HB 106-CIVIL LEGAL SERVICES FUND  2:31:16 PM CHAIR COGHILL announced the consideration of HB 106 and noted that this was the second hearing. He asked the sponsor's staff if she had anything to add before he proposed an amendment. 2:31:55 PM MARY SCHLOSSER, Staff, Representative Zach Fansler, Alaska State Legislature, pointed out that 48 other states fund organizations like the Alaska Legal Services Corporation and 33 of those states use court fees to do so. CHAIR COGHILL observed that this is a funding source that has been debated for many years and he struggles with designated financing. He advised that he would offer an amendment to reduce the appropriation from 25 percent to five percent. 2:33:41 PM SENATOR WIELECHOWSKI asked what percentage other states use to fund their civil legal services organizations. MS. SCHOLSSER said it varies depending on the size of the state. She suggested Ms. Nelson might have additional information. 2:34:48 PM NIKOLE NELSON, Executive Director, Alaska Legal Services Corporation, Anchorage, Alaska, agreed with Ms. Scholsser that the funding is based on the population of the state. Large states such as Texas provide $8-9 million in a straight appropriation plus $14-15 million in a fee appropriation. Wyoming, which is comparable to Alaska, appropriates $1.3 in filing fees per year. SENATOR WIELECHOWSKI asked how much Alaska currently appropriates. MS. NELSON replied the appropriation for ALSC is currently $450,000. SENATOR WIELECHOWSKI observed that HB 106 would bring Alaska close to Wyoming. CHAIR COGHILL mentioned the amendment he intended to offer. 2:36:13 PM SENATOR COSTELLO noted that ALSC is prohibited from participating in certain cases, one of which is cases where a private attorney would take the case on a contingency fee basis. She asked, "How do you find out whether or not an attorney would take such a case?" MS. NELSON said there are two means. First, ALSC does not take personal injury cases because private attorneys typically take those types of cases on a contingency fee basis. Second, ALSC does not take cases it determines a private attorney might be willing to take. In that instance ALSC requires the person to get three refusals from the private bar. 2:37:19 PM SENATOR MEYER asked if some lawyers do pro bono work on these cases. MR. NELSON said yes; over 100 cases per year are taken on by private attorneys through ALSC's pro bono program. She estimated that private attorneys volunteered over $0.5 million hours in donated hours last year. SENATOR MEYER asked if private attorneys contribute financially. MS. NELSON said yes through a private giving campaign. CHAIR COGHILL advised that the bill would provide just short of $500,000 and his amendment would reduce it to $100,000. He solicited a motion. 2:39:06 PM SENATOR COSTELLO moved Amendment 1, labeled 30-LS0397\A.1. AMENDMENT 1 OFFERED IN THE SENATE BY SENATOR COGHILL TO: HB 106 Page 1, line 8: Delete "25" Insert "five" CHAIR COGHILL objected to explain that the appropriation would be reduced from 25 percent to 5 percent. He shared that he would have difficulty moving the bill without the amendment. SENATOR WIELECHOWSKI objected to Amendment 1, asserting that the ALSC is funded at a much lower rate than it should be. He reviewed some of the documentation in the bill packet including the May 2000 Alaska Supreme Court Access to Civil Justice Taskforce report that recommended funding ALSC at the 1982 level, at a minimum. If that were the case, their inflation adjusted budget would be over $10 million. Five percent does not go far enough, he said. CHAIR COGHILL said he didn't blame him for objecting, but he could not support this funding source when state agency budgets are being cut so drastically. SENATOR COSTELLO mentioned the prohibition against dedicated funding and observed that even without the amendment, there is no guarantee that 25 percent [of court filing fees] would be appropriated to the ALSC fund. CHAIR COGHILL agreed that the legislature has the ability to designate but is not allowed to dedicate funds. He asked Senator Wielechowski if he maintained his objection. 2:42:34 PM SENATOR WIELECHOWSKI noted his minority standpoint and withdrew his objection. SENATOR MEYER asked the chair if he withdrew his objection. CHAIR COGHILL said yes and solicited a motion. 2:43:11 PM SENATOR COSTELLO moved to report HB 106, as amended, from committee with individual recommendations and attached fiscal note(s). CHAIR COGHILL announced that without objection SCS HB 106(JUD) is reported from the Senate Judiciary Standing Committee