HB 106-CIVIL LEGAL SERVICES FUND    2:36:47 PM CHAIR COGHILL announced the consideration of SB 106. 2:37:17 PM REPRESENTATIVE ZACH FANSLER, Alaska State Legislature, sponsor of HB 106, introduced the legislation speaking to the following sponsor statement: This bill will safeguard Alaskans' access to the civil justice system by creating a stable and sustainable mechanism for funding the Alaska Legal Services Corporation, protecting those who cannot afford to hire an attorney of their own. It allows the Legislature to appropriate up to 25 percent of filing fees paid to the Alaska Court System during the previous fiscal year into the already existing Civil Legal Services Fund. The Alaska Legal Services Corporation-established in 1967-is a nonprofit charitable 501(c)(3), whose funding comes from a variety of state, federal, and private sources. Alaska Legal Services Corporation endeavors to serve a growing number of eligible applicants. Since 1984, the number of Alaskans who qualified for legal services has more than doubled, from 41,000 to over 100,000. Yet currently, the state's contribution to The Alaska Legal Services Corporation is only a fraction of what it was 30 years ago. House Bill 106 aims to stabilize the Alaska Legal Services Corporation funding and help ensure that civil legal aid is available to all Alaskans, not just the few who can afford it. 2:38:47 PM CHAIR COGHILL opened public testimony on HB 106. 2:39:32 PM GREG RAZO, President and Chairman of the Board, Alaska Legal Services Corporation (ALSC), Anchorage, Alaska, advised that ALSC provides free legal help to low-income Alaskans and is dedicated to assuring access to justice for all Alaskans. He said HB 106 aims to reduce Alaska's civil justice gap that ALSC has tried to bridge for 15 years. He provided examples of the individuals that ALSC has represented. He said he has volunteered his time to serve on the ALSC board for more than 25 years because he believes in the mission and has seen how these lawyers can change people's lives for the better. He has also witnessed the bad outcomes when Alaskans cannot afford to get the civil legal help they need. He pointed out that defendants who cannot pay are not guaranteed a court-appointed attorney for civil cases. ALSC is their only option. MR. RAZO said he can also attest that ASLC is fiscally prudent, so it can serve as many clients as possible. These attorneys are some of the best lawyers in Alaska. They receive positive results in 86 percent of their cases and they resolve 80 percent of their clients' legal issues without having to go to court. He reported that the ALSC helped 6,500 Alaskans last year but had to turn away 850 clients because they couldn't afford to do the work. The ALSC fund already exists and HB 106 will provide one more funding source. CHAIR COGHILL said Mr. Razo's arguments compelled him to bring the bill up even though he does not generally support a designated funding stream. 2:45:41 PM JOHN BIOFF, General Counsel, Kawerak, Inc., Nome, Alaska, stated that he is testifying in support of HB 106. He said he has worked closely with the ALSC for the last 15 years. It provides a critical service to many of the families in the region who rely heavily on subsistence to survive. Many of the people in this region are not able to afford a private attorney for any civil legal matter and ALSC has provided this service. They have no other recourse and there would be a real civil legal services gap if ALSC attorneys weren't present in the area. 2:48:05 PM NICOLE BORROMEO, Executive Vice President and General Council, Alaska Federation of Natives (AFN), Anchorage, Alaska, stated that the AFN has worked with the Alaska Legal Services Corporation on several issues and has found it to be a great organization that is doing tremendous work in the state. She cited the example several years ago when ALSC helped find a solution when the state and Native community were at odds on a legal matter concerning a Native child and the application of the Indian Child Welfare Act (ICWA). With their help, guidance and technical expertise, emergency regulations were passed and then the statute was changed last year as well. She said that every dollar that ALSC receives is multiplied in terms of benefits that come to Alaskans, not just the Native community but also to veterans, seniors, and children. She urged the committee to pass HB 106 quickly. 2:50:16 PM PATRICK REINHART, Executive Director, Governor's Council on Disabilities and Special Education, Anchorage, Alaska, stated that the council supports HB 106 and has done so in previous years. He said their primarily interest is that many of their beneficiaries use the services of the Alaska Legal Services Corporation. These services are vital for access to housing, health care and food, and protection from abuse. He said the council submitted a letter of support and hopes the committee passes HB 106. 2:51:26 PM MARIE DARLIN, representing AARP and coordinator of the Capital City Taskforce, advised that AARP submitted a letter that lists the reasons for AARP's support for HB 106. It establishes a more stable funding mechanism for the Alaska Legal Services Corporation. She reminded the committee that with the rapidly increasing population of older Alaskans, there will be increased need for ASLC services. CHAIR COGHILL asked the sponsor to explain how the Alaska Legal Services Corporation is funded. REPRESENTATIVE FANSLER deferred the question to his staff. 2:54:57 PM MARY SCHLOSSER, Staff, Representative Zach Fansler, Alaska State Legislature, explained that ALSC is an Alaska organization that was established in 1967. It receives some funding from the national legal services organization as well as a $450,000 grant from the Department of Commerce, Community and Economic Development and occasional punitive damages. She said the commerce grant decreased $100,000 over the last two years while the caseload has steadily increased over the last 10 years. HB 106 would stabilize the funding. SENATOR MEYER asked to hear from the Court System about how they would be affected if 25 percent of the filing fees were dedicated to ALSC. He asked for an explanation that ALSC seems to be doing more with less. REPRESENTATIVE FANSLER clarified that court fees currently go into the undesignated general fund, so the bill would not impact funding for the Court System. Regarding doing more with less, he said the numbers show that there is more need for ALSC services every year. Current estimates indicate that about half of the applications for services are turned away because funding is not stable. CHAIR COGHILL shared that he is not a proponent of designated funding and would therefore be looking for a way to amend the bill. REPRESENTATIVE FANSLER pointed out that the bill states it is not the intent to create a dedicated fund. Future legislatures could choose to appropriate zero percent in lean times and up to 25 percent when the state is in better fiscal shape. 3:00:22 PM CHAIR COGHILL held HB 106 in committee.