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Ronald Reagan Presidential Library
Digital Library Collections
This is a PDF of a folder from our textual collections.
Collection: Barr, William: Files
Folder Title: [Legal Services Corporation Act
Amendment of 1981] (1)
Box: 10
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I
97TH CONGRESS
1ST SESSION
H.R.3480
To amend the Legal Services Corporation Act to provide authorization of
appropriations for additional fiscal years, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MAY 7, 1981
Mr. RODINO (for himself, Mr. KASTENMEIER, Mr. BROOKS, Mr. DANIELSON, Mr.
FRANK, Mr. RAILSBACK, Mr. BUTLER, and Mr. SAWYER) introduced the
following bill; which was referred to the Committee on the Judiciary
A
BILL
To amend the Legal Services Corporation Act to provide au-
thorization of appropriations for additional fiscal years, and
for other purposes.
1
Be it enacted by the Senate and House of Representa-
2 tives of the United States of America in Congress assembled,
3
SHORT TITLE
4
SECTION 1. This Act may be cited as the "Legal Serv-
5 ices Corporation Act Amendments of 1981".
6
STATE ADVISORY COUNCILS
7
SEC. 2. Section 1004(f) of the Legal Services Corpora-
8 tion Act (42 U.S.C. 2996c(f)) is amended to read as follows:
2
1
"(f) Within ninety days after the date of enactment of
2 the Legal Services Corporation Act Amendments of 1981,
3 the Board shall request the Governor of each State to ap-
4 point a ten member advisory council for such State. A major-
5 ity of the members of the advisory council shall be appointed,
6 after recommendations have been received from the State bar
7 association, from among the attorneys admitted to practice in
8 the State, and the membership of the council shall be subject
9 to annual reappointment. The other members of the council
10 shall include two eligible clients and two members of the gen-
11 eral public from that State. If ninety days have elapsed after
12 such request without such an advisory council being appoint-
13. ed by the Governor, the Board shall appoint such a council.
14 The advisory council shall be charged with notifying the Cor-
15 poration of any apparent violation of the provisions of this
16 title and applicable rules, regulations, and guidelines promul-
17 gated pursuant to this title. The advisory council shall, at the
18 same time, furnish a copy of the notification to any recipient
19 affected thereby, and the Corporation shall allow such recipi-
20 ent a reasonable time (but in no case less than thirty days) to
21 reply to any allegation contained in the notification. The Cor-
22 poration and recipients shall notify the relevant State adviso-
23 ry councils promptly of any alleged violations of this title by
24 recipients or their employees. At least sixty days prior to the
25 approval of any grant application or prior to entering into a
H.R. 3480-ih
3
1 contract or prior to the initiation of any other project, the
2 Corporation shall announce publicly such grant, contract, or
3 project and shall send notification thereof to the advisory
4 council of any State in which legal assistance will be pro-
5 vided as a result of the grant, contract, or project. Notifica-
6 tion shall include a specific description of the grant applica-
7 tion or proposed contract or project and a request for com-
8 ments and recommendations. The council shall be given a
9 reasonable opportunity to review and comment on such al-
10 leged violations and on such grants, contracts, and
11 projects.".
12
ENFORCEMENT AND SANCTIONS
13
SEC. 3. (a) Section 1006(b)(5) of the Legal Services
14 Corporation Act (42 U.S.C. 2996(b)(5)) is amended by strik-
15 ing out the second sentence and inserting in lieu thereof the
16 following: "The Board, within thirty days after the date of
17 enactment of the Legal Services Corporation Act Amend-
18 ments of 1981, shall issue regulations to provide for the en-
19 forcement of this title, which regulations shall include, among
20 available remedies, provisions for the immediate suspension
21 of financial assistance under this title, suspension of an em-
22 ployee of the Corporation or any employee of any recipient
23 by such recipient or by the President of the Corporation, and
24 the reduction or termination of such assistance or employ-
25 ment as deemed appropriate for the violation involved. Fi-
H.R. 3480-ih
4
1 nancial assistance under this title shall not be terminated or
2 suspended for a period of more than thirty days unless the
3 recipient, grantee, or contractor has been afforded reasonable
4 notice and opportunity for a fair hearing pursuant to regula-
5 tions promulgated by the Corporation.".
6
(b)(1) Section 1011 of the Legal Services Corporation
7 Act (42 U.S.C. 2996j) is repealed.
8
(2) The amendment made by paragraph (1) shall not
9 affect any proceeding pending on the date of enactment of
10 this Act which is being conducted in accordance with section
11 1011 of the Legal Services Corporation Act.
12
(c) Section 1007(a)(9) of such Act (42 U.S.C.
13 2996f(a)(9)) is amended to read as follows:
14
"(9) insure that every grantee, contractor, or
15
person or entity receiving financial assistance under
16
this title that files with the Corporation a timely appli-
17
cation for refunding is provided interim funding, pend-
18
ing the decision of the Corporation on the application,
19
sufficient to allow for the continuation of representation
20
of clients on whose behalf litigation, negotiation, or
21
other forms of representation have been initiated; and".
22
PROHIBITIONS ON LOBBYING
23
SEC. 4. (a) Section 1006(c) of the Legal Services Corpo-
24 ration Act (42 U.S.C. 2996e(c)(2)) is amended to read as
25 follows:
H.R. 3480-ih
5
1
"(c) The Corporation shall not itself participate in litiga-
2 tion unless the Corporation or a recipient of the Corporation
3 is a party, or a recipient is representing an eligible client in
4 litigation in which the interpretation of this title or a regula-
5 tion promulgated under this title is an issue, and shall not
6 participate on behalf of any client other than itself. The pro-
7 visions of section 1913 of title 18, United States Code, shall
8 apply to all officers and employees of the Corporation.".
9
(b) Section 1007(a)(5) of the Legal Services Corporation
10 Act (42 U.S.C. 2996f(a)(5)) is amended to read as follows:
11
"(5) insure that no funds made available to any
12
recipient shall be used at any time, directly or indirect-
13
ly, to attempt to influence any decision by a Federal,
14
State, or local agency, to attempt to influence, directly
15
or indirectly, through publicity, propaganda, or other-
16
wise, the introduction, passage, or defeat of any legis-
17
lation in the Congress of the United States, or in any
18
State or local legislative body, or to attempt to influ-
19
ence State proposals by initiative petition, except
20
where-
21
"(A) legal assistance is provided by an em-
22
ployee of a recipient to an eligible client on a par-
23
ticular application, claim, or case, which directly
24
involves that client's legal rights and responsibil-
25
ities, except that this subparagraph shall not be
H.R. 3480-ih
6
1
construed to permit a staff attorney or any other
2
employee of a recipient to solicit a client, in viola-
3
tion of professional responsibilities, for the pur-
4
pose of making such representation possible; or
5
"(B) a governmental agency, a legislative
6
body or a committee thereof, or a member of such
7
a legislative body or committee formally requests
8
that an employee of a recipient testify or make
9
representations to such agency, legislative body,
10
committee, or member.'
