Legislature(2005 - 2006)BUTROVICH 205
05/08/2006 09:00 AM Senate JUDICIARY
| Audio | Topic |
|---|---|
| Start | |
| HB316 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 316 | TELECONFERENCED | |
HB 316-EXTEND BOARD OF GOVERNORS ABA
9:07:14 AM
CHAIR RALPH SEEKINS announced CSHB 316(JUD) to be up for
consideration.
REPRESENTATIVE BILL STOLTZ, sponsor, introduced the bill. House
Bill 316 would extend the sunset date of the Board of Governors
of the Alaska Bar Association until June 30, 2007.
9:09:58 AM
SENATOR HOLLIS FRENCH asked Representative Stoltz to articulate
some of the issues concerning the Board.
REPRESENTATIVE STOLTZ responded that the issue of Alaska Bar
dues merits scrutiny and further discussion, which constitutes
the reason for only extending the sunset one-year. The original
bill version asked for a three-year extension. Also there are
innumerable issues within the Alaska Bar that need attention.
9:11:50 AM
SENATOR GENE THERRIAULT said he has been contacted by a number
of attorneys who expressed concern regarding the Bar dues.
REPRESENTATIVE STOLTZ said he has heard that many times. The
dues are among the highest in the country.
9:13:20 AM
PAT DAVIDSON, Legislative Auditor, offered to answer questions.
SENATOR THERRIAULT advised Ms. Davidson that he was interested
in the fund balance and hearing her opinion on whether or not
the Alaska Bar Association should be brought under a state
agency.
MS. DAVIDSON responded that at the end of 2004 the fund balance
was $2.7 million dollars. $676,000 was designated by the Board
of Governors as the working capital. $120,000 was designated for
asset acquisition and $1.9 million is shown as undesignated,
however of that, $1.1 million is in the lawyers fund for client
protection.
With regard to its legal status, that was some debate when they
developed recommendations in the report. One recommendation is
for the Bar Association to go to mandatory legal education.
9:16:07 AM
During the course of the audit, Legislative Research issued the
idea of keeping the revenues and expenditures out of the budget
process. There are many arguments on both sides. The Association
has approximately an $800,000 surplus in the fund balance, which
represents half a year funding. Title 8 says that the fees are
supposed to support the cost of the Board and a 50 percent
surplus is slightly high.
CHAIR SEEKINS asked Ms. Davidson to explain what client
protection means.
MS. DAVIDSON advised there is a client protection fund for when
clients feel their funds have been misused by attorneys. They
can appeal to the Bar Association for refund.
9:18:59 AM
CHAIR SEEKINS asked whether that fund shows any activity.
MS. DAVIDSON advised there were $72,000 in claims award made in
2004.
CHAIR SEEKINS asked whether she knew the five-year average.
MS. DAVIDSON offered to do the research and provide further
details to the committee.
CHAIR SEEKINS speculated that the fund was over reserved.
9:20:22 AM
SENATOR THERRIAULT asked Ms. Davidson whether updating equipment
or expanding office space was involved in any of the funds.
MS. DAVIDSON noted they have an asset acquisition of $120,000
reserved.
CHAIR SEEKINS asked the amount of money that is spent on
meetings.
[MS. DAVIDSON referred to the audit packet]
SENATOR THERRIAULT commented that the Senate did not file a
companion bill on the subject and that the issue of whether the
Bar should have legislative review or control has been around
for years. He speculated whether The Alaska State Legislature
should consider a total shut down and recreation of the Alaska
Bar Association in order to "take care of the problems." He said
it should be considered.
9:24:39 AM
MS. DAVIDSON responded to the earlier budget question and
advised that $262,000 was expensed on the category of "annual
meeting and others" in 2004.
SENATOR CHARLIE HUGGINS asked how a person would get invited to
one of their meetings.
SENATOR FRENCH responded one would have to join the Bar and pay
the dues.
CHAIR SEEKINS asked the amount of the dues.
SENATOR FRENCH offered that he recently wrote a check for $550
to cover the yearly dues.
SENATOR HUGGINS suggested organizations that are flush with cash
could help a lot of people if they were to contribute to needy
organizations such as "victim's rights."
9:26:05 AM
CHAIR SEEKINS said many attorneys suggest that the dues are
high, the parties are lavish, the Association is over-reserved
in funds and yet they do not want any legislative oversight. He
suggested that the Legislature should raise the subject of "Bar
control" at another time.
9:27:19 AM
TERESA OBERMEYER, Attorney, regretfully relayed her opinion that
the Alaska Bar Association is steeped in favoritism. She pledged
to help improve that factor. She charged that discipline in the
Bar Association was a complete failure and used the example of
former Attorney General Greg Renkes. She referenced the 550
licensed Alaska attorneys who are active out of state and said
the overwhelming majority of them have never even been to
Alaska. The rate of passage of the Alaska Bar is less than 60
percent and she suggested that Alaska attorneys should have a
fairer chance to pass and practice law in state.
CHAIR SEEKINS closed public testimony. He clarified that the
bill would extend the termination date for the Board of
Governors to June 30, 2007 and at that time it would begin a
"wind down" process, which would take one year.
SENATOR THERRIAULT agreed and asked Ms. Davidson whether the
Legislature would have the authority to move the sunset date
forward next year and initiate the wind down process earlier
than June 30, 2007.
MS. DAVIDSON said she did not know.
9:34:03 AM
CHAIR SEEKINS speculated that the Legislature could accelerate
the wind down process if they were creating a new entity.
SENATOR THERRIAULT agreed.
SENATOR GRETCHEN GUESS asked Representative Stoltz to comment on
the discussion.
REPRESENTATIVE STOLTZ responded that either route would bring
the issues to the forefront. He deferred to the decision of the
committee.
SENATOR FRENCH moved CSHB 316(JUD) from committee with
individual recommendations and attached fiscal notes. Hearing no
objections, the motion carried.
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