HOUSE BILL NO. 106 "An Act allowing appropriations to the civil legal services fund from court filing fees." 2:36:22 PM REPRESENTATIVE MATT CLAMAN, SPONSOR, thanked the committee for hearing the bill. He explained the legislation. He communicated that the bill would safeguard Alaskans' access to the civil justice system by creating a stable and sustainable mechanism for funding the Alaska Legal Services Corporation (ALSC), protecting those who cannot afford to hire an attorney of their own. The ALSC provided help to seniors, veterans, disabled Alaskans, children, low income workers, consumers, and domestic violence victims. The Senate Judiciary Committee Substitute [SCS HB 106(JUD)] allowed the legislature to appropriate 5 percent of the filing fees paid to the Alaska Court System during the previous fiscal year into the already existing Civil Legal Services Fund. He furthered that the fund was created in 2007 with bipartisan support to help ensure that civil legal aid was available to Alaska's disadvantaged population. He elaborated that deposits to the fund were generated from 15 percent of civil punitive damage awards at the discretion of the legislature. The legislature was authorized to distribute the funds to organizations that provided civil legal services to low income Alaskans. In 2011, ALSC received its only appropriation from the fund in the amount of $110 thousand. The amount was insufficient to address the critical unmet need for civil legal assistance. He noted that in 2017 the attorney general reported that in the last four years the state only collected $15 thousand in punitive damages. He furthered that the Alaska Legal Services Corporation was established in 1967 and was a nonprofit charitable 501(c)(3), whose funding comes from a variety of state, federal, and private sources. Representative Claman continued that the Alaska Legal Services Corporation endeavored to serve a growing number of eligible applicants. Since 1984, the number of Alaskans who qualified for legal services had more than doubled, from 41,000 to over 100,000. Currently, the state's contribution to ALSC was only a fraction of what it was 30 years ago. The state appropriated $1.2 million in 1984 with the appropriation declining to $450 thousand in 2016. The corporation had to turn away hundreds of families each year. The legislation attempted to bridge the civil justice gap by stabilizing ALSC funding and providing civil legal aid to all Alaskans, not just the few who can afford it. Representative Claman relayed from personal experience that his former law practice had volunteered for many years, working with the ALSC performing intake interviews with clients and received a Bar Association award for its work. He personally observed that ALSC's demand for services was much higher than they could provide and underscored the importance of the bill. 2:40:13 PM LIZZIE KUBITZ, STAFF, REPRESENTATIVE MATT CLAMAN, explained the Sectional Analysis (copy on file): Section 1 Amends AS 37.05.590 relating to the Civil Legal Services Fund by inserting language that authorizes the legislature to appropriate up to 25 percent of the filing fees received by the Alaska Court System during the previous fiscal year into the already created Civil Legal Services Fund. 2:42:36 PM Co-Chair MacKinnon OPENED public testimony. 2:42:55 PM NIKOLE NELSON, EXECUTIVE DIRECTOR, ALASKA LEGAL SERVICES CORPORATION, shared that the ALSC was a non-profit law firm dedicated to ensuring access to justice for all Alaskans in the civil legal system. The corporation strove to bridge Alaska's civil justice gap for 50 years. She explained why it was vital to support civil legal aid. She conveyed that both the state and federal constitutions guaranteed due process and equal protection under the law. However, civil legal aid was significantly lacking and created an "enormous justice gap" between individuals who needed civil legal aid and those that could attain it. She voiced that the mission of ALSC was to ensure fairness for all in the civil justice system. She delineated that the corporation provided legal help in protecting individuals' livelihood, health, safety, and families. The corporation offered direct advice and representation as well as self-help information for the public. The corporation maintained a hotline for advice and provided community education and clinics. The corporation had 11 regional offices and 6 medical legal partnerships that enabled it to expand its reach statewide. The offices were located in Anchorage, Juneau, Fairbanks, Kotzebue, Ketchikan, Nome, Bethel, Dillingham, Kenai, Palmer, Utqiagvik, Sitka, and Kodiak. Each office was staffed locally and relied on a vast network of pro bono volunteers due to limited resources. She described the type of clients the ALSC served. She elucidated that women who suffered spousal abuse often in front of their children, or a grandfather who supported his grandchildren and was afraid of losing his home due to a predatory lender, or a commercial fisher who