SB 104-CIVIL LEGAL SERVICES FUND  2:15:55 PM CHAIR CLAMAN announced the consideration of SENATE BILL NO. 104 "An Act relating to appropriations to the civil legal services fund." 2:16:30 PM Senator Forest Dunbar, District J, Alaska State Legislature, Juneau, Alaska sponsor of SB 104, stated that this legislation increases funding for the Alaska Legal Services Corporation (ALSC). He shared his story about interning with ALSC while attending law school. During his time with the corporation, he witnessed the work offered to people unable to afford civil legal representation or services. He compared Alaska Legal Services Corporation to a public defender for civil law. The services include elder advocacy, public benefits, consumer protection, family law and housing advocacy. He added that ALSC is the state's largest provider of free civil legal services for survivors of domestic violence. SENATOR DUNBAR mentioned a child custody case he worked on as an intern with the corporation. He shared that he considered the case the most important legal work he participated in. He noted that the corporation sees increased demands for time and services while the funding is lower than it was 40 years ago. He remarked that state investment in the corporation decreased over time. He explained that SB 104 takes a percentage of court filing fees and directs it toward ALSC. The initial contribution involved 25 percent of court filing fees, which was negotiated down to 10 percent with the agreement that the fee percentage would be revisited. He stated that 10 percent of court filing fees provides insufficient contributions to ALSC for support of Alaskans in need of legal aid. CHAIR CLAMAN stated that Ms. Nelson and Ms. Meade were present to respond to questions. 2:19:10 PM Arielle Wiggin, Staff, Senator Forest Dunbar, Alaska State Legislature, Juneau, Alaska provided the sectional analysis for SB 104. Section 1: amends AS 37.05.590 Civil Legal Services Fund so that up to twenty-five percent, instead of ten percent, of Court System filing fees can be appropriated by the Legislature to the existing Civil Legal Services Fund each year. CHAIR CLAMAN stated that he was a member of the legislature when the initial bill addressing state contribution to ALSC was passed. 2:19:51 PM SENATOR KAUFMAN wondered why the percentage of court filing fees was negotiated down to 10 percent. SENATOR DUNBAR deferred the question to Ms. Nelson. CHAIR CLAMAN asked Ms. Nelson to answer the question before she provided invited testimony. 2:20:27 PM Nikole Nelson, Executive Director, Alaska Legal Services Corporation, Anchorage, Alaska informed the committee that the change in filing fee contribution from 25 to 10 percent was negotiated in an attempt to stabilize the funding source, with a commitment to revisit the issue if 10 percent was inadequate. She acknowledged that Senator Claman carried the bill during his time serving in the House to explore whether 10 percent of court filing fees was an adequate contribution to ALSC. She stated that 10 percent is an adequate contribution to provide legal services to eligible Alaskans. 2:21:20 PM SENATOR KIEHL requested a better orientation to the total funding picture. MS. NELSON replied that the state appropriation is not ALSC's only source of revenue. The total budget of $7.5 million comes from various sources. She noted that the corporation receives federal funding, local contributions, fundraising contributions, private donations and the state contribution. She clarified that the state contribution derived from court filing fees represents a small portion of the organization's total funding. She pointed to the criticality of the state contribution for meeting community needs. MS. NELSON furthered that the state appropriation is divided into two sources, a general fund appropriation from the Department of Commerce, Community and Economic Development (DCCED) of $400 thousand and 10 percent of court filing fees. Together the state contributes less than 10 percent of ALSC's total funding. 2:24:33 PM SENATOR KIEHL asked how the additional resources serve communities. MS. NELSON pointed to a study by the Alaska Mental Health Trust Authority showing that for every dollar invested in ALSC, a five-to-one return to state and local economies was seen. Efforts to help people avoid homelessness and domestic violence provide cost savings to state and local communities. The study also showed that for every $100 thousand investment (2012 dollars), ALSC can serve another 182 individuals. She stated that greater inflation increases programmatic costs, so a boost in state dollars helps meet the increased costs. She reminded the committee about the Community Justice Worker Program discussed in a recent Senate Judiciary Standing Committee presentation. She stated that the program was the first of its kind in the nation. She reminded the committee that the program trains new lawyers to provide limited-scope legal assistance to those in need. She explained that additional funding would allow ALSC to actualize the new program. 2:27:24 PM CHAIR CLAMAN moved to invited testimony on SB 104. MS. NELSON provided invited testimony on SB 104. She explained the civil justice crisis in Alaska. She noted that the state and federal constitutions guarantee due process and protection under the law. The civil justice system is facing a crisis due to the gap between people able to receive civil legal help and those who cannot. She explained that the gap reached a crisis level because existing funding has not kept pace with community needs. MS. NELSON continued that ALSC is a nonprofit organization with the mission to ensure fairness for all in the justice system irrespective of a person's income or distance from the courthouse. She noted that ALSC provides legal help for people seeking aid with health, safety and family needs. The corporation provides individual legal advice and form drafting. She added that the corporation provides community education and clinics. She spoke about the variety of people seeking legal services from ALSC. She added that veterans are regularly helped when benefits are denied. 