, aide to Senator Seekins, sponsor of SB 19,
explained that this legislation adds to AS 37.05.146, which
pertains to the definition of program receipts and non-general
fund program receipts. SB 19 is designed to provide a financial
mechanism whereby the legislature can appropriate funds to
organizations that provide civil legal services to low-income
Alaskans. It creates a civil legal services account funded by AS
09.17.020(j). It requires that 50% of all punitive damage awards
be deposited into the general fund.
SENATOR GUESS asked for the origin of the definition of "low
income" and whether that definition will constrain organizations
that use 125% of the poverty level.
CHAIR SEEKINS said the civil legal services people suggested
that definition. He noted that Mr. Harrington was on line.
SENATOR FRENCH asked if a windfall is expected.
CHAIR SEEKINS said it could range from zero to a large number.
He noted that last year the amount would have been $100,000.
10:06:47 AM
SENATOR THERRIAULT asked the source of any windfall.
10:07:07 AM
MR. ART PETERSON, Alaska Legal Services Corporation, told
members he is serving his final term on the legal services board
after serving for 31 years. He explained that SB 19 fits a
funding source into a legislative funding pattern established in
the mid-80s. The source of funds would come from punitive
damages; that amount fluctuates wildly. Last year the amount was
$100,000. The Legal Services Corporation has existed for 40
years. He applauded the staff that work for minimum salaries
and carry a huge workload and reminded members that legal
services attorneys don't just litigate, they also advise. When
an indigent person comes into a legal services office, an
attorney will often write a letter to solve the problem, thereby
avoiding litigation. When litigation occurs, having legal
representation streamlines the judicial process - having an
attorney who knows the procedures can help people through the
legal system more quickly. SB 19 will provide that assistance to
low income Alaskans. The definition of "low income" in SB 19 is
the same one used by Alaska Legal Services and other low-income
programs; the Alaska level is set at 125 percent of the poverty
level. He referred to a graph that showed the amount of funding
provided to the Alaska Legal Services Corporation over the
years. That amount is now at zero. He maintained that is a blow
to one of the most efficient programs in the state.
10:12:50 AM
SENATOR THERRIAULT asked if money from that source now accrues
to the general fund.
MR. PETERSON said it does.
CHAIR SEEKINS asked Mr. Harrington to testify.
10:13:15 AM
MR. ANDY HARRINGTON, Executive Director of the Alaska Legal
Services Corporation, described the corporation as a 501(C)(3)
firm that provides legal assistance to low-income individuals at
no charge. It differs from the public defender agency in that it
only provides services in cases where the law does not recognize
a right to an appointed attorney but where the consequences at
stake in the case are significant to the family, i.e. laws of
shelter or domestic violence. It recruits volunteers through its
pro bono attorney support program, which handles between 100 and
200 cases at any one time. It also offers legal information to
the general public through clinics and the Alaska Law Health
website. Its mission is to provide meaningful access to justice.
It has 8 offices around the state.
MR. HARRINGTON said the idea behind SB 19 stems from an Alaska
Supreme Court task force report, which determined that people
who are unrepresented take more of a judge's time. SB 19
designates a legal fund reserve flowing from Alaska's civil
cases - that is 50 percent of punitive damage awards that go to
the state rather than the plaintiff under current law. He talked
about an eviction case in which the defendant found that Alaska
law gave her more protection than she realized. She had entered
into a "too good to be true" financing arrangement with an
outside firm and lost the house in a foreclosure. The attorneys
from the other side made a settlement offer, the eviction was
set aside and she regained ownership of her house.
10:17:10 AM
MR. HARRINGTON said that SB 19 presents a creative approach. He
then suggested two technical changes: the Legal Services
Corporation sets the eligibility guidelines. Those are set at
125% of the federal poverty guidelines used in the contiguous 48
states. He said one of two changes would be preferable: either
on line 13, after the word "or less than," insert "125% of", or
on lines 13-14 use "or less than the maximum income level for
Alaska set by the federal legal services corporation."