11
LIMITATION ON CLASS ACTIONS
12
SEC. 5. Section 1006(d)(5) of the Legal Services Corpo-
13 ration Act (42 U.S.C. 2996e(d)(5)) is amended by adding at
14 the end thereof the following: "No class action suit may be
15 brought against the Federal Government or any State or
16 local government except in accordance with policies or regu-
17 lations adopted by the Board of the Corporation.".
18
LIABILITY FOR ATTORNEYS' FEES
19
SEC. 6. Section 1006(f) of the Legal Services Corpora-
20 tion Act (42 U.S.C. 2996c(f)) is amended to read as follows:,
21
"(f) If an action is commenced by the Corporation or by
22 a recipient and a final order is entered in favor of the defend-
23 ant and against the Corporation or a recipient's plaintiff, the
24 court shall, upon motion by the defendant and upon a finding
25 by the court that the action had no reasonable basis in law or
H.R. 3480-ih
7
1 fact, enter an order (which shall be appealable before being
2 made final) awarding reasonable costs and legal fees incurred
3 by the defendant in defense of the action, except when in
4 contravention of a State law, a rule of the court, or a statute
5 of general applicability. Any such costs and fees shall be di-
6 rectly paid by the Corporation.".
7
NEGOTIATION REQUIREMENT
8
SEC. 7. Section 1007(a) of the Legal Services Corpora-
9 tion Act (42 U.S.C. 2996f(a)), as amended by section 3(c) of
10 this Act, is further amended-
11
(1) in paragraph (9) by striking out "and" after
12
the semicolon;
13
(2) in paragraph (10) by striking out the period
14
and inserting in lieu thereof "; and"; and
15
(3) by adding at the end the following new
16
paragraph:
17
"(11) require recipients to attempt to negotiate a
18
settlement of controversies before filing suit in order to
19
prevent the persistent incitement of litigation and to
20
encourage the resolution of such controversies through
21
compromise and settlement rather than through litiga-
22
tion, except that nothing in this paragraph shall pre-
23
clude attorneys from immediately filing suit where the
24
circumstances of the case, as determined by the local
H.R. 3480-ih
8
1
program director, require immediate action to protect
2
the interests of a client.".
3
PRIVATE BAR INVOLVEMENT
4
SEC. 8. Section 1007(a) of the Legal Services Corpora-
5 tion Act, as amended by section 7 of this Act, is further
6 amended-
7
(1) in paragraph (10) by striking out "and" after
8
the semicolon;
9
(2) in paragraph (11) by striking out the period
10
and inserting in lieu thereof "; and"; and
11
(3) by adding at the end thereof the following:
12
"(12) in each fiscal year, to the extent feasible
13
and consistent with paragraph (3) of this subsection,
14
make available substantial amounts of funds to provide
15
the opportunity for legal assistance to be rendered to
16
eligible clients by private attorneys, except that the
17
Corporation shall issue regulations to provide that
18
compensation to private attorneys for rendering such
19
legal assistance shall not exceed reasonable costs and
20
expenses and the Corporation shall develop suitable
21
criteria for determining the amount of such reasonable
22
costs and expenses.".
H.R. 3480-ih
9
1
AWARDS OF ATTORNEYS' FEES
2
SEC. 9. (a) Section 1007(a) of the Legal Services Cor-
3 poration Act, as amended by sections 7 and 8 of this Act, is
4 further amended-
5
(1) in paragraph (11) by striking out "and" after
6
the semicolon;
7
(2) in paragraph (12) by striking out the period
8
and inserting in lieu thereof "; and"; and
9
(3) by adding at the end thereof the following:
10
"(13) insure that any recipient who receives an
11
award of attorneys' fees shall, notwithstanding any
12
other provision of law, transfer such fees to the Corpo-
13 -
ration, except that (A) no recipient shall be required to
14
transfer fees or other compensation received as a result
15
of a mandated court appointment, and (B) a recipient
16
may retain reasonable costs customarily allowed in liti-
17
gation against an unsuccessful party.".
18
(b) The amendment made by subsection (a)(3) shall
19 apply only to actions commenced after the date of enactment
20 of this Act.
21
ADDITIONAL RESTRICTIONS ON USE OF FUNDS
22
SEC. 10. Section 1007(b) of the Legal Services Corpo-
23 ration Act (42 U.S.C. 2996f(b)) is amended-
24
(1) by amending paragraph (6) to read as follows:
H.R. 3480-ih
10
1
"(6) to support or conduct training programs for
2
the purpose of advocating particular public policies or
3
encouraging political activities, labor or antilabor activ-
4
ities, boycotts, picketing, strikes, and demonstrations,
5
including the dissemination of information about such
6
policies or activities, except that this paragraph shall
7
not be construed to prohibit the training of attorneys or
8
paralegal personnel necessary to prepare them to pro-
9
vide adequate legal assistance to eligible clients;";
10
(2) by amending paragraph (8) to read as follows:
11
"(8)(A) to provide legal assistance with respect to
12
any proceeding or litigation relating to abortion unless
13
such abortion is necessary to save the life of the
14
mother, or (B) to support in whole or in part any legal
15
assistance activity of any attorney in connection with
16
any proceeding or litigation relating to abortion unless
17
such abortion is necessary to save the life of the
18
mother, except that nothing in this paragraph shall
19
prohibit the provision of legal advice to an eligible
20
client with respect to such client's legal rights and
21
responsibilities;";
22
(3) in paragraph (9) by striking out "or" after the
23
semicolon;
24
(4) in paragraph (10) by striking out the period
25
and inserting in lieu thereof a semicolon; and
H.R. 3480-ih
11
1
(5) by adding at the end thereof the following new
2
paragraphs:
3
"(11) to provide legal assistance for or on behalf
4
of any individual who is known to be an alien in the
5
United States in violation of the Immigration and Na-
6
tionality Act or any other law of the United States, or
7
convention or treaty to which the United States is a
8
party, relating to the immigration, exclusion, deporta-
9
tion, or expulsion of aliens; or
10
"(12) to provide legal assistance for any litigation
11
which seeks to adjudicate the legalization of
12
homosexuality.".
