HB 149 - CIVIL LEGAL SERVICES FUND 2:10:05 PM CHAIR RAMRAS announced that the final order of business would be HOUSE BILL NO. 149, "An Act allowing appropriations to the civil legal services fund from court filing fees." The committee took an at-ease from 2:10 p.m. to 2:13 p.m. CHAIR RAMRAS mentioned that the House Judiciary Standing Committee is the sponsor of HB 149, and indicated that the bill is intended to provide additional funding for the State's civil legal services [fund]. 2:14:46 PM JANE W. PIERSON, Staff, Representative Jay Ramras, Alaska State Legislature, explained that HB 149 was written at the request of the Alaska Legal Services Corporation (ALSC), which is a nonprofit law firm that's been in business for 40 years and which responds to the civil legal needs of low-income Alaskans who would otherwise go without legal assistance. The mission of the ALSC is to provide meaningful access to justice [via] resolving legal problems for low-income clients in the civil justice system, thus promoting family stability and reducing the legal consequences of poverty. Although the ALSC stretches its resources in order to help as many people as possible, there are still a large number of unmet needs. House Bill 149, therefore, would provide [an additional] mechanism for funding the ALSC, by allowing the legislature to appropriate up to 25 percent of the filing fees paid to the Alaska Court System (ACS) during the previous year, into the civil legal services fund, which was created last year. For example, in fiscal year (FY) 2008, the ACS collected and turned over to the State of Alaska a total of $2,525,300, and so 25 percent of that amount would represent $631,325 should the legislature choose to appropriate those funds to the ALSC. MS. PIERSON relayed that over the last several years, while still struggling to serve larger and larger numbers of applicants, the ALSC's funding has dwindled, from $4.2 million as of 1987, to $3.1 million as of 2007. Furthermore, appropriations from the State of Alaska that were once as high as $1.2 million, is currently only $200,000. House Bill 149 aims to correct this lack of funding and help ensure civil legal representation for Alaska's most needy population. 2:17:23 PM VANCE A. SANDERS, Attorney at Law; Chair, Board of Directors, Alaska Legal Services Corporation (ALSC), noted that he started working with the ALSC back in 1984, and has been very involved in the program. He characterized the ALSC as an integral part of the justice delivery system in Alaska, noting that a poor person who is not charged with a crime does not have equal access to justice; the ALSC acts as a safety net for a variety of people whom, but for the ALSC, wouldn't have any access to justice at all. Unfortunately, the ALSC is only receiving some federal funding, and so the ALSC must look for additional funding from other sources, such as various municipalities in the state, legislative appropriation, which, again, is now down to $200,000, and other attorneys via the Robert Hickerson Partners in Justice campaign. Simply put, the ALSC needs a more reliable stream of income, Mr. Sanders remarked, adding that the ALSC anticipates that HB 149 would provide for such, though funds would still be subject to annual appropriation, and thus there aren't any constitutional problems with the bill. REPRESENTATIVE COGHILL asked [which other entities] have access to the State's civil legal services fund. MR. SANDERS said he didn't know. 2:21:38 PM REPRESENTATIVE GRUENBERG sought assurance that the ALSC could receive funding from the State's civil legal services fund even though the ALSC also provides assistance to persons over the age of 60 regardless of their income level. MR. SANDERS indicated that the ALSC could still receive funding from the State's civil legal services fund. REPRESENTATIVE GRUENBERG asked whether AS 37.05.590's definition of a "low-income individual" is still accurate. MR. SANDERS indicated that it is. In response to another question, he indicated that that definition doesn't need revision because the percentage listed therein is tied to the federal poverty threshold, which changes annually. In response to a further question, he indicated that it might be helpful to specify in the bill that it is not intended to reduce other funding. CHAIR RAMRAS expressed disfavor with doing so. 2:26:35 PM ANDY HARRINGTON, Attorney at Law; Executive Director, Alaska Legal Services Corporation (ALSC), relayed that in 2008, the ALSC provided direct representation services to over 1,500 families; approximately 1,800 people attended ALSC workshops and clinics; and about 43,000 people obtained assistance from the ALSC's web site. The ALSC has done a lot of good work, he remarked, but due to insufficient resources, had to turn away two out of every three families that sought the ALSC's help, and another 700 people seeking help were referred elsewhere due to staff limitations. The Alaska Supreme Court's Access to Civil Justice Task Force estimates that there are about 33,000 indigent Alaskans facing a legal need during any given year. He opined that the cost effectiveness with which the ALSC delivers these services stems from two factors: the ALSC's volunteer support program, which recruits private attorneys to donate time handling cases for low-income Alaskans, and the much lower salaries of the ALSC's attorneys. He mentioned that the ALSC is struggling to maintain delivery of services in rural areas of the state; that the ALSC has nine offices, one of which is a new office in Kenai; and that funding is obtained from a variety of sources. MR. HARRINGTON, in response to a question, offered his understanding that currently there are two groups which can obtain funding from the State's civil legal services fund, one being the ALSC, and the other being the Alaska Pro Bono Program, Inc. (APBP), which uses the same income and asset eligibility guidelines as the ALSC. Should other, similar organizations change their income and asset eligibility criteria to mirror those of the ALSC and the APBP, he added, then they, too, could obtain funding from the State's civil legal services fund. CHAIR RAMRAS mentioned that the Department of Revenue (DOR) would be submitting a zero fiscal note with the bill. He then, after ascertaining that no one else wished to testify, closed public testimony on HB 149. REPRESENTATIVE GATTO - referring to the aforementioned figure of $631,325 - offered his understanding that passage of the bill is going to result in the ALSC receiving a substantial increase in State funding. REPRESENTATIVE GRUENBERG pointed out that the bill merely gives the legislature the authority to appropriate up to [25 percent of the filing fees received by the ACS during the previous fiscal year] - those funds would still have to be appropriated by the legislature every year. REPRESENTATIVE GATTO offered his belief that the bill would be giving the ALSC a preference over all other organizations, indicating that for that reason he would be voting "no" on the bill. REPRESENTATIVE COGHILL concurred with Representative Gruenberg that the legislature would still have to appropriate any such funding every year, and indicated that he is amenable to the bill and its proposed additional funding source. 2:35:51 PM REPRESENTATIVE COGHILL then moved to report HB 149 out of committee with individual recommendations and the forthcoming zero fiscal note. CHAIR RAMRAS relayed that there was an objection to the motion. A roll call vote was taken. Representatives Lynn, Gruenberg, Holmes, Coghill, and Ramras voted in favor of reporting HB 149 from committee. Representative Gatto voted against it. Therefore, HB 149 was reported out of the House Judiciary Standing Committee by a vote of 5-1.