HB 161-CIVIL LEGAL SERVICES FUND  1:49:16 PM CHAIR VANCE announced that the final order of business would be HOUSE BILL NO. 161, "An Act relating to appropriations to the civil legal services fund." 1:49:44 PM REPRESENTATIVE STANLEY WRIGHT, Alaska State Legislature, prime sponsor, presented HB 161. He stated that the bill, aiming to enhance appropriations to the Civil Legal Services Fund, is a testament to the collective determination to restore the foundational promise of the legal system: accessible justice for all. The Alaska Legal Services Corporation (ALSC) serves as a beacon of hope by offering indispensable legal assistance to low-income Alaskans. By increasing the funds appropriation, the bill would enable ALSC to extend its reach, and amplify the economic benefits to the state. Every dollar invested generates a remarkable return by empowering residents, stimulating local economies, and alleviating burdens on the court. He explained that increasing support to the ALSC would ensure that individuals have the legal support necessary to navigate the judicial system. 1:51:32 PM RACHEL GUNN, Staff, Representative Stanley Wright, Alaska State Legislature, on behalf of Representative Wright, prime sponsor of HB 161, highlighted the growing gap between those who can afford legal help and those who can't. Despite constitutional guarantees, she said, many are left without necessary legal support due to insufficient funding. ALSC aims to provide fairness in the justice system for all by providing individual legal advice, form drafting, community education, and clinics, and is the largest provider of legal services for victims of domestic violence. The organization demonstrates the undeniable value of legal services by delivering a five-to-one return on investment to state and local economies. Furthermore, 80 percent of cases that make it to the ALSC are mitigated before a court case or administrative hearing, saving the courts valuable time, energy, and cost. However, the efficacy of the ALSC is hampered by funding challenges, with the organization forced to turn away 50 percent of applicants who pre-qualify under the federal poverty guidelines. The stark reality, she said, is that the ALSC funding has not kept pace with the growing need. She stated that HB 161 is a valuable investment that would translate into tangible benefits for communities while ensuring an equitable justice system for all. 1:54:27 PM MAGGIE HUMM, Interim Executive Director, Alaska Legal Services Corporation (ALSC), gave invited testimony during the hearing on HB 161. She addressed the importance of adequately funding civil legal services and gave examples of the work performed by the ALSC. She reported that last year, ALSC's 12 offices around the state provided direct representation to nearly 5,000 families impacting 13,000 individuals. Countless more were served through educational and outreach opportunities. She emphasized the five-to-one return on investment for every dollar invested in ALSC, which is returned to the community in terms of direct economic investment and community savings. She listed a number of cases that the organization is federally prohibited from taking on, including but not limited to abortion, wellness reform, assisted suicide, and redistricting. She reiterated that funding has not kept pace with the growth of the poverty population in Alaska. The bill, she said, is requesting an increase in ALSC's percentage of the Civil Legal Services Fund from 10 percent to 25 percent. She stressed the need for critical legal services, adding that access to justice should be a reality for all Alaskans, not just those who can afford an attorney. 2:00:36 PM REPRESENTATIVE GROH asked whether the ALSC was ever awarded punitive damages by the court. MS. HUM shared her understanding that there had not been punitive damages awarded to ALSC via the state. In response to a follow up question, she shared her understanding that the amount of punitive damages awarded to ALSC under the Civil Legal Services Fund was essentially nonexistent as a source of funding. 2:02:45 PM REPRESENTATIVE ALLARD asked what the increase from 10 to 25 percent would look like in dollars. MS. HUM indicated [that 10 percent] in the most recent fiscal year was $301,000 and 281,000 in the year prior. An increase to 25 percent would be roughly $700,000. REPRESENTATIVE ALLARD asked how the COVID-19 Pandemic impacted ALSC's caseload. MS. HUM reported that the ALSC had 5,000 cases [in 2023], 3,000 [in 2022], and she offered to follow up with [2021] data. 2:04:33 PM REPRESENTATIVE SUMNER questioned the percentage of cases related to evictions. MS. HUM did not know the answer. Nonetheless, she said housing cases are a top issue for the ALSC. In response to a follow up question, she reported that last year, the ALSC helped roughly 700 people with housing matters. 2:05:40 PM REPRESENTATIVE ALLARD indicated that landlords had expressed concern about the bill. She shared a scenario and asked how landlords, who are also struggling, are reconciled. MS. HUM said the ALSC was often able to negotiate with landlords before an eviction case made to court. She added that a great deal of negotiating was done between landlords and tenants for the benefit of both parties. REPRESENTATIVE ALLARD asked how landlords are reconciled if a tenant, who is in the wrong, refuses to pay rent. She questioned whether everyone is treated equally. MS. HUM reiterated that negotiating was helpful because it ultimately benefits both parties. She added that landlords are always free to pursue damages to recoup some of the money. 2:10:13 PM REPRESENTATIVE GRAY asserted that Alaska landlord and tenant laws law favored landlords. He shared a personal anecdote, emphasizing the importance of rental deposits to poor residents. He thanked ALSC and voiced his hope that more could be done for renters. 2:12:01 PM REPRESENTATIVE C. JOHNSON inquired about the remaining 75 percent of the Civil Legal Services Fund. 2:12:50 PM NANCY MEADE, General Counsel, Alaska Court System, responded that all filing fees collected by the court, in addition to punitive damages, are deposited directly into the general fund (GF) for the legislature to appropriate. REPRESENTATIVE C. JOHNSON questioned why there was no fiscal note reflecting the impact on the GF. MS. MEADE shared her understanding that the court submitted a zero fiscal note. CHAIR VANCE noted that two fiscal notes had been submitted, but only one, from DCCED, showed a fiscal impact. 2:15:28 PM REPRESENTATIVE ALLARD asked whether landlords were ever reimbursed. MS. HUM said landlords are permitted to seek attorney fees against a tenant if they are successful. She anecdotally reported that if a case is being dragged out, it's typically due to active negotiations between both parties. CHAIR VANCE questioned the reason for the increase from 10 percent to 25 percent. MS. HUM reported that the poverty population had grown three times since 1984 while state funding had dramatically decreased. She said the increase was to keep pace with both the rising demand for services and the rising cost of providing those services. 2:17:54 PM REPRESENTATIVE CARPENTER asked whether the legislature had appropriated money into the Civil Legal Services Fund from any location other than the authority granted under AS 09.17.020(j) or from the filing fees. 2:18:22 PM SANDRA MOLLER, Director, Division of Community and Regional Affairs, Department of Commerce, Community & Economic Development, said, to her knowledge, no. CHAIR VANCE announced that HB 161 would be held over.