13
DOCUMENTATION OF ELIGIBILITY
14
SEC. 11. Section 1008 of the Legal Services Corpora-
15 tion Act (42 U.S.C. 2996g) is amended by adding at the end
16 thereof the following new subsection:
17
"(f) The Corporation shall require each recipient to
18 maintain documentation (1) demonstrating the eligibility of
19 each person to whom such recipient provides legal assistance,
20 and (2) of any activity referred to in subparagraph (A) or (B)
21 of section 1007(a) of this title. The Corporation shall periodi-
22 cally review such documentation, in a manner that protects
23 confidential client information, to assure compliance with this
24 subsection and shall include in each annual report prepared
H.R. 3480-ih
12
1 pursuant to subsection (c) of this section its findings with
2 respect to such compliance.".
3
FINANCING
4
SEC. 12. (a) Section 1010(a) of the Legal Services Cor-
5 poration Act (42 U.S.C. 2996i(a)) is amended by inserting
6 immediately after the second sentence the following new sen-
7 tence: "There are authorized to be appropriated for purposes
8 of carrying out the activities of the Corporation
9 $260,000,000 for the fiscal year 1982, and $260,000,000 for
10 the fiscal year 1983."
11
(b) Section 1010(d) of such Act is amended to read as
12 follows:
13
"(d) Not more than 7 percent of the amounts appropri-
14 ated pursuant to subsection (a) of this section for the fiscal
15 year 1982 and any fiscal year thereafter shall be available in
16 any such fiscal year for grants or contracts under section
17 1006(a)(3) of this title.".
18
TECHNICAL AMENDMENTS
19
SEC. 13. Section 1006(b) of the Legal Services Corpo-
20 ration Act (42 U.S.C. 2996e(b)) is amended-
21
(1) in paragraph (1)(A) by striking out "section
22
1011" and inserting in lieu thereof "paragraph (5) of
23
this subsection"; and
H.R. 3480-ih
13
1
(2) in paragraph (2) by striking out "the provi-
2
sions of section 1011" and inserting in lieu thereof
3
"paragraph (5). of this subsection".
97TH CONGRESS
HOUSE OF REPRESENTATIVES
}
{
REPORT
No. 97-97
1st Session
LEGAL SERVICES CORPORATION ACT AMENDMENTS OF
1981
MAY 19, 1981.-Committed to the Committee of the Whole House on the State of the
Union and ordered to be printed
Mr. KASTENMEIER, from the Committee on the Judiciary,
submitted the following
REPORT
together with
DISSENTING VIEWS
[To accompany H.R. 3480]
[Including cost estimate of the Congressional Budget Office]
The Committee on the Judiciary, to whom was referred the bill
(H.R. 3480) to amend the Legal Services Corporation Act to provide
authorization of appropriations for additional fiscal years, and for
other purposes, having considered the same, report favorably there-
on with an amendment and recommend that the bill as amended
do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu thereof
the following:
SHORT TITLE
SECTION 1. This Act may be cited as the "Legal Services Corporation Act Amend-
ments of 1981".
STATE ADVISORY COUNCILS
SEC. 2. Section 1004(f) of the Legal Services Corporation Act (42 U.S.C. 2996c(f)) is
amended to read as follows:
"(f) Within 90 days after the date of enactment of the Legal Services Corporation
Act Amendments of 1981, the Board shall request the Governor of each State to ap-
point a ten member advisory council for such State. A majority of the members of
(1)
*79-006 o
2
the advisory council shall be appointed, after recommendations have been received
from the State bar association, from among the attorneys admitted to practice in
the State, and the membership of the council shall be subject to annual reappoint-
ment. The other members of the council shall include two eligible clients and two
members of the general public from that State. If 90 days have elapsed after such the
Board shall appoint such a council. The advisory council shall be charged title and
request without such an advisory council being appointed by the Governor, with noti-
fying applicable rules, regulations, and guidelines promulgated pursuant to this to
the Corporation of any apparent violation of the provisions of this title. The
advisory council shall, at the same time, furnish a copy of the notification any
able time (but in no case less than 30 days) to reply to any allegation advi-
recipient affected thereby, and the Corporation shall allow such recipient contained a reason- in
the notification. The Corporation and recipients shall notify the relevant State their
sory employees. At least 60 days prior to the approval of any grant application the or Corpo- prior
councils promptly of any alleged violations of this title by recipients or
to entering into a contract or prior to the initiation of any other project, send notifi-
cation result of the grant, contract, or project. Notification shall and
ration thereof to the advisory council of any State in which legal assistance include a
shall announce publicly such grant, contract, or project and shall will be
specific for comments and recommendations thereon. The council violations and on a
provided description as a of the grant application or proposed contract or shall project be given a
request reasonable opportunity to review and comment on such alleged
such grants, contracts, and projects.".
QUALIFICATIONS OF RECIPIENTS
SEC. 3. Section 1006(a)(1) of the Legal Services Corporation Act (42 U.S.C.
2996(a)(1)) is amended to read as follows:
"(1) to provide financial assistance to and to make grants to and contracts
with-
"(A) qualified nonprofit organizations chartered under the laws of one of
the States for the sole purpose of furnishing legal assistance to eligible cli-
ents, the majority of the board of directors or other governing body of
which organization is comprised of attorneys who are admitted to practice
in one of the States and who are appointed to terms of office on such board
or body by the governing bodies of State, county, or municipal bar associ-
ations the membership of which represents a majority of the attorneys
practicing law in the locality in which the organization is to provide legal
assistance, and
"(B) private attorneys for the sole purpose of furnishing legal assistance
to eligible clients pursuant to the provisions of section 1007(a)(12);".
ENFORCEMENT AND SANCTIONS
SEC. 4. (a) Section 1006(b)(5) of the Legal Services Corporation Act (42 U.S.C.
2996(b)(5)) is amended by striking out the second sentence and inserting in lieu
thereof the following: "The Board, within 30 days after the date of enactment of the
Legal Services Corporation Act Amendments of 1981, shall issue regulations to pro-
vide for the enforcement of this title, which regulations shall include, among availa-
ble remedies, provisions for the immediate suspension of financial assistance under
this title, suspension of an employee of the Corporation or any employee of any re-
cipient by such recipient or by the President of the Corporation, and the reduction
or termination of such assistance or employment as deemed appropriate for the vio-
lation involved. Financial assistance under this title shall not be terminated or sus-
pended for a period of more than 30 days unless the recipient, grantee, or contractor
has been afforded reasonable notice and an opportunity for a fair hearing pursuant
to regulations promulgated by the Corporation.".
