HF 3860

as introduced - 93rd Legislature (2023 - 2024) Posted on 02/22/2024 04:34pm

A bill for an act
relating to civil law; creating the State Board of Civil Legal Aid; amending
Minnesota Statutes 2022, sections 480.24, subdivisions 2, 4; 480.242; 480.243;
proposing coding for new law in Minnesota Statutes, chapter 480.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2022, section 480.24, subdivision 2, is amended to read:

Subd. 2.

Eligible client.

"Eligible client" means an individual that is financially unable
to afford legal assistance, as determined by a recipient on the basis of eligibility guidelines
established by the deleted text begin supreme court deleted text end new text begin State Board of Civil Legal Aid new text end pursuant to section 480.243,
subdivision 1.

Sec. 2.

Minnesota Statutes 2022, section 480.24, subdivision 4, is amended to read:

Subd. 4.

Recipient.

"Recipient" means a qualified legal services program that receives
funds deleted text begin from the supreme court deleted text end new text begin pursuant to section 480.242 new text end to provide legal services to eligible
clients.

Sec. 3.

Minnesota Statutes 2022, section 480.242, is amended to read:

480.242 DISTRIBUTION OF CIVIL LEGAL SERVICES FUNDS TO QUALIFIED
LEGAL SERVICES PROGRAMS.

Subdivision 1.

Advisory committee.

The deleted text begin supreme court deleted text end new text begin State Board of Civil Legal Aid new text end
shall establish an advisory committee to assist it in performing its responsibilities under
sections 480.24 to 480.244. The advisory committee deleted text begin shall deleted text end new text begin may new text end consist of new text begin no more than new text end 11
members deleted text begin appointed by the supreme court including seven deleted text end new text begin a majority of whom shall be new text end
attorneys-at-law who are well acquainted with the provision of legal services in civil matters,
deleted text begin two deleted text end new text begin and the remaining members shall be divided between new text end public members who are not
attorneys and deleted text begin two persons deleted text end new text begin members new text end who would qualify as eligible clients. deleted text begin Four of deleted text end The
attorney-at-law members shall be nominated by the new text begin Minnesota new text end State Bar Association in the
manner determined by it deleted text begin , and three of the attorney-at-law members shall be nominated by
the programs in Minnesota providing legal services in civil matters on July 1, 1982, with
funds provided by the federal Legal Services Corporation in the manner determined by
them deleted text end . In making the appointments of the attorney-at-law members, the deleted text begin supreme court deleted text end new text begin State
Board of Civil Legal Aid new text end shall not be bound by the nominations prescribed by this section.
In making appointments to the advisory committee, the deleted text begin supreme court deleted text end new text begin State Board of Civil
Legal Aid new text end shall ensure that urban and rural areas of the state are represented. deleted text begin The supreme
court shall adopt by rule policies and procedures for the operation of the advisory committee
including, but not limited to, policies and procedures governing membership terms, removal
of members, and the filling of membership vacancies.
deleted text end

Subd. 2.

Review of applications; selection of recipients.

At times and in accordance
with any procedures deleted text begin as the supreme court adopts in the form of court rules deleted text end new text begin adopted by the
State Board of Civil Aid new text end , applications for the expenditure of civil legal services funds shall
be accepted from qualified legal services programs or from local government agencies and
nonprofit organizations seeking to establish qualified alternative dispute resolution programs.
The applications shall be reviewed by the advisory committee, and the advisory committee,
subject to review by the deleted text begin supreme court deleted text end new text begin State Board of Civil Legal Aid new text end , shall distribute the
funds available for this expenditure to qualified legal services programs or to qualified
alternative dispute resolution programs submitting applications. The funds shall be distributed
in accordance with the following formula:

(a) Eighty-five percent of the funds distributed shall be distributed to qualified legal
services programs that have demonstrated an ability as of July 1, 1982, to provide legal
services to persons unable to afford private counsel with funds provided by the federal Legal
Services Corporation. The allocation of funds among the programs selected shall be based
upon the number of persons with incomes below the poverty level established by the United
States Census Bureau who reside in the geographical area served by each program, as
determined by the deleted text begin supreme court deleted text end new text begin State Board of Civil Legal Aid new text end on the basis of the most
recent national census. All funds distributed pursuant to this clause shall be used for the
provision of legal services in civil and farm legal assistance matters as prioritized by program
boards of directors to eligible clients.

(b) Fifteen percent of the funds distributed may be distributed (1) to other qualified legal
services programs for the provision of legal services in civil matters to eligible clients,
including programs which organize members of the private bar to perform services and
programs for qualified alternative dispute resolution, (2) to programs for training mediators
operated by nonprofit alternative dispute resolution corporations, or (3) to qualified legal
services programs to provide family farm legal assistance for financially distressed state
farmers. The family farm legal assistance must be directed at farm financial problems
including, but not limited to, liquidation of farm property including bankruptcy, farm
foreclosure, repossession of farm assets, restructuring or discharge of farm debt, farm credit
and general debtor-creditor relations, and tax considerations. If all the funds to be distributed
pursuant to this clause cannot be distributed because of insufficient acceptable applications,
the remaining funds shall be distributed pursuant to clause (a).

A person is eligible for legal assistance under this section if the person is an eligible
client as defined in section 480.24, subdivision 2, or:

(1) is a state resident;

(2) is or has been a farmer or a family shareholder of a family farm corporation within
the preceding 24 months;

(3) has a debt-to-asset ratio greater than 50 percent; and

(4) satisfies the income eligibility guidelines established under section 480.243,
subdivision 1.

