SB 49-CIVIL LEGAL SERVICES FUND  2:04:29 PM CHAIR MCGUIRE announced the consideration of SB 49. "An Act allowing appropriations to the civil legal services fund from court filing fees." She explained that she introduced this legislation after getting involved with Alaska Legal Services Corporation (ALSC) to help women who were victims of domestic violence Speaking as sponsor, she explained that she introduced the bill in previous legislatures to look at funding Alaska Legal Services from the punitive damages fund. The current bill proposes taking 25 percent of the annual filing fees paid to the Alaska Court System. She believes that ALSC should receive adequate funding because it serves people who would otherwise not have legal representation. 2:06:10 PM NIKOLE NELSON, Executive Director, Alaska Legal Services Corporation (ALSC), explained that ALSC is a nonprofit law firm that has been providing free legal help for low-income Alaskans for the past 45 years. Their mission is to ensure that everyone is treated fairly in the justice system. ALSC provides free legal help so people can protect their livelihoods, families, health, and safety. They provide individual advice and representation, self-help materials, community education, and clinics. The work is done by regional staff attorneys in 11 offices statewide and a network of pro-bono volunteers. She reviewed the types of cases and highlighted that last year ALSC provided direct representation in 2,600 cases and served an estimated 43,000 individuals through their website. An additional 2,000 people attended self-help clinics and workshops. She reported that a recent outcome study found that ALSC was successful getting positive results for clients 86 percent of the time, and that there was a 5:1 return on the funds invested in the program. 2:10:15 PM MS. NELSON highlighted the problem that ALSC had to turn away one person for each one it helped last year due to a lack of resources. In 1984 ALSC's appropriation was $1.2 million to serve a poverty population of about 40,000. Today the appropriation is $550,000 and the poverty population is about 106,000. She urged the committee to help ensure that access to justice is a reality for all Alaskans, not just those who can afford an attorney. Passing SB 49 would allow the legislature to appropriate up to 25 percent of the Court System filing fees into the civil legal services fund. The legislature would then have discretion to appropriate that amount each year to Alaska Legal Services Corporation or other organizations providing free legal aid to low-income Alaskans. 2:12:08 PM SENATOR COGHILL asked what other funding ALSC receives, including private sources. MS. NELSON replied a variety of federal, state and private funds make up the $4.2 million budget. ALSC receives funds from the federal government, community partners, private fund raising and foundation support. SENATOR COGHILL asked how the federal government provides funds. MS. NELSON explained that Congress makes an annual appropriation to the national Legal Services Corporation and each state receives a share based on its poverty population. Although Alaska's poverty population is growing, the poverty population in the Lower 48 is growing at a much higher rate so Alaska's share of the appropriation is reduced. SENATOR COGHILL asked how ALSC is connected to the federal Legal Services Corporation. MS. NELSON clarified that the Legal Services Corporation is not a federal agency, but it receives an annual appropriation from Congress and then disburses grants to recipients in each state based on the poverty population in the particular state. SENATOR COGHILL asked how much the Legal Services Corporation receives from Congress on an annual basis. MS. NELSON replied she didn't have that information; she only knew what ALSC has received. SENATOR COGHILL expressed concern that the state is already paying for legal services through the Public Defender Agency and the Office of Public Advocacy, but acknowledged that ALSC cases cover a larger breadth. He said he appreciates and respects the work that ALSC has done helping victims of domestic violence and veterans, but he struggles with the time spent on larger social questions like the Pebble Mine issue. "Sometimes we're actually helping you sue the state. Sometimes the state is a bad actor; I get it. Sometimes it's a larger social question; you don't get me on that," he said. MS. NELSON clarified that Alaska is not an outlier in receiving federal grant monies and that ALSC is not duplicating legal work of state agencies. She further clarified that Alaska Legal Services Corporation did not take a position on the merits of the Pebble Mine case. ALSC filed an amicus brief when the case was before the Alaska Supreme Court addressing the question of whether or not pro-bono attorneys have to disclose all their finances. ALSC's position was that it would be a barrier to getting private attorneys to volunteer their time if it would require that they disclose all their personal finances. SENATOR COGHILL expressed appreciation for the explanation. 2:20:34 PM SENATOR MICCICHE stated support for the merits of the bill and clarified that ALSC only takes on civil cases. It's a pool that isn't available elsewhere, he said. SENATOR COGHILL expressed concern about the cost benefit of taking cases to the Alaska Supreme Court and asked for help putting it in context. MS. NELSON replied ALSC takes on about 2,600 individual cases each year and a very small number (perhaps one percent) go before the Alaska Supreme Court. Examples of the cases at the trial court level might include a victim of domestic violence who was awarded custody of her children. If it's appealed the next stop is the supreme court and ALSC has to follow it up to ensure that the mother retains custody. There isn't anybody else to stand in and preserve her rights. When any case is appealed, the victim needs representation through the complicated appellate system to preserve their rights. SENATOR COGHILL expressed concern with establishing a funding stream that is "free." CHAIR MCGUIRE opened public testimony. 