SB 388-CIVIL LEGAL SERVICES FUND  CHAIR RALPH SEEKINS, sponsor of SB 388, explained to members that SB 388 sets up the Civil Legal Services Fund, into which the legislature may appropriate the punitive damage awards that it currently deposits into the general fund. He noted that in Alaska, 50 percent of punitive damage awards go to the state, 50 percent go to the prevailing party. The Civil Legal Services Fund is to be used to provide legal services to low-income individuals. He believes providing those services is a worthwhile goal and one that he supports strongly. Those legal services are used effectively; clients are not filing frivolous lawsuits but instead pursue legitimate claims that they could not otherwise afford to pursue. SENATOR OGAN asked if an unemployed legislator would qualify for free legal services and, if so, he was declaring a conflict of interest. CHAIR SEEKINS jested if this was Senator Ogan's only job, he probably would qualify. With no questions from members, he took public testimony. MR. ANDY HARRINGTON, representing Alaska Legal Services, thanked committee members for hearing SB 388 and told them Alaska Legal Services is a non-profit agency that provides free legal assistance to low-income people. Alaska Legal Services does not represent people who are charged with crimes; it handles cases in which, for example, a tenant might be faced with a loss of shelter, a working family is faced with a loss of income through garnished wages, or a domestic violence victim is faced with further victimization while trying to navigate the legal system. When a legal defense can be raised on behalf of these clients, Alaska Legal Services makes a case in court for them. In addition, Alaska Legal Services has a considerable education component, which includes a pilot project legal lab where people learn to do their own legal research and learn court system procedures. Its website, Alaskalawhealth.org was specifically designed for that purpose. MR. HARRINGTON informed members that the court system raised this idea while working with Alaska Legal Services on the possibility of establishing a civil filing fee surcharge to raise revenues. He again thanked members for considering this measure. MR. BOB BUNDY, member of the Alaska Legal Services Board of Directors, told members he has practiced law around Alaska for 32 years. He pointed out that Alaska Legal Services is often put in the position of arguing against unrepresented people with no understanding of the law or procedure. Those cases create a bottleneck in the court. In addition, Alaska Legal Services gives legal advice to people, which alleviate the need to spend resources and time engaging in a legal battle that does not need to be fought. It also provides legal services to people who cannot afford services that enable them to get through circumstances in life, such as adoptions, divorces, child custody disputes, and others that can only be addressed by the legal system. When those situations are not addressed, they can turn into gigantic problems later on and are more time consuming for all involved. MR. BUNDY pointed out that Alaska Legal Services does a lot to make sure that people in our society have legal advice and representation, which helps the entire legal system to function better. With the squeeze on revenues everywhere, it has become harder to provide those services, particularly in the Bush. He concluded: The bang for the buck is unbelievable. The lawyers at Legal Services work for much less than any other lawyers you'll find in the state, especially - including people that are actually state employees. These people work for a little bit, they care about their clients and they just do a real good job. I think this is a really worthwhile bill if there's some way to get some money to this group of people to keep this going on. SENATOR FRENCH asked how much state funding Alaska Legal Services receives now and whether he is concerned this bill will act as a proxy for that funding. MR. HARRINGTON said Alaska Legal Services received $125,000 for FY 04 from the state. About 20 years ago, it received $1 million, so its budget has decreased dramatically. In FY 03 it received $175,000. The House budget contains $125,000 for next year but that amount was not included in the Senate budget. He said his "read" of state finances over the next few years is that funding will become increasingly difficult to get, which persuades him that it makes sense to have this dedicated program revenue. He said the bottom line is that Alaska Legal Services is worried that SB 388 may replace a state appropriation, but given the difficulties it has had with state appropriations, SB 388 seems to be the better course to pursue. CHAIR SEEKINS responded: Andy I appreciate that. I think many members share the intent, as a good intent, and don't aim for this to supplant state support but to try to maybe enhance it would be a better word. Again, it is going to be an interesting fund because this bill basically says the legislature may appropriate - it doesn't say that it shall but it may, so we'll have a way to at least apply some leverage and some stronger discussion than just having it get lost somewhere in the subcommittee discussions. He then noted with no further participants, public testimony was closed. The committee took a short at-ease from 8:20 to 8:22 a.m.]. Upon reconvening, SENATOR FRENCH commented that the representatives from Alaska Legal Services addressed his concerns. SENATOR OGAN moved SB 388 with its attached fiscal note from committee with individual recommendations. With no objection, CHAIR SEEKINS announced that SB 388 moved from committee.