He apologized for not raising that issue earlier. His second
suggestion was to include an effective date. He noted that
legislative support of the legal services staff would be greatly
appreciated.
10:20:04 AM
SENATOR THERRIAULT referred to the packet of information about
funding and asked if the legal services corporation oversees the
state bar pro bono program.
MR. HARRINGTON said it doesn't oversee it but cooperates with
it. The Alaska Bar Association doesn't place cases but makes
attorneys available.
10:21:28 AM
SENATOR THERRIAULT referred to the funding graph and noted the
amount in the current fiscal year went down to zero with the
governor's veto action but in a separate document the 2003 state
dollars amounted to $327,000, which doesn't match the $175,000
FY 03 amount on the graph. The note on the bottom talks about
grants, donated services, gain of dispositional property, etc.
He asked about the disparity between the graph and state
dollars.
10:22:39 AM
MR. HARRINGTON explained that the figures on the chart are taken
from direct legislative appropriations, which came to Alaska
Legal Services through the Departments of Community and Economic
Development (DCED) and the Department of Health and Social
Services (DHSS). The figures on the table came from the Alaska
Legal Services audited financial statements. Those figures
include grants from organizations such as the AkMHTA through the
Alaska Children's Trust, through the Municipality of Anchorage
and through the Fairbanks North Star Borough. The auditors
classified all of that money as state funds despite the fact
that part of it came from boroughs and from competing with other
organizations. The chart reflects direct legislative
appropriations through DCED and formerly through DHSS. He said
the figures in the table include money from other sources.
10:24:30 AM
SENATOR THERRIAULT asked if, with the passage of SB 19, he is
proposing that all of that money be funneled through the new
sub-account in the general fund. He questioned whether the
punitive damage awards would be tagged as a funding source for
operations.
MR. HARRINGTON said that is correct.
SENATOR THERRIAULT asked if there would be a one-year lag so
that this year the legislature would appropriate the funds that
come in from punitive damages and make those funds specific
available next year or whether the legislature would estimate
the amount.
MR. HARRINGTON thought that an estimate would be necessary for
the first year. His vision of how it would work in the long run
is that the money would accumulate and the legislature would
appropriate based on the preceding fiscal year.
10:25:57 AM
SENATOR THERRIAULT said he asked because if the committee takes
action, it would need to convey to the finance committee that
this year's budget would need verbiage saying that all funds
that fit this description need to be appropriated into this sub-
account, and that next year the legislature would have a certain
amount from which it could appropriate.
10:27:02 AM
MR. BILL OBERLE, President of the Alaska Academy Trial Lawyers,
said he appreciates the work done by the Alaska Legal Services
Corporation. He believes that SB 19 provides an excellent
opportunity to fund an organization that is doing valuable work
in Alaska. The Academy supports SB 19.
10:28:33 AM
CHAIR SEEKINS asked members if they preferred using a percentage
for the definition of "low income" or to use the guidelines set
by the federal legal services corporation.
SENATOR GUESS asked for Mr. Harrington's input. She said she
likes the second approach so that any changes do not need to be
made by statute.
MR. HARRINGTON agreed and said a generic reference to the
maximum income level for Alaska is set by the federal legal
services corporation and will avoid the need for future changes.
SENATOR FRENCH asked if the national body looks to each states
cost of living and sets a number for that state.
MR. HARRINGTON said that is correct although the figure is
currently set at 125% of the federal poverty level. The only two
states it looks at that have a different number set for them are
Alaska and Hawaii.
10:30:30 AM
CHAIR SEEKINS said he would have staff work with Mr. Peterson
and Mr. Harrington to clarify the definition of low income and
the appropriation language and bring it before the committee for
further consideration. He hoped to complete the work on SB 56
and continue work on SB 19 at the next meeting.
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