2:27:12 PM ANDREW GAMBLE, Jr, representing himself, Juneau, Alaska, said he's a Vietnam veteran speaking in support of SB 49. He shared the story of Alaska Legal Services Corporation helping him when he tried to settle his mother's estate. They returned his quality of life. 2:31:31 PM GERALD "SANDY" ROBERTS, representing himself, Juneau, Alaska, testified in support of SB 49. He shared the story of being a three-tour Vietnam veteran who was injured in the service. He was reinjured years later but unable to get veteran benefits because his records were lost or destroyed. If someone hadn't finally suggested he go to the Alaska Legal Services Corporation for help, he would probably be a veteran on the streets. SENATOR COSTELLO thanked both veterans for their service to their country. 2:37:22 PM ROBBIN SMITH, representing herself, Anchorage, Alaska, testified in support of SB 49. She shared that the Alaska Legal Services Corporation gave her the courage to fight back against the domestic violence in her life. They provided support and helped her navigate the legal system to get a divorce and get custody of her children. 2:40:08 PM MARIE DARLIN, representative, AARP Alaska, Juneau, Alaska, testified in support of SB 49. She noted the letter of support in the packets that articulates AARP's support for having alternative mechanisms for funding the Alaska Legal Services Corporation. In particular, ALSC has a long, successful history of service to older Alaskans. 2:41:29 PM DENISE DANIELLO, Executive Director, Alaska Commission on Aging, Department of Health and Social Services (DHSS), testified in support of SB 49. She highlighted that seniors have unique financial, health care, and social needs. Many live on a fixed income and receive extensive help from ALSC. She informed the committee that several years ago the commission and ALSC applied for a grant through the U.S. Administration on Aging to provide workshops for seniors to help establish wills, powers of attorney, conservatorships, and guardianships. The money was used to support travel for an ALSC attorney to go to communities that didn't have an ALSC presence. Helping seniors gain access to the civil justice system was greatly appreciated, she said. 2:43:30 PM NANCY MEADE, General Counsel, Office of the Administrative Director, Administrative Staff, Alaska Court System, introduced herself. SENATOR COSTELLO asked what impact the bill will have on the Court System. MS. MEADE replied the Court System does not anticipate a fiscal impact should SB 49 pass. All the fees that are collected go straight to the general fund and the court has no input thereafter. SENATOR COSTELLO asked how much the Court System collects in filing fees. MS. MEADE advised that the amount doesn't vary much from year to year. In FY2014 the court collected $2,252,900; 25 percent of that is $563,225. Looking back five years, 25 percent of the totals range from $563,000 to $660,000. She noted that in response to the state's fiscal picture, the supreme court is considering raising the filing fees by July 1 to coincide with the new fiscal year. Based on the information she's received, that could mean the court would collect up to $1 million more per year. SENATOR COSTELLO asked if the filing fees vary. MS. MEADE replied the court administrative rules list the fees based on the court. For example, the filing fee for an appeal is $150 and the filing fee in superior court for a divorce or some other civil matter is also $150. If the case can be filed in district court because the amount in controversy is lower, the filing fee is $90. There are waivers for indigent parties and the court doesn't collect filing fees from state agencies, which means there are no filing fees for criminal cases. 2:48:41 PM SENATOR MICCICHE asked Ms. Nelson to address whether or not poor Alaskans have more availability to legal representation than the average Alaskan because Senator Coghill's question about equal access and the cost benefit of cases is legitimate. MS. NELSON explained that ALSC attorneys meet once a week to talk about which cases to take on. They are prioritized based on family safety and economic stability, although some grants allow prioritization in other areas. The economic benefit study that looked at the outcomes of ALSC's work showed that 80 percent of the cases were settled without going to court. SENATOR MICCICHE asked if additional funding would allow ALSC to expand its scope and perhaps take on civil cases that Senator Coghill fears because they're social or environmental in nature. MS. NELSON answered no; ALSC's core function is to serve low- income people in civil cases when they can't get representation anywhere else. They would not move into environmental or social work if they had additional resources. SENATOR COGHILL disclosed that he worked with ASLC on veteran allotments. He reiterated that before the legislature provides a funding stream, he wants assurance that all needy people are represented. 2:55:18 PM CHAIR MCGUIRE stated support for Alaska Legal Services Corporation and the safety net it provides for low-income Alaskans. CHAIR MCGUIRE held SB 49 in committee for further consideration.