(b)(1) Section 1011 of the Legal Services Corporation Act (42 U.S.C. 2996j) is re-
pealed. (2) The amendment made by paragraph (1) shall not affect any proceeding pend-
ing on the date of enactment of this Act which is being conducted in accordance
with section 1011 of the Legal Services Corporation Act.
(c) Section 1007(a)(9) of such Act (42 U.S.C. 2996f(a)(9)) is amended to read as fol-
lows:
"(9) insure that every grantee, contractor, or person or entity receiving finan-
cial assistance under this title that files with the Corporation a timely applica-
tion for refunding is provided interim funding, pending the decision of the Cor-
poration on the application, sufficient to allow for the continuation of represen-
3
have been received
tation of clients on whose behalf litigation, negotiation, or other forms of repre-
admitted to practice in
sentation have been initiated; and".
to annual reappoint-
(d) Section 1006(b)(5) of such Act is amended in the first sentence by striking out
wo eligible clients and two
"(except as permitted by law in connection with such employee's own employment
have elapsed after such
situation)".
by the Governor, the
shall be charged with noti-
PROHIBITIONS ON LOBBYING
provisions of this title and
pursuant to this title. The
SEC. 5. (a) Section 1006(c) of the Legal Services Corporation Act (42 U.S.C.
of the notification to any
2996e(c)(2)) is amended to read as follows:
such recipient a reason-
"(c) The Corporation shall not itself participate in litigation unless the Corpora-
any allegation contained in
tion or a recipient of the Corporation is a party, or a recipient is representing an
the relevant State advi-
eligible client in litigation in which the interpretation of this title or a regulation
by recipients or their
client other than itself. The provisions of section 1913 of title 18, United States
promulgated under this title is an issue, and shall not participate on behalf of any
grant application or prior
other project, the Corpo-
Code, shall apply to all officers and employees of the Corporation.".
roject and shall send notifi-
(b) Section 1007(a)(5) of the Legal Services Corporation Act (42 U.S.C. 2996f(a)(5)) is
legal assistance will be
amended to read as follows:
Notification shall include a
"(5) insure that no funds made available to any recipient shall be used at any
contract or project and a
time, directly or indirectly, to attempt to influence any decision by a Federal,
council shall be given a
State, or local agency, to attempt to influence, directly or indirectly, through
alleged violations and on
publicity, propaganda, or otherwise, the introduction, passage, or defeat of any
legislation in the Congress of the United States, or in any State or local legisla-
tive body, or to attempt to influence State proposals by initiative petition,
except where-
"(A) legal assistance is provided by an employee of a recipient to an eligi-
ble client on a particular application, claim, or case, which directly involves
orporation Act (42 U.S.C.
that client's legal rights and responsibilities, except that this subparagraph
shall not be construed to permit a staff attorney or any other employee of a
grants to and contracts
recipient to solicit a client, in violation of professional responsibilities, for
under the laws of one of
the purpose of making such representation possible; or
"(B) a governmental agency, a legislative body or a committee thereof, or
assistance to eligible cli-
a member of such a legislative body or committee formally requests that an
other governing body of
ho are admitted to practice
employee of a recipient testify or make representations to such agency, leg-
islative body, committee, or member, in which case the employee may re-
of office on such board
spond only to the agency, legislative body, committee, or member making
or municipal bar associ-
the request.".
majority of the attorneys
is to provide legal
LIMITATION ON CLASS ACTIONS
furnishing legal assistance
1007(a)(12);".
SEC. 6. Section 1006(d)(5) of the Legal Services Corporation Act (42 U.S.C.
2996e(d)(5)) is amended by adding at the end thereof the following: "No class action
suit may be brought against the Federal Government or any State or local govern-
ment except in accordance with policies or regulations adopted by the Board."
Corporation Act (42 U.S.C.
and inserting in lieu
LIABILITY FOR ATTORNEYS' FEES
he date of enactment of the
issue regulations to pro-
SEC. 7. Section 1006(f) of the Legal Services Corporation Act (42 U.S.C. 2996c(f))
shall include, among availa-
is amended to read as follows:
financial assistance under
"(f) If an action is commenced by the Corporation or by a recipient and a final
or any employee of any re-
order is entered in favor of the defendant and against the Corporation or a recipi-
poration, and the reduction
ent's plaintiff, the court shall, upon motion by the defendant and upon a finding by
appropriate for the vio-
the court that the action had no reasonable basis in law or fact, enter an order
not be terminated or sus-
(which shall be appealable before being made final) awarding reasonable costs and
grantee, or contractor
legal fees incurred by the defendant in defense of the action, except when in contra-
for a fair hearing pursuant
vention of a State law, a rule of the court, or a statute of general applicability. Any
such costs and fees shall be directly paid by the Corporation.".
Act (42 U.S.C. 2996j) is re-
NEGOTIATION REQUIREMENT
affect any proceeding pend-
conducted in accordance
SEC. 8. Section 1007(a) of the Legal Services Corporation Act (42 U.S.C. 2996f(a)),
as amended by section 4(c) of this Act, is further amended-
is amended to read as fol-
(1) in paragraph (9) by striking out "and" after the semicolon;
(2) in paragraph (10) by striking out the period and inserting in lieu thereof";
or entity receiving finan-
and"; and
orporation a timely applica-
(3) by adding at the end the following new paragraph:
the decision of the Cor-
"(11) require recipients to attempt to negotiate a settlement of controversies
he continuation of represen-
before filing suit in order to prevent the persistent incitement of litigation and
4
to encourage the resolution of such controversies through compromise and set-
tlement rather than through litigation, except that nothing in this paragraph
shall preclude attorneys from immediately filing suit where the circumstances
of the case, as determined by the local program director, require immediate
action to protect the interests of a client.".
PRIVATE BAR INVOLVEMENT
SEC. 9. Section 1007(a) of the Legal Services Corporation Act, as amended by sec-
tion 8 of this Act, is further amended—
(1) in paragraph (10) by striking out "and" after the semicolon;
(2) in paragraph (11) by striking out the period and inserting in lieu thereof
and"; and
(3) by adding at the end thereof the following:
"(12) in each fiscal year, to the extent feasible and consistent with paragraph
(3) of this subsection, make available substantial amounts of funds to provide
the opportunity for legal assistance to be rendered to eligible clients by private
attorneys, except that the Corporation shall issue regulations to provide that
compensation to private attorneys for rendering such legal assistance shall not
exceed reasonable costs and expenses and the Corporation shall develop suitable
criteria for determining the amount of such reasonable costs and expenses.".
