HB 299 - CIVIL LEGAL SERVICES FUND  1:25:51 PM CHAIR GATTO announced that the next order of business would be HOUSE BILL NO. 299, "An Act allowing appropriations to the civil legal services fund from court filing fees." 1:26:07 PM THOMAS STUDLER, Staff, Representative Steve Thompson, Alaska State Legislature, on behalf of the sponsor, Representative Thompson, explained that HB 299 [which is proposing to alter AS 37.05.590] would provide a statutory funding mechanism by which the legislature may appropriate to the state's civil legal services fund up to 25 percent of the filing fees received by the Alaska Court System (ACS) during the previous fiscal year. Appropriations from the civil legal services fund may then go to organizations that provide civil legal services to low-income Alaskans, organizations such as the Alaska Legal Services Corporation (ALSC), which was established in 1966 to address the civil-legal-aid needs of low-income Alaskans. The ALSC, specifically, is a U.S.C. 501(c)(3) non-profit corporation that obtains its funding from a variety of state, federal, and private sources. Such funding, however, has dwindled over the years - from $4.2 million in 1987, to less than $3.1 million as of 2010, with state appropriations decreasing from $1.2 million in fiscal year 1984 (FY 84), to less than $350,000 [in FY 12] - and what has not decreased, and has instead even grown, has been the number of qualified applicants seeking ALSC services. MR. STUDLER explained that HB 299 aims to correct the resultant funding shortfall being experienced by the ALSC, thereby helping to ensure civil legal representation for Alaska's most needy population. Yearly, of those people the ALSC provides services to: over 600 are seniors, over 40 percent reside in rural communities, and over 550 deal with domestic violence (DV). Last year alone, 2,541 qualified Alaskans received services from the ALSC, which, due to funding limitations, was only able to meet the needs of 81 percent of its qualified applicants. MR. STUDLER, in response to questions, indicated that each year, it would be up to the legislature, during the budget process, to determine what percent of received filing fees, if any, to appropriate to the civil legal services fund, though in no instance shall it exceed 25 percent. The bill only addresses funding and services related to civil cases, not criminal cases, and all funding provided for by AS 37.05.590 - whether existing or as proposed by HB 299 - comes from the general fund to begin with. House Bill 299 was introduced to address the funding shortages [experienced by organizations that provide civil legal services to low-income Alaskans, such as the ALSC], and it's estimated that 25 percent of the filing fees received [by the ACS during the previous fiscal year] would amount to [approximately] $666,000. 1:34:44 PM NIKOLE M. NELSON, Executive Director, Alaska Legal Services Corporation (ALSC), in response to questions, explained that if the ALSC were to receive the maximum amount provided for under HB 299, it would represent only a 20 percent increase in the ALSC's overall budget; that such an increase, if all other funding sources stayed flat, would allow the ALSC to serve an additional 500 families - last year the ALSC was forced to turn away [approximately 2,500] families because of a lack of resources; that the intent of HB 299 is to increase the availability of funds in order to meet the civil legal services needs of Alaska's low-income population; that even with the additional funding provided for via HB 299, the ALSC would still be underfunded and thus would still be unable to meet all those needs; and that the hope is that even with passage of HB 299, the ALSC would still receive its "regular" legislative appropriation, with the legislature then being able to give consideration each year during the budget process to possibly providing additional funding as outlined under HB 299. MS. NELSON added that in 2001, the Alaska Supreme Court's Access to Justice Task Force recommended that the ALSC budget be what would now - after adjusting for inflation - amount to approximately $7.5 million, but the ALSC's current budget - from all sources - amounts to only about $3.5 million. Again, even with the maximum amount of additional funding that HB 299 could provide for, the ALSC would still be extremely underfunded - with a budget far below the aforementioned recommendation - and thus would still be unable to meet all of the civil legal services needs of Alaska's low-income population. She then provided the committee with further information about the services the ALSC provides to low-income Alaskans and about its staff, along with some recent statistics, and recounted that over the last five years, in terms of domestic relations cases, the ALSC had a 96 percent success rate in helping clients obtain the results they needed, and that last year the ALSC was on the forefront of fighting the epidemic of domestic violence that plagues Alaska. However, and again, last year the ALSC also had to turn away hundreds of qualified people seeking assistance simply because it lacked the necessary resources to help; the ALSC's client base continues to increase every year, but funding levels have simply not kept pace regardless that the ALSC enjoys widespread, bipartisan community support throughout Alaska. In conclusion, she relayed that in terms of enabling access to the civil justice system regardless of one's financial situation, the ALSC believes that HB 299 would be part of the solution. 