Qualifying farmers and small business operators whose bank loans are held by the Federal
Deposit Insurance Corporation are eligible for legal assistance under this section.

Subd. 3.

Timing of distribution of funds.

The funds to be distributed to recipients
selected in accordance with the provisions of subdivision 2 shall be distributed by the
deleted text begin supreme court deleted text end new text begin State Board of Civil Legal Aid new text end no less than twice per calendar year.

Subd. 5.

Permissible family farm legal assistance activities.

Qualified legal services
programs that receive funds under the provisions of subdivision 2 may provide the following
types of farm legal assistance activities:

(1) legal backup and research support to attorneys throughout the state who represent
financially distressed farmers;

(2) direct legal advice and representation to eligible farmers in the most effective and
efficient manner, giving special emphasis to enforcement of legal rights affecting large
numbers of farmers;

(3) legal information to individual farmers;

(4) general farm related legal education and training to farmers, private attorneys, legal
services staff, state and local officials, state-supported farm management advisors, and the
public;

(5) an incoming, statewide, toll-free telephone line to provide the advice and referral
described in this subdivision; and

(6) legal advice and representation to eligible persons whose bank loans are held by the
Federal Deposit Insurance Corporation.

Sec. 4.

Minnesota Statutes 2022, section 480.243, is amended to read:

480.243 CLIENT ELIGIBILITY; RECEIPT OF OTHER FUNDS.

Subdivision 1.

Committee eligibility guidelines.

The deleted text begin supreme court deleted text end new text begin State Board of
Civil Legal Aid new text end , with the advice of the advisory committee, shall establish guidelines deleted text begin in the
form of court rules deleted text end to be used by recipients to determine the eligibility of individuals and
organizations for legal services provided with funds received pursuant to section 480.242.
The guidelines shall be designed solely to assist recipients in determining whether an
individual or organization is able to afford or secure legal assistance from private counsel
with respect to the particular matter for which assistance is requested.

Subd. 2.

Receipt of other funds by recipients.

Nothing in this section shall be construed
to prohibit a recipient from soliciting and accepting other public or private funds to be used
for the provision of legal services in civil matters to persons who are not eligible clients,
and the guidelines established pursuant to subdivision 1 shall not apply to the use of other
funds.

Sec. 5.

new text begin [480.246] STATE BOARD OF CIVIL LEGAL AID.
new text end

new text begin Subdivision 1. new text end

new text begin Structure; membership. new text end

new text begin (a) The State Board of Civil Legal Aid is
established in the judicial branch. The board is not subject to the administrative control of
the judiciary. The State Board of Civil Legal Aid shall consist of nine members including:
new text end

new text begin (1) four members appointed by the supreme court;
new text end

new text begin (2) four members appointed by the governor; and
new text end

new text begin (3) one member appointed by the Minnesota State Bar Association.
new text end

new text begin (b) All candidates shall demonstrate an interest in maintaining a high quality civil legal
service. The appointing authorities may not appoint an active judge to be a member of the
State Board of Civil Legal Aid, but may appoint a retired judge. The terms, compensation,
and removal of members shall be as provided in section 15.0575. The members shall elect
the chair from among the membership for a term of two years.
new text end

new text begin Subd. 2. new text end

new text begin Duties and responsibilities. new text end

new text begin (a) The State Board of Civil Legal Aid shall work
to ensure access to high quality civil legal services in every Minnesota county.
new text end

new text begin (b) The board shall:
new text end

new text begin (1) approve and recommend to the legislature a budget for the board and the civil legal
services grants distributed subject to section 480.242;
new text end

new text begin (2) establish procedures for distribution of funding under section 480.242; and
new text end

new text begin (3) establish civil program standards, administrative policies, or procedures necessary
to ensure quality advocacy for persons unable to afford private counsel.
new text end

new text begin (c) The board may propose statutory changes to the legislature and rule changes to the
supreme court that are in the best interests of persons unable to afford private counsel.
new text end

new text begin (d) The board shall not interfere with the discretion, judgment, or zealous advocacy of
legal counsel in their handling of individual cases as a part of the judicial branch of
government.
new text end

new text begin Subd. 3. new text end

new text begin State civil legal aid program administrator. new text end

new text begin The State Board of Civil Legal
Aid shall appoint a program administrator who serves at the pleasure of the board. The
program administrator is not required to be licensed to practice law. The program
administrator shall attend all meetings of the board, but may not vote, and shall:
new text end

new text begin (1) carry out all administrative functions necessary for the efficient and effective operation
of the board and the civil legal aid delivery system, including but not limited to hiring,
supervising, and disciplining program staff;
new text end

new text begin (2) implement, as necessary, resolutions, standards, rules, regulations, and policies of
the board;
new text end

new text begin (3) keep the board fully advised as to its financial condition, and prepare and submit to
the board the annual program and State Board of Civil Legal Aid budget and other financial
information as requested by the board;
new text end

new text begin (4) recommend to the board the adoption of rules and regulations necessary for the
efficient operation of the board and the civil legal aid program; and
new text end

new text begin (5) perform other duties prescribed by the board.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin The board may contract with the judicial branch or other
judicial branch entities for administrative support services for the fiscal years following
fiscal year 2024.
new text end

new text begin Subd. 5. new text end

new text begin Access to records. new text end

new text begin Access to records of the State Board of Civil Legal Aid is
subject to the Rules of Public Access for Records of the Judicial Branch. The State Board
of Civil Legal Aid may propose amendments of the rules for supreme court consideration.
new text end