AWARDS OF ATTORNEYS' FEES
SEC. 10. (a) Section 1007(a) of Legal Services Corporation Act, as amended by sec-
tions 8 and 9 of this Act, is further amended-
(1) in paragraph (11) by striking out "and" after the semicolon;
(2) in paragraph (12) by striking out the period and inserting in lieu thereof
and"; and
(3) by adding at the end thereof the following:
"(13) insure that any recipient who receives an award of attorneys' fees shall,
notwithstanding any other provision of law, transfer such fees to the Corpora-
tion, except that (A) no recipient shall be required to transfer fees or other com-
pensation received as a result of a mandated court appointment, and (B) a re-
cipient may retain reasonable costs customarily allowed in litigation against an
unsuccessful party.".
(b) The amendment made by subsection (a)(3) shall apply only to actions com-
menced after the date of enactment of this Act.
ADDITIONAL RESTRICTIONS ON USE OF FUNDS
SEC. 11. Section 1007(b) of the Legal Services Corporation Act (42 U.S.C. 2996f(b))
is amended-
(1) by amending paragraph (6) to read as follows:
"(6) to support or conduct training programs for the purpose of advocating
particular public policies or encouraging political activities, labor or antilabor
activities, boycotts, picketing, strikes, and demonstrations, including the dis-
semination of information about such policies or activities, except that this
paragraph shall not be construed to prohibit the training of attorneys or parale-
gal personnel necessary to prepare them to provide adequate legal assistance to
eligible clients;";
(2) by amending paragraph (8) to read as follows:
"(8)(A) to provide legal assistance with respect to any proceeding or litigation
relating to abortion unless such abortion is necessary to save the life of the
mother, or (B) to support in whole or in part anv legal assistance activity of any
attorney in connection with any proceeding or litigation relating to abortion
unless such abortion is necessary to save the life of the mother, except that
nothing in this paragraph shall prohibit the provision of legal advice to an eligi-
ble client with respect to such client's legal rights and responsibilities,";
(3) in paragraph (9) by striking out "or" after the semicolon;
(4) in paragraph (10) by striking out the period and inserting in lieu thereof a
semicolon; and
(5) by adding at the end thereof the followng new paragraphs:
"(11) to provide legal assistance for or on behalf of any individual who is
known to be an alien in the United States in violation of the Immigration and
Nationality Act or any other law of the United States, or convention or treaty
to which the United States is a party, relating to the immigration, exclusion,
deportation, or expulsion of aliens; or
5
"(12). to provide legal assistance for any litigation which seeks to adjudicate
through compromise and set-
the legalization of homosexuality.".
nothing in this paragraph
where the circumstances
DOCUMENTATION OF ELIGIBILITY
director, require immediate
SEC. 12. Section 1008 of the Legal Services Corporation Act (42 U.S.C. 2996g) is
amended by adding at the end thereof the following new subsection:
"(f) The Corporation shall require each recipient to maintain documentation (1)
demonstrating the eligibility of each person to whom such recipient provides legal
Act, as amended by sec-
assistance, and (2) of any activity referred to in subparagraph (A) or (B) of section
1007(a)(5) of this title. The Corporation shall periodically review such documenta-
the
semicolon;
tion, in a manner that protects confidential client information, to assure compliance
inserting in lieu thereof";
with this subsection and shall include in each annual report prepared pursuant to
subsection (c) of this section its findings with respect to such compliance.".
consistent with paragraph
FINANCING
amounts of funds to provide
to eligible clients by private
SEC. 13. (a) Section 1010(a) of the Legal Services Corporation Act (42 U.S.C.
regulations to provide that
2996i(a)) is amended by inserting immediately after the second sentence the follow-
legal assistance shall not
shall develop suitable
ing new sentence: "There are authorized to be appropriated for purposes of carrying
out the activities of the Corporation $260,000,000 for the fiscal year 1982, and
costs
and
expenses.".
$260,000,000 for the fiscal year 1983.".
(b) Section 1010(d) of such Act is amended to read as follows:
"(d) Not more than seven percent of the amounts appropriated pursuant to sub-
section (a) of this section for the fiscal year 1982 and any fiscal year thereafter shall
Act, as amended by sec-
be available in any such fiscal year for grants or contracts under section 1006(a)(3)
of this title.".
the
semicolon;
nd inserting in lieu thereof"
TECHNICAL AMENDMENTS
SEC. 14. Section 1006(b) of the Legal Services Corporation Act (42 U.S.C. 2996e(b))
of attorneys' fees shall,
is amended-
such fees to the Corpora-
(1) in paragraph (1)(A)( by striking out "section 1011" and inserting in lieu
to transfer fees or other com-
thereof paragraph (5) of this subsection"; and
appointment, and (B) a re-
(2) in paragraph (2) by striking out "the provisions of section 1011" and in-
llowed in litigation against an
serting in lieu thereof "regulations promulgated pursuant to the last sentence
of paragraph (5) of this subsection".
apply only to actions com-
PURPOSE OF THE BILL
FUNDS
The primary purpose of H.R. 3480 is to extend the authorization
Act (42 U.S.C. 2996f(b))
for appropriations for the Legal Services Corporation for two addi-
tional fiscal years (1982 and 1983) at the level of $260 million for
for the purpose of advocating
each year. The Legal Services Corportion was established by Con-
activities, labor or antilabor
gress in 1974 with the enactment of the Legal Services Corporation
nstrations, including the dis-
Act of 1974 (Public Law 93-355). This law provided the Corporation
activities, except that this
with a three-year authorization period covering fiscal years 1975-
raining of attorneys or parale-
adequate legal assistance to
77. In 1977, the Legal Services Corporation Act was amended by
Public Law 95-222 to extend the authorization for appropriations
for the Corporation for three additional fiscal years 1978-80.
to any proceeding or litigation
During fiscal year 1981 the Corporation has been funded at $321.3
essary to save the life of the
legal assistance activity of any
million through a continuing appropriation (Public Law 96-536).
litigation relating to abortion
The Legal Services Corporation has requested a three-year exten-
of the mother, except that
sion of authorization for appropriation at levels of $400 million
of legal advice to an eligi-
(fiscal year 1982), $450 million (fiscal year 1983), and $500 million
and
responsibilities;";
(fiscal year 1984). All previous extensions were for three-year peri-
semicolon:
and inserting in lieu thereof a
ods.
