PMWJ C.S.S.B. 1534 75(R)    
BILL ANALYSIS

JUDICIAL AFFAIRS
S.B. 1534
By: Barrientos et al. (Berlanga)
C.S.S.B. 1534
By: Thompson
5-5-97
Committee Report (Substituted)



BACKGROUND

 The need of low-income Texas families for legal representation to 
handle their critical civil 
legal problems (e.g., protection against domestic violence, 
unlawful evictions, and wrongful denial 
of Medicare and Social Security benefits) far exceeds presently 
available resources.  A 1991 State 
Bar of Texas study found that poor Texans go without legal help 
to assist them in almost 70% of the 
legal problems they face.  If unaddressed, a poor family's legal 
problems often become a 
community's problem:  families who are unlawfully evicted become 
homeless; Texans unable to 
obtain protective orders and legal counseling remain in violent 
homes; Texans wrongfully denied 
Medicare or Medicaid forgo health care; families wrongfully 
denied food stamps often go hungry. 
 If low-income people are denied access to legal assistance, 
courts will become even more 
burdened with more unrepresented parties unable to advance their 
cases properly; the already 
overburdened social services agencies will experience sharp 
increases in persons in need of legal 
assistance; and, local government officials will be visited by 
persons looking for solutions to 
problems more properly handled by attorneys.
 Since 1974, the year President Nixon signed the Legal Services 
Act, Congress has funded 
non-profit corporations that provide legal services to the poor.  
The 11 Texas legal services programs 
rely on the federal Legal Services Corporation for over 75% of 
their funding.  In 1996, Congress cut 
LSC funding for Texas Legal Services programs by $9 million, 
almost one-third of the previous 
budget.  Further cuts are threatened for 1998.  Another primary 
source of funding for Texas Legal 
Services programs, the IOLTA (Interest on Lawyers Trust Accounts) 
 program, is tied to interest 
rates and, as a result, has seen its revenues in Texas fall from 
a high of $9.7 million in 1991 to 
approximately $5 million in 1996.  The IOLTA program is also 
facing a serious challenge in federal 
court, where a Fifth Circuit panel has held it unconstitutional.  
All of these cuts are occurring just 
as the number of poor Texans eligible for legal assistance is 
increasing.
 At least 17 state legislatures, including Virginia, Tennessee, 
and Kentucky, have passed some 
form of filing fee add-on legislation to help replace cuts in 
funding to programs that provide legal 
services to the indigent.  


PURPOSE

 The purpose of this bill is to increase the funds available for 
basic legal services to  indigents. 
C.S.S.B. 1534 provides for modest increases in existing civil 
lawsuit filing fees to be dedicated to 
funding non-profit charitable organizations that provide legal 
services to low-income Texans.

 
RULEMAKING AUTHORITY

 This bill expressly grants rulemaking authority to the supreme 
court for the distribution of 
funds created by this act, for establishing income eligibility 
requirements, and for imposing sanctions 
requiring the reduction or cancellation of funding in new 
Government Code Sec. 51.902 in Section 
1 of the bill.  New Section 51.903(b) in Section 1 of the bill 
gives the supreme court the authority 
to approve vouchers before the comptroller may issue payment to 
programs providing basic legal 
services to the indigent.

 
SECTION BY SECTION ANALYSIS

 SECTION 1 amends Chapter 51 of the Government Code by adding a 
new Subchapter J, 
entitled "Additional Filing Fee for Basic Civil Legal Services 
for Indigents,"  to read as follows:
 Section 51.901, Additional Filing Fee for Basic Civil Legal 
Services for Indigents.
 Subsec. (a) requires the clerk of each court to collect, in 
addition to other fees 
authorized or required by law, the following fees on the filing 
of any civil action or 
proceeding requiring a filing fee, including an appeal, 
counterclaim, cross-action, 
intervention, interpleader, or third-party action requiring a 
filing fee:
 Supreme Court and Courts of Appeals:  $25; 
 District Court (other than divorce and other family law matters): 
 $10;
 District Court (for divorce and other family law matters):  $5;
 Statutory and constitutional county courts:  $5; and,
 Justice of the peace courts:  $ 2.
 Subsec. (b) requires that fees collected under this subchapter be 
collected in 
the same manner as other fees, fines, and costs in the case.
 Subsec. (c) requires the clerk to send the fees collected to the 
comptroller at 
least as frequently as quarterly, and requires the comptroller to 
deposit the fees to the 
credit of the basic civil legal services account of the judicial 
fund for use in programs 
approved by the supreme court that provide basic civil legal 
services to the indigent. 
 Subsec. (d) defines "family law matters" and "indigent."
 Section 51.902, Rules, grants rulemaking authority regarding the 
distribution of the 
funds to the supreme court and for imposing sanctions requiring 
the reduction or cancellation 
of funds, and provides that funds may only be distributed to 
nonprofit organizations that 
provide basic legal services to persons meeting the income 
eligibility requirements 
established by the supreme court. 
 Section 51.903, Basic Civil Legal Services Account.
 Subsec. (a) provides that the basic civil legal services account 
is an account 
in the judicial fund administered by the supreme court.
 Subsec. (b) provides that funds in this account may only be used 
to support 
programs that provide basic civil legal services to the indigent. 
 Funds from the 
account may only be paid by the comptroller on vouchers approved 
by the supreme 
court.
 Subsec. (c) provides that with certain exceptions listed in this 
subsection, the 
funds from this account may not be used to directly or indirectly 
support a class 
action lawsuit, abortion-related litigation, or lawsuits against 
a governmental entity, 
political party, candidate or officeholder, or for lobbying for 
against a candidate or 
issue.  Funds from the account may not be used to provide legal 
services in matters 
of asylum unless necessary to protect the physical safety of the 
individual. Funds 
from this account may not be used to represent individuals 
confined in a local, state 
or federal jail or prison.  Funds from this account may be used 
to support a lawsuit 
brought by an individual against a governmental entity to obtain 
benefits provided 
by a government, including social security benefits, aid to 
families with dependent 
children, food stamps, special education for the handicapped, 
Medicare, Medicaid, 
subsidized or public housing, and other economic, shelter, or 
medical benefits 
provided by a government directly to an indigent individual, but 
not including a claim 
for actual or punitive damages.
 Subsec. (d) provides that, with certain exceptions listed in this 
subsection, 
funds from the account may not be used for actions that, if 
undertaken by an attorney 
in private practice, might reasonably be expected to result in 
payment of a fee for 
legal services from an award to the client from public funds or 
an opposing party 
unless the indigent seeking legal assistance made a reasonable 
effort to obtain private 
counsel and has been unable to obtain legal services.
 Subsec. (e) requires the supreme court to file an annual report 
with the 
Legislative Budget Board showing disbursements from the account 
and the purpose 
for each disbursement and provides that all funds expended are 
subject to audit by 
the supreme court, the comptroller and the state auditor.
 Subsec. (f) states that the purpose of this subchapter is to 
increase the funds 
available for basic civil legal services to the indigent and 
provides that these funds
 may be supplemented by local or federal funds and private and 
public grants. 

