FINAL BILL REPORT

                 ESHB 2276

                         C 319 L 97

                     Synopsis as Enacted

Brief Description:  Promoting civil legal services for indigent persons.

Sponsors:  By House Committee on Law & Justice (originally sponsored by  Representatives Lisk, Huff and Sheahan).

House Committee on Law & Justice

House Committee on Appropriations

Background:  In Washington, various legal service organizations provide civil representation to indigent residents.  These organizations receive funding from different sources, including the federal Legal Services Corporation (LSC), state appropriations, the state supreme court, and private contributions.

State Funding.  Money received by the state treasurer from fees, fines, forfeitures, penalties, reimbursements, or assessments by district courts, municipal courts, and superior courts is deposited in the Public Safety and Education Account (PSEA).  The Legislature appropriates PSEA funds to promote various programs, including the civil representation of indigent persons.

Under Washington law,  any money appropriated from the PSEA for civil representation of indigent persons must be used solely for the purpose of contracting with qualified legal aid programs for representation in matters of:  (1) domestic relations and family law; (2) public assistance, health care, and entitlement programs; (3) public housing and utilities; and (4) unemployment compensation.  Funds distributed to qualified legal aid programs may not be used for lobbying or in class action suits.  A Aqualified legal aid program@ means a not-for-profit corporation, operating exclusively in Washington, which has received funding for civil legal services to indigents under federal law.

Federal Funding.  Congress established the LSC, which makes grants to and contracts with individuals, organizations, and state and local governments to provide legal assistance to indigent persons.  Federal law places various restrictions on the recipients' use of LSC funds.  Some of those restrictions include prohibiting a recipient from:  (1) engaging in grassroots lobbying; (2) participating in any public demonstration, picketing, boycott, or strike; (3) initiating the formation of any association, federation, labor union, coalition, network, alliance, or any similar entity; (4) providing representation to ineligible aliens or offer unsolicited in-person advice; and (5) initiating litigation, or challenging or participating in efforts to reform a federal or state welfare system (except that a recipient may represent a plaintiff seeking specific relief from a welfare agency).  Recently, the federal law was amended to provide that many of the federal restrictions apply not only to federal funds, but also to any other funds the recipient receives.

Under Washington's law, the funds distributed to legal aid programs in Washington are subject to all limitations imposed under federal law Aas currently in effect or hereafter amended.@

Washington=s Legal Services Organizations.  Before January 1996, the Spokane Legal Services Center, Puget Sound Legal Assistance Foundation, and Evergreen Legal Services received some federal funding to provide civil representation  to indigent residents.  The three organizations were recently merged to form Columbia Legal Services (CLS).  CLS receives some state funding and does not receive federal funding.  Civil legal services for indigent residents may also be available through law school clinics, volunteer attorneys, and other programs.

Summary:  The Legislature intends to promote civil legal services to indigent persons, subject to available funds, while ensuring accountability.  The Legislature recognizes both an attorney=s duty to represent clients without interference and the Legislature=s authority to specify the types of cases a legal aid program may participate in using state money.

The definition of a Aqualified legal aid program@ is amended to mean a nonprofit corporation operating exclusively in Washington that has received federal LSC funding or funding from the PSEA before July 1, 1997.

The authorization for legal aid programs to represent people in Aentitlement@ cases and unemployment compensation cases is removed.  The following cases are added to the list of cases a legal aid program may participate in using state funds:  (1) Social Security cases; (2) mortgage foreclosures; (3) home protection bankruptcies; (4) consumer fraud and unfair sales practices; (5) rights of residents of long-term care facilities; (6) wills, estates, living wills; (7) elder abuse; (8) guardianship; and (9) all housing cases instead of only public housing cases.

The restrictions imposed by federal law no longer apply.  However, the following restrictions are specifically added to the existing prohibition against lobbying and class action suits:

Cgrassroots lobbying;

Cparticipating in or identifying the legal aid program with prohibited political activities (including advertising or contributing or soliciting financial support for or against any candidate, political group, or ballot measure, and voter registration or transportation activities);

Crepresentation in fee-generating cases, unless:  (1) the case has been rejected by the local lawyer referral service or two private attorneys; (2) the case would not be considered by the private bar without a consultation fee; (3) past attempts to refer similar cases to the private bar have failed; or (4) there is an emergency.

Corganizing any association, federation, or union, or representing any labor union;

Crepresentation of undocumented aliens;

Cpicketing, demonstrations, strikes, or boycotts;

Cengaging in inappropriate solicitation; and

Cconducting training programs that advocate particular public policies, encourage or facilitate political activities, labor or anti-labor activities, and other various activities.

Rule-making activity is added to the definition of lobbying.  The restrictions and requirements apply only to money appropriated by the Legislature from the PSEA and from other state funds or accounts.

The Department of Community, Trade and Economic Development (CTED) must establish a distribution formula based on the distribution of indigent people by county.  The CTED may establish client contributions, including copayment and sliding fee scale requirements.  Expenditure of state funds must be audited annually by an independent outside auditor, and may be audited by the state auditor.  The legal aid program must make available to the auditors case-specific information, except for confidential and privileged information.  The CTED must recover or withhold amounts that have been improperly used.  The CTED is authorized to adopt rules.

A bipartisan, bicameral legislative oversight committee is established, which must meet at least four times during each fiscal year and accept public testimony in at least two meetings.

Votes on Final Passage:

House  98 0

Senate 45 0

Effective:July 27,  1997