The secondary purpose of H.R. 3480 is to amend the Legal Serv-
paragraphs:
ices Corporation Act in several substantive ways to respond to
half of any individual who is
lation of the Immigration and
many of the issues which were raised during the seven days of
States, or convention or treaty
reauthorization/oversight hearings (beginning on March 17 and
to the immigration, exclusion,
concluding on April 7) and during the 96th Congress. Several sub-
6
stantive amendments are incorporated in H.R. 3480, including addi-
tional restrictions on class actions, lobbying, representation in
abortion, homosexual rights and alien matters, and strikes by em-
ployees of local programs. In addition the private bar is offered an
increased role in the delivery of legal services and in the gover-
nance of nonprofit recipient organizations through relevant bar as-
sociations. The Legal Services Corporation and its recipients are
made more liable for attorneys fees if they lose cases, while the re-
cipients are generally not allowed such fees. The Corporation is
given increased sanctions and streamlined proceudres to enforce
the Legal Services Corporation Act.
Although many substantive restrictions were added to the Legal
Services Corporation Act by H.R. 3480, it is fair to say that most of
the witnesses at the extensive hearings recommended current or
increased funding levels and few, if any, additional restrictions.
Continuation of the Legal Services Corporation has been supported
by over 60 national organizations, 200 bar groups, and several thou-
sand persons-including judges, public officials, and clients.
BACKGROUND
A. HISTORY OF THE LEGAL SERVICES CORPORATION
In 1974, Congress passed the Legal Services Corporation Act of
1974 (Public Law 93-355), which created a private, nonmembership,
non-profit corporation whose main purpose is to provide financial
support to civil legal services programs for assistance to those per-
sons unable to afford legal assistance in the nation. The Corpora-
tion is not a department, agency, or instrumentality of the Federal
Government and was established to be independent of the Execu-
tive Branch SO that legal assistance would be insulated from parti-
san pressures and would be delivered based on independent profes-
sional judgment.
The program was previously carried out by the Office of Econom-
ic Opportunity (OEO) and later by the Community Services Admin-
istration, which was part of the Executive Branch. In 1965, OEO
established the first national legal services program for the poor.
Prior to that time legal services depended on the generosity and at-
titudes of the local private bar and the local governments.
The first legal aid society was established in New York City in
1876. Slowly other societies were formed, primarily in urban set-
tings. However as the number of poor persons increased and the
legal problems grew more complex, it was recognized that legal aid
societies could not meet the needs of the poor, nor was there a con-
sistent source of legal assistance nationwide.
The legal services program established through OEO in 1965 was
the first effort to improve access to justice nationwide, and the pro-
gram demonstrated its value to the disadvantaged. However, in the
early 1970's politics crippled the program and froze its budgets. For
five years, the level of funding remained at $71 million, as numer-
ous projects were closed, and inflationary costs of 30 percent deci-
mated the projects. The American Bar Association, the National
Legal Aid and Defender Association, clients, and others urged Con-
gress to remedy the situation by creating an independent corpora-
tion. Through the efforts of many, and strong bi-partisan support,
7
3480, including addi-
the Legal Services Corporation Act was passed in 1974. The Corpo-
ration's Board of Directors was installed on July 14, 1975. The Cor-
representation in
and strikes by em-
poration assumed full responsibility for the program from the Com-
munity Services Administration in October 1975.
private bar is offered an
and in the gover-
B. STRUCTURE OF THE LEGAL SERVICES CORPORATION AND ITS
through relevant bar as-
RECIPIENTS
and its recipients are
lose cases, while the re-
The Corporation is a private corporation incorporated in the Dis-
fees. The Corporation is
trict of Columbia. It is governed by an eleven-member Board of Di-
proceudres to enforce
rectors appointed by the President with the advice and consent of
the Senate. No more than six members may be from the same po-
were added to the Legal
litical party, and none may be a Federal government employee. A
fair to say that most of
majority of the Board must be members of the bar of the highest
recommended current or
court, and at least two must be eligible clients. The Board is re-
additional restrictions.
quired to be generally representative of the organized bar, attor-
has been supported
neys providing legal assistance to eligible clients, and the general
groups, and several thou-
public, as well.
and
clients.
All present directors are noted as follows:
1. F. William McCalpin, Esq. Chairman (St. Louis, Missouri).
2. Steven L. Engelberg, Esq. (Washington, D.C.).
3. Cecelia D. Esquer, Esq. (Phoenix, Arizona).
CORPORATION
4. Robert J. Kutak, Esq. (Omaha, Nebraska).
5. Michael Kantor, Esq. (Los Angeles, California).
Corporation Act of
6. Hillary Rodham, Esq. (Little Rock, Ark.).
private, nonmembership,
7. Revius P. Ortique, Jr., Esq. (New Orleans, Louisiana).
is to provide financial
8. Howard R. Sacks, Esq. (West Hartford, Connecticut).
assistance to those per-
9. Ramona Shump (client) (Topeka, Kansas).
the nation. The Corpora-
10. Richard Trudell, Esq. (Oakland, California).
umentality of the Federal
11. Josephine Worthy (client) (Holyoke, Massachusetts).
ndependent of the Execu-
The administration of the Corporation is directed by the Presi-
be insulated from parti-
dent of the Corporation, Dan J. Bradley. The first president of the
on independent profes-
Corporation was Mr. Thomas Ehrlich, formerly the Dean of the
Stanford University Law School, who resigned the presidency in
by the Office of Econom-
1979.
mmunity Services Admin-
The Corporation has its headquarters in the District of Columbia,
Branch. In 1965, OEO
and nine regional offices. These offices are located in Boston, Mas-
program for the poor.
sachusetts; New York City, New York; Philadelphia, Pennsylvania;
on the generosity and at-
Chicago, Illinois; Atlanta, Georgia; Denver, Colorado; San Francis-
governments.
co, California; Rosslyn, Virginia; and Seattle, Washington. The
in New York City in
total staff of the Corporation is 307 (210 in Washington, D.C. and
primarily in urban set-
97 in the regional offices). The officers and employees of the Corpo-
ersons increased and the
ration are not officers or employees of the Federal Government.
recognized that legal aid
Approximately two percent of the total appropriations are used for
nor was there a con-
central administration. More than 90 percent goes directly to the
field programs. The balance is allocated for activities that support
through OEO in 1965 was
the field.
nationwide, and the pro-
The Corporation does not directly represent clients. Rather, it
vantaged. However, in the
provides funds to local programs to support their provision of legal
and froze its budgets. For
services. At the beginning of fiscal year 1981, there were 323 legal
at $71 million, as numer-
services programs throughout the 50 States, the Virgin Islands, the
costs of 30 percent deci-
District of Columbia, Puerto Rico and Micronesia. The 323 pro-
Association, the National
grams include 290 basic field programs (including 29 migrant com-
and others urged Con-
ponents and 12 Native American components), 3 migrant programs,
an independent corpora-
8 Native American programs, 5 state support programs, and '17 na-
bi-partisan support,
8
tional support centers. The support centers provide specialized
legal assistance to eligible clients and to programs in their repre-
sentation of clients. Some of the support centers concentrate on
areas of law that particularly affect the poor, such as welfare,
health and housing. Others specialize in laws affecting certain
groups of poor people: migrants, Native Americans and the elderly.