spent her all money on boat repair and the boat subsequently caught on fire, or a disabled veteran denied federal Veteran's Affairs benefits were all examples of individuals that asked ALSC for help on a daily basis. She emphasized that a civil legal solution existed for all the problems she described and the constitutional right for a criminal court appointed attorney was not extended to civil cases. Ms. Nelson continued that the ALSC was at the "forefront of fighting the epidemic of domestic violence that plagued the state, serving over 500 victims per year." In addition, the corporation protected over 1000 seniors and their caregivers and assisted with wills, probates, and power of attorney. The corporation helped over 500 hundred veterans and 300 disabled individuals gain access to healthcare and benefits and 350 families fend off foreclosure and illegal evictions. The ALSC made civil legal services a "reality" for rural Alaskans, which represented over 40 percent of its clients in 182 different communities. The corporation assisted over 3000 families and 7000 individuals with more than 43 thousand visits to its website and 2000 individuals attended its clinics and self-help workshops. She noted a 2012 study by the Alaska Mental Health Trust Authority (AMHTA), which found that for every dollar invested in ALSC it returned $5 to the state. She relayed that ALSC saved the state $600 thousand in avoided emergency shelter costs, $2.6 million for domestic violence victims' medical care and counseling costs and helped disperse federal funds into the economy by assisting those that earned federal benefits receive them. 2:48:31 PM Ms. Nelson furthered her testimony. She relayed that ALSC turned away hundreds of families last year with compelling needs at the rate of one for every one family served. She emphasized that the rejected cases had merit and civil recourse was available but ALSC lacked the staff and resources to assist those in need. She stressed that funding had not kept pace with the growing need. The corporation was "incredibly cost efficient" and 80 percent of cases were resolved out of court with the average case costing $600. She reported that the starting salary for an Anchorage attorney was $44 thousand per year. The corporation leveraged the resources of donated office space and over $500 thousand in volunteer services. She emphasized that HB 106 would help bridge the justice gap and ensure that the principle of "justice for all" remained a priority. Senator Olson was impressed by ALSC and the pro bono services it received. He asked how many law offices provided pro bono services in the state. Ms. Nelson replied that the corporation had a pool of approximately 850 active pro bono attorneys each year. Senator Olson inquired about the number of attorneys ALSC had on staff. Ms. Nelson responded that ALSC had 35 attorneys. Senator Micciche voiced that sometimes the state was sued by ALSC on behalf of clients. He asked how often the corporation sued the state and to discuss under what circumstances ALSC was prohibited from practicing. Ms. Nelson answered that "on occasion" the ALSC took cases where the state was the opposing party. She reported that the number of affirmative lawsuits against the state was less than 10 out of the 3.3 thousand cases each year. Most often the corporation was helping individuals in the "defensive position." She added that the corporation was prohibited via federal regulation from providing services for controversial matters like abortion related services or gerrymandering cases etc. In addition. the ALSC was prohibited from competing with the private bar and did not take on fee generating services such as personal injury cases. She offered to provide a complete list of restrictions. 2:54:01 PM Vice-Chair Bishop appreciated Ms. Nelson's testimony and was supportive of the service the ALSC provided. Senator Micciche noted that the list of restrictions was included in the member's bill packets [titled " Alaska Legal Services Corporation Restrictions on Cases] (copy on file). 2:54:34 PM Co-Chair MacKinnon OPENED public testimony. EMILIE BEASLEY, SELF, MATSU (via teleconference), spoke in support of the bill. She reported that she was 73 years of age, lived in the state since 1977, and served in the Marine Corps. She explained that ALSC helped her remain safe in her home from a family member who threatened her life. She appreciated the respectful attitude of ALSC staff and the representation in court. She urged support of the bill to help protect senior citizens. 2:55:32 PM Vice-Chair Bishop thanked Ms. Beasley for her service to the country. Co-Chair MacKinnon CLOSED public testimony. 2:56:00 PM AT EASE 2:56:33 PM RECONVENED Co-Chair MacKinnon indicated that a new fiscal note was requested from the Office of Management and Budget (OMB). She announced that amendments were due the following day by 5pm and that amendments for HB 219 were due the following day by noon. HB 106 was HEARD and HELD in committee for further consideration.