1:41:51 PM RICHARD ALLEN, Director, Anchorage Office, Office of Public Advocacy (OPA), Department of Administration (DOA), explained that the OPA's indeterminate fiscal note for HB 299 reflects that there is still a question about whether the OPA would be required to represent the opposing party in situations where someone is being represented by the ALSC. Regardless that that question has yet to be addressed, he opined, the ALSC does a lot of good for a lot of vulnerable Alaskans, and is the appropriate agency to handle the civil legal services needs of low-income Alaskans. 1:43:27 PM QUINLAN STEINER, Director, Central Office, Public Defender Agency (PDA), Department of Administration (DOA), said simply that HB 299 would have no impact on the PDA. 1:43:44 PM MONICA LOONEY recounted that she and her son, victims of domestic violence, sought and received civil legal assistance from the ALSC, allowing the two of them to once again feel safe and no longer in jeopardy from the perpetrator, at least for the time being. In conclusion, she expressed support [for the ALSC], adding that she felt lucky to have been chosen to receive civil legal services from the ALSC given its overwhelming caseload. 1:47:58 PM MICHELE SHARPE recounted that she and her three children, victims of domestic violence, sought and received civil legal services from the ALSC, allowing the four of them to escape from the violence. In conclusion, she expressed her gratitude for the ALSC's assistance, adding that she wanted to stress the importance of that assistance, both to her family and the many others in desperate need of such assistance. 1:51:39 PM J. KATE BURKHART, Executive Director, Alaska Mental Health Board, Division of Behavioral Health (DBH), Department of Health and Social Services (DHSS), explained that the Alaska Mental Health Board supports the passage of HB 299 because the ALSC is the civil legal services agency that most often represents the Alaska Mental Health Board's clients, who often live in poverty. Furthermore, the ALSC employs attorneys who have specialized training and experience in addressing the issues most often faced by those with mental illness. She then disclosed that in the past, she has worked for the ALSC as an attorney. In conclusion, she opined that it is very important for the clients of the Alaska Mental Health Board to have access to the services provided by the ALSC and to be represented by competent and compassionate attorneys, such as those working for the ALSC. 1:54:56 PM MARIE DARLIN, Coordinator, AARP Capital City Task Force, said that the AARP receives many calls from older Alaskans with legal questions and problems who simply don't know where to turn for assistance, and the AARP can refer those who qualify to the ALSC, trusting that the ALSC can be relied upon to do a good job. The number of such calls is only going to increase as Alaska's population ages, she predicted, with more and more elderly Alaskans seeking assistance with all the various issues they face. In conclusion, she said the AARP urges the committee to support HB 299's proposal to provide additional funds to address the civil-legal-aid needs of Alaska's low-income population. CHAIR GATTO, after ascertaining that no one else wished to testify, closed public testimony on HB 299. 1:56:59 PM REPRESENTATIVE GRUENBERG made a motion to adopt Conceptual Amendment 1, to add an immediate effective date to HB 299. He ventured that adoption of Amendment 1 might enable the legislature to consider appropriating funds as allowed under the bill during the current legislative budget process. There being no objection, Conceptual Amendment 1 was adopted. REPRESENTATIVE HOLMES, remarking upon how difficult, daunting, and terrifying it can be to try to navigate the legal system on one's own, and how such efforts can complicate and slow down the civil justice system, characterized HB 299 as a good bill. CHAIR GATTO mentioned that members' packets contain letters of support and two fiscal notes, and offered his understanding of some of the types of cases that the ALSC addresses, those it is prohibited from addressing, and the amount of filing fees the ACS received [during the previous fiscal year]. 2:02:02 PM REPRESENTATIVE HOLMES moved to report HB 299, as amended, out of committee with individual recommendations and the accompanying fiscal notes. There being no objection, CSHB 299(JUD) was reported from the House Judiciary Standing Committee.