Local programs set their own client eligibility standards within
guidelines established by the Corporation. Those guidelines set
maximum eligibility at 125 percent of the poverty level established
by the Office of Management and Budget. (As of May 4, 1981, maxi-
mum eligibility for an individual was $5,388 and $10,563 for a
family of four).
Programs provide legal representation and counseling in a wide
range of civil matters. They do not provide criminal representation.
Most of the legal problems of eligible clients fall into four broad
categories: family law; administrative benefits, including medicaid,
AFDC, and SSI; consumer law; and housing law. Approximately 15
percent of the cases are actually litigated. Approximately 85 per-
cent are resolved through advice, negotiation, consultation and
other out-of-court mechanisms.
Local programs are currently staffed by some 6,200 full-time at-
torneys, 2,800 paralegal assistants, and 7,000 support persons.
There are 1,450 neighborhood offices in 3,106 counties. Because
none of the programs have sufficient resources to meet the needs of
all these eligible for legal assistance, the Legal Services Corpora-
tion Act and the Corporation's regulations require each program to
set its own priorities for service based on an assessment of client
needs and available resources in the local community. Reliance on
locally determined policies, rather than nationally set priorities,
has been a major reason for the success of the program.
Each program which is funded by the Corporation is termed a
"recipient," and each recipient must be governed by a locally se-
lected board. The Legal Services Corporation Act requires that at
least 60 percent of the governing board be a member of the bar of a
State in which legal services is to be provided, and that at least
one-third of the board be composed of persons who are, when se-
lected, eligible clients who may also be representatives of associ-
ations or organizations of eligible clients. The governing body must
reasonably reflect the interests and characteristics of the eligible
clients in the area to be served.
During 1980 the private bar increased its role in the delivery of
legal services. Ninety-six of the programs had a pro bono compo-
nent; 64 had contracts with private attorneys; 7 had supplemental
judicare units; and 10 programs were primarily judicare. Also
$500,000 was set aside to encourage a 50-50 cash match by the
local bar in developing more pro bono programs.
C. DELIVERY OF LEGAL SERVICES
The present national legal services program is basically a locally
directed program. The Legal Services Corporation awards grants
directly to independent non-profit organizations which are locally
controlled grantees governed by a board of directors, of which at
least 60 percent are local attorneys and at least one-third are low
income persons who are eligible for legal assistance. These pro-
9
provide specialized
grams, in consultation with the client community, set priorities re-
rograms in their repre-
garding the types of cases which they will handle. It is impossible
centers concentrate on
for them to handle every case referred to them.
poor, such as welfare,
Of the 1.5 million matters handled by legal services programs in
laws affecting certain
fiscal year 1980, only 15 percent resulted in litigation. The other
ericans and the elderly.
matters were handled outside the courtroom through counseling,
tibility standards within
negotiation and other means. The representation provided to poor
Those guidelines set
persons was in a variety of catgegories of cases:
poverty level established
Family, made up 30 percent, consisting of adoption, custody, di-
As of May 4, 1981, maxi-
vorce, support, parental rights, spouse abuse and family-related
and $10,563 for a
matters.
Income maintenance and housing, each made up between 17 and
nd counseling in a wide
18 percent.
criminal representation.
Consumer, made up 14 percent, consisting of contracts, warran-
fall into four broad
ties, credit matters, debt collection and sales practices, as well as
including medicaid,
public utilities and energy related issues.
law. Approximately 15
Education, juveniles, health, individual rights, and employment,
Approximately 85 per-
constituted 9.4 percent.
consultation and
Miscellaneous, such as torts, tribal matters, wills, auto licenses,
made up 11.7 percent.
some 6,200 full-time at-
Only about 2/10 of 1 percent of these cases were "class actions."
7,000 support persons.
It is estimated, based on the 1970 Census, that there are 30 mil-
3,106 counties. Because
lion poor persons eligible for free legal assistance. The 1980 Census
to meet the needs of
and the present unemployment rate may increase this number.
Legal Services Corpora-
LSC is a very efficient program spending more that 90 percent of
require each program to
its resources on the direct provision of legal services to the 323 pro-
an assessment of client
grams. Only approximately 3 percent is spent on administration
community. Reliance on
and monitoring.
nationally set priorities,
the
program.
STATEMENT
Corporation is termed a
overned by a locally se-
The committee has exercised close oversight of the Legal Services
Act requires that at
Corporation since the Board of the Corporation was installed. Sev-
a member of the bar of a
eral days of hearings have been held by the subcommittee on
vided, and that at least
Courts, Civil Liberties, and the Administration of Justice over the
who are, when se-
course of the 94th, 95th, 96th, and 97th Congresses. Board meetings
representatives of associ-
and regulations have been closely monitored, as have the investiga-
The governing body must
tions and studies of the General Accounting Office.
acteristics of the eligible
The Legal Services Corporation through its officers and staff
have worked cooperatively with the committee to improve the oper-
role in the delivery of
ations of the Corporation. For example, after a hearing on May 22,
had a pro bono compo-
1978, concerning the expansion process, the Corporation modified
7 had supplemental
its expansion procedures to expand notice to interested persons and
primarily judicare. Also
bar groups, as recommended by subcommittee members.
cash match by the
Another area in which the Corporation has been encouraged to
change its procedures is in the monitoring of legislative advocacy
by its recipients. Therefore, the subcommittee reviewed the issue,
consulted with the Corporation, and conducted an investigative trip
to California to look into specific complaints. As a result the sub-
is basically a locally
committee encouraged the Corporation to tighten the reporting re-
rporation awards grants
quirements of its recipients, to centralize the information on each
which are locally
program's legislative activities, and to develop uniform guidelines
of directors, of which at
for all recipients' activities in the legislative field. President Brad-
least one-third are low
ley expressed his willingness to do so, and the Board of Dirèctors
assistance. These pro-
has modified the regulation.