2:31:07 PM MS. NELSON continued to describe the program and all of the services. She added that ALSC helps people keep their homes and ensures that access to justice does not only happen on the road system. She stated that the study showed successful outcomes and eighty percent of cases do not go to court. She stated that ALSC is forced to turn 50 percent of qualified applicants away because of lack of staffing and resources. MS. NELSON continued that ALSC is on the forefront of fighting the epidemic of domestic violence by serving over 1000 survivors of domestic violence. She added that ALSC helped over 2500 seniors and veterans by protecting them from financial and physical abuse and assisting them with processes like wills, probate and powers of attorney. She noted that ALSC helped over 700 families avoid losing their homes. The corporation ensures that access to justice exists off and on the road system. MS. NELSON revisited the Alaska Mental Health Trust Authority study referenced earlier, which showed that ALSC achieves successful outcomes for clients 86 percent of the time. She added that 80 percent of cases resolve without going to court, which saves system resources. She repeated that ALSC turns 50 percent of eligible people seeking legal assistance away. She stated that the target population grows each year while funding remains the same. She noted that ALSC received funding of $1.2 million in 1984 to serve a target population of 40 thousand. In 2022, ALSC received funding of $681 thousand to serve a population that tripled to 128 thousand. 2:34:16 PM MS. NELSON furthered that the state spent $81 dollars per person in 1984 and $5 per person in 2023. She noted that the legislature amended ALSC in 2018 with widespread bipartisan support. She remarked that ALSC is grateful for the state appropriation, but the amount available fluctuates wildly from zero to $360 thousand. She acknowledged that economic times are challenging, but passage of SB 104 ensures the priority of justice for all. 2:35:43 PM SENATOR KAUFMAN asked how client eligibility for legal aid is established. MS. NELSON replied that income information is gathered to determine eligibility. She mentioned that the Federal Legal Services Organization regulates the comprehensive screening process. The income data is documented and audited annually to comply with regulations. CHAIR CLAMAN stated that Senator Dunbar referenced the large number of survivors of domestic violence represented by ALSC. He recalled a statistic related to access to legal services increasing chances that a person will leave an abusive relationship. He wondered about additional studies with similar findings. 2:37:31 PM MS. NELSON replied that multiple studies support the benefits of providing an attorney to a survivor of domestic violence. Legal assistance is one of the most effective ways to end the cycle of abuse. She mentioned that the Attorney General of Alaska supported the creation of a large group of pro bono attorneys to help address the epidemic of sexual assault and domestic violence. CHAIR CLAMAN requested the seminal research mentioned by Ms. Nelson. He shared that while domestic relations cases were challenging, he personally found one to be the most rewarding case in his career. 2:39:28 PM CHAIR CLAMAN opened public testimony on SB 104. 2:39:56 PM PATRICK REINHART, Director, Governor's Council on Disability and Special Education, Homer, Alaska, testified in support of SB 104. He stated that people with intellectual and developmental disabilities are often victims of domestic violence and sexual assault. He spoke about an "I have rights" campaign to teach people with intellectual and developmental disabilities how they can report elements of harm. The council refers people to ALSC and the disability law center of Alaska for support. He stated that both organizations struggle to keep qualified attorneys. He appreciated the committee for hearing the bill and Senator Dunbar for his sponsorship. 2:41:18 PM CHAIR CLAMAN closed public testimony on SB 104. 2:41:38 PM SENATOR GIESSEL remarked that her mother was an attorney who offered pro bono work to seniors. She expressed concern about the fiscal note and the difficulties ahead with the finance committee. She wondered if offering the funding through the finance subcommittee might be a better option. SENATOR DUNBAR replied that he was not a member of the finance subcommittee. He asked finance committee members listening to the meeting to fund ALSC. He recognized the significance of the fiscal note but believed that the bill provides an appropriate use of court fees. He stated that using fees from the legal system to provide access to the system was appropriate. CHAIR CLAMAN clarified that the Senate Judiciary Committee requested the fiscal note, and Senator Kiehl was the chair of the Senate Judiciary Finance Subcommittee. SENATOR GIESSEL wondered if the fiscal note could be a zero fiscal note since the court already collects the filing fees. CHAIR CLAMAN responded that all fees collected go to the general fund. 2:44:00 PM SENATOR KIEHL agreed with Chair Claman about collected fees and the general fund. He added that the civil legal services fund appropriation is a language appropriation, which is not appropriate for consideration by the finance subcommittee. 2:44:27 PM CHAIR CLAMAN held SB 104 in committee for further consideration.