 SECTION 2.  Effective date.  Application of act.

 SECTION 3.  Emergency clause.


COMPARISON OF ORIGINAL TO SUBSTITUTE

 The submission of fees collected under this subchapter are to be 
submitted by the clerk to the 
comptroller at least as frequently as quarterly under Section 
59.901(c) in Section 1 of the substitute. 
In Section 51.901(c) in the original bill, fees collected under 
this subchapter were to be submitted 
by the clerk to the comptroller at least as frequently as 
monthly. 
 The definition of "indigent" was added to new Gov't Code ' 
51.901(d) in Section 1 of the 
substitute; this was not in the original bill.
 The supreme court was given authority to adopt rules for imposing 
sanctions that define 
circumstances requiring the reduction or cancellation of funding 
in Government Code Sec. 51.902(a) 
in the Section 1 of the substitute; this was not in the original 
bill.  
 Abortion-related litigation and lawsuits against a political 
party, candidate, or officeholder 
for an action taken in the individual's official capacity was 
added to the list of cases that a basic civil 
legal services program for the indigent is prohibited from 
undertaking in Section 51.903(c) in 
Section 1 of the substitute; this was not in the original bill.
  "Funds from the basic legal services account may not be used to 
provide legal services to an 
individual who is not legally in this country in matters of 
asylum unless necessary to protect the 
physicial safety of the individual" was also added to Section 
51.903(c) in Section 1 of the substitute; 
this was not in the original bill.
 Another prohibition on the use of funds from the basic legal 
services account was added to 
Section 51.903(c) in Section 1 of the substitute to prohibit 
representation of individuals confined in 
a local, state or federal jail or prison; this provision was not 
in the original bill.
 Section 51.903(c) in Section 1 of the original bill contained the 
statement, "Funds from the 
basic civil legal services account may be used to support a 
lawsuit against a governmental entity on 
behalf of an individual to secure benefits provided by a 
government directly to an individual, 
including social security benefits, aid to families with 
dependent children, food stamps, special 
education for the handicapped, Medicare, Medicaid, subsidized or 
public housing housing, and other 
economic, shelter, or medical benefits provided by a government 
directly to an indigent individual." 
In the substitute, this was changed to "Funds from the basic 
civil legal services account may be used 
to support a lawsuit brought by an individual against a 
governmental entity [on behalf of an 
individual] to obtain [secure] benefits that the individual or 
the individual's dependent or ward is 
eligible to receive from [provided by] a governmental entity as 
expressly granted under a statute or 
regulation [government directly to an individual], including 
social security benefits, aid to families 
with dependent children, financial assistance under Chapter 31, 
Human Resources Code, food 
stamps, special education for the handicapped, Medicare, 
Medicaid, subsidized or public housing 
housing, and other economic, shelter, or medical benefits 
provided by a government directly to an 
indigent individual but not including a claim for actual or 
punitive damages."
 The substitute added a new Subsec. (d) to Section 51.903 in 
Section 1 of the bill.  New 
Subsec. (d) provides that, with certain exceptions listed in this 
subsection, funds from the account 
may not be used for actions that, if undertaken by an attorney in 
private practice, might reasonably 
be expected to result in payment of a fee for legal services from 
an award to the client from public 
funds or an opposing party unless the indigent seeking legal 
assistance made a reasonable effort to 
obtain private counsel and has been unable to obtain legal 
services.  This provision was not in the 
original bill.
 Section 51.903(d) in Section 1 of the original bill becomes 
Section 51.903(e) in Section 1 
of the substitute and adds the supreme court as an agency which 
may demand an audit; this authority 
was not in the original bill.
 Section 51.903(e) in Section 1 of the original bill becomes 
Section 51.903(f) in Section 1 of 
the substitute.