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2002 FINAL STATELEGISLATIVE PROGRAM MIDDLE RANGE ISSUE
SUMMARY: The Maryland Legal Services Corporation (MLSC) was established by statute in 1982 by the Maryland General Assembly as a means of expanding the availability of legal services to those citizens of the state unable to afford adequate legal counsel. The primary function of the MLSC has been to fund providers of legal services to the poor in non-criminal proceedings. While the MLSC is not an agency of the state, its governing board is appointed by the Governor and confirmed by the Senate, it is required to submit an annual report and audit to the executive and legislative branches of government, and it must have statutory approval of its funding sources. Also specified within the MLSC's enabling statute are restrictions on spending MLSC funds for use in fee-generating cases, criminal proceedings or civil cases arising out of criminal convictions, lobbying or political activities, and class action suits. MLSC funding is provided primarily by a $500,000 annual appropriation from the State abandoned property fund, from proceeds of the Interest on Lawyer Trust Accounts (IOLTA) program, and from surcharges on Circuit and District Court filing fees. The Maryland State Bar Association, Inc. has been a strong advocate for the MLSC in the Maryland General Assembly, supporting its goals and fighting for passage of both the voluntary and comprehensive IOLTA statutes. After passage of comprehensive IOLTA in 1989, the MSBA pressed for legislation to extend the principles of IOLTA to title company trust accounts (Interest on Trust Accounts or IOTA), as a means of closing a major loophole in the law, and establishing a fairer method of regulating these escrow funds. This legislation was passed by the 1992 General Assembly. Opponents of the MLSC filed legislation to return to a voluntary IOLTA system in the 1990 session, but were unsuccessful. In 1991, anti-MLSC legislators took a different tack. Citing both the MLSC's 1989-1990 Annual Report which gave the appearance that the Corporation was holding over $4.4 million in its fund balance, and the pressing needs of the Office of Public Defender (OPD) to provide representation to indigent parents in "Child In Need of Assistance" (CINA) cases, foes of the MLSC introduced a bill to shift $3/4 million to the CINA program. This bill was approved, as were similar measures to take the same amount of funds from the MLSC to assist the CINA program, in the October 1991 special session and the 1992 regular session. There were no attempted raids on the MLSC's funds in the 1993 General Assembly and in 1994 the $1/2 million annual contribution by the MLSC to fund CINA cases was reduced to $250,000. While attacks on the MLSC in the Maryland General Assembly appear to have subsided, Congressional assaults on the Legal Service Corporation, the agency which shares its resources with state and other federal entities that pay for indigent legal programs, have accelerated. This development, when coupled with low interest payments to IOLTA accounts, has significantly reduced the MLSC’s available resources. In a quest to offset these losses, the MLSC in conjunction with other legal service providers, backed legislation in 1996 and 1997 to add a surcharge on circuit and district court filing fees in civil cases. The measure was defeated in the House Judiciary Committee. In 1998, a broad-based coalition from the legal community mounted a major effort to enact a proposal to hike filing fees to pay for legal services to the poor. After the Senate passed an amended bill to increase circuit court charges by $10 and district court fees by $2, and to place the MLSC in the budget of the Judicial branch, the coalition succeeded in convincing the House of Delegates to pass the measure without amendments. The new statute has raised about $7,000,000 in additional revenue for the MLSC since July 1998. MSBA 2002 POSITION: Defend the Maryland Legal Services Corporation against legislative attempts to threaten its authority and independence. Oppose any legislative efforts to return to a voluntary IOLTA system. Continue cooperating with the Maryland Legal Service Corporation and the Office of Public Defender to find a solution to funding the Child In Need of Assistance Program that minimizes the involvement of lawyers and the courts. SAMPLE LEGISLATION:
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