SENATOR TAYLOR introduced CSHB 151(FIN) (PAYMENT BY INDIGENTS FOR LEGAL SERVICES) as the next order of business. CHRIS CHRISTENSEN, Legal Counsel to the Judicial Branch, explained the legislation was introduced at the request of the Alaska Supreme Court. Mr. Christensen explained that until 1990, Alaska Statutes authorized the court to order a defendant to pay for defense services to the extent that the defendant could afford to pay at that time. For a variety of reasons the statute was ineffective in obtaining repayment of defense costs from indigent defendants. In 1990, at the request of the Supreme Court, the legislature amended AS 18.85.120 to allow civil judgments to be entered against defendants who were represented by the public defender of the Office of Public Advocacy without considering the defendant's current ability to pay. This change ensured the indigent defendants would receive counsel, but that if they ever became non-indigent at some later time, they would repay some small percentage of the cost of their representation. One major problem with the statute as enacted in 1990 was that it allowed a three-year moratorium on repayment following a person's release from incarceration. This moratorium currently makes it substantially more difficult for the state to recover defense costs in a timely manner and imposes a very expensive administrative burden on the Department of Law. Mr. Christensen said outlined the following changes to AS 18.83.120 that are contained in CSHB 151(Fin): (1) removal of the three-year moratorium; and (2) codification of language that is currently contained in Criminal Rule 39. Number 540 SENATOR TAYLOR asked what portion of the actual cost of attorney's fees they anticipate getting repaid. CHRIS CHRISTENSEN answered that under Criminal Rule 39 the charges that will be imposed on criminal defendants are extremely low compared to what a private sector attorney would charge. The money will be collected by the fines collection attorney in the AG's office, and they have estimated that with the changes made in the legislation they would probably collect $850,000 the first year. He added it is a substantial sum of money and it will do a good deal to help offset the tremendous costs that are incurred each year by the state in providing public defender services. TAPE 93-42, SIDE B Number 005 CHRIS CHRISTENSEN further explained that the system that was enacted in 1990 and which this legislation modifies is a civil judgment. With a civil judgement, the defendant has the protection of the Alaska Exemptions Act, which is designed to prevent people from being wiped out by their creditors. Also, this statute would say that if a person can demonstrate manifest hardship to their family to the judge, the judge can even say to protect their PFD. He stressed that they are not zeroing in on indigents, rather these are people who have gotten back on their feet and the amount they would collect is small so as not to force them back into indigentcy. Number 060 SENATOR TAYLOR asked for the pleasure of the committee. SENATOR HALFORD moved that CSHB 151(FIN) be passed out of committee with individual recommendations. SENATOR LITTLE objected. The roll was taken with the following result: Senators Halford, Jacko and Taylor voted "Yea," and Senator Little voted "Nay." The Chair stated the motion passed.