10
The committee believes that the Legal Services Corporation's
continuation is necessary to the delivery of justice to this nation's
poor persons. Administration proposals to eliminate the Corpora-
tion and rely on the block grant approach and the private bar are
considered unfeasible. Several witnesses, including the American
Bar Association, the Honorable Harold Tyler, and the Attorney
General of Maryland, Honorable Stephen Sachs, testified about the
defects in the above approach.
The Committee strongly believes that the Corporation should be
continued as the primary vehicle for delivery of legal services to
the nation's poor. Reluctantly, but in light of the needs for fiscal
restraint, it has reduced its funding level 20 percent (despite an in-
flation rate exceeding 10 percent) from the fiscal year 1981 level of
$321.3 million, resulting in a 25 percent savings based on the previ-
ous Administration's Budget Request. Although this will result in
diminished services and a reduction from "minimum" access (2 at-
torneys per 10,000 poor persons), it is expected that the cutbacks
will be resolved by the Board in an equitable way, so that no seg-
ment will be denied some access to legal services.
For comparison purposes, the following table indicates past au-
thorization and appropriation levels for LSC.
[In millions of dollars]
Authorization
Appropriation
Fiscal year:
$90
1975
100
1 $116.0
1976
1977 2
(3)
125.0
205
205.0
1978
1979
(³)
270.0
1980 4
(3)
300.0
321.3
1981
1 Since the Corporation Board first met in July of 1975, and the fiscal year was changed from July 1 to October 1 as of 1976, the Corporation
received funding for fiscal year 1976 and the 90-day transition period (July 1, 1976-Sept. 30, 1976).
2 Public Law 93-355 covered fiscal years 1975-1977.
3 Such sums as may be necessary.
4 Public Law 93-222 covered fiscal years 1978-1980.
The Committee has left existing restrictions on the Corporation
and recipients in the Act, but has also added new ones mentioned
previously. A detailed statement is contained in the section by sec-
tion analysis.
ESTIMATED COST OF THE LEGISLATION
The Committee has voted to extend the Legal Services Corpora-
tion for two more fiscal years, and to authorize funding of $260 mil-
lion for each such year. Therefore, the estimated cost of this legis-
lation is $260 million for fiscal year 1982 and $260 million for fiscal
year 1983.
INFLATION IMPACT STATEMENT
The bill will have no foreseeable inflationary impact on prices or
costs in the operation of the national economy.
11
Services Corporation's
OVERSIGHT
justice to this nation's
eliminate the Corpora-
Oversight of the Legal Services Corporation is the responsibility
and the private bar are
of the Committee on the Judiciary, which has monitored the Corpo-
ncluding the American
ration since its inception in July 1975. Several days of hearings
and the Attorney
have been held during each Congress. The Committee finds that
testified about the
the Corporation is performing efficiently and effectively, and has
an impressive record of accomplishments.
Corporation should be
of legal services to
STATEMENT OF THE COMMITTEE ON GOVERNMENT OPERATIONS
of the needs for fiscal
percent (despite an in-
No statement has been received on the legislation from the
fiscal year 1981 level of
House Committee on Government Operations.
based on the previ-
NEW BUDGET AUTHORITY
ough this will result in
minimum" access (2 at-
The bill creates no new budget authority for the Legal Services
that the cutbacks
Corporation.
way, so that no seg-
STATEMENT OF THE CONGRESSIONAL BUDGET OFFICE
indicates past au-
Pursuant to clause 7, rule XIII of the Rules of the House of Rep-
resentatives, and section 403 of the Congressional Budget Act of
1974, the following is the cost estimate on H.R. 3480 prepared by
the Congressional Budget Office.
U.S. CONGRESS,
Authorization
Appropriation
CONGRESSIONAL BUDGET OFFICE,
Washington, D.C., May 15, 1981.
Hon. PETER W. RODINO, Jr.
$90
Chairman, Committee on the Judiciary, U.S. House of Representa-
100
$116.0
(3)
125.0
tives, Washington, D.C.
205
205.0
DEAR MR. CHAIRMAN: Pursuant to Section 403 of the Congres-
(³)
270.0
sional Budget Act of 1974, the Congressional Budget Office has pre-
(³)
300.0
pared the attached cost estimate for H.R. 3480, the Legal Services
321.3
Corporation Act Amendments of 1981.
July 1 to October 1 as of 1976, the Corporation
Should the Committee so desire, we would be pleased to provide
1976).
further details on this estimate.
Sincerely,
RAYMOND C. SCHEPPACH
on the Corporation
(For Alice M. Rivlin, Director).
new ones mentioned
in the section by sec-
CONGRESSIONAL BUDGET OFFICE-COST ESTIMATE
1. Bill number: H.R. 3480.
2. Bill title: Legal services Corporation Act Amendments of 1981.
3. Bill status: As ordered reported by the House Committee on
Legal Services Corpora-
the Judiciary, May 13, 1981.
funding of $260 mil-
4. Bill purpose: The bill authorizes the annual appropriation of
imated cost of this legis-
$260 million for fiscal years 1982 and 1983 for the Legal Services
$260 million for fiscal
Corporation. In addition, the bill prohibits the use of funds for lob-
bying, filing of class action suits against the government, and
amends the enforcement and sanctions provisions of the author-
izing legislation.
The level authorized in the bill for 1982 is $61 million less than
impact on prices or
the $321 million appropriated for fiscal year 1981. The President
has requested no funding for Legal Services in fiscal year 1982.
12
5. Cost estimate:
[By fiscal years, in millions of dollars]
1982
1983
1984
1985
1986
Authorization level
260
260
Estimated outlays
224
260
36
Including outlays from 1981 and prior years' budget authority
appropriated to date, total outlays for the Legal Services Corpora-
tion will be $269 million in 1982, assuming appropriation of the au-
thorized amounts.
The costs of this bill fall within budget function 750.
6. Basis of estimate: The estimate assumes that the amounts au-
thorized in fiscal years 1982 and 1983 will be appropriated. The es-
timate of annual outlays is based on an analysis of historical
spending patterns.
7. Estimate comparison: None.
8. Previous CBO estimate: None.
9. Estimate prepared by: Jeffrey W. Nitta.
10. Estimate approved by:
C. G. NUCKOLS
(For James L. Blum,
Assistant Director for Budget Analysis).
COMMITTEE VOTE
On May 13, 1981, H.R. 3480 was reported favorably, as amended,
by the Committee on the Judiciary, by a recorded vote, 22-6, with
17 members being present.
SECTION-BY-SECTION ANALYSIS
SECTION 1. SHORT TITLE
The short title is "Legal Services Corporation Act Amendments
of 1981".
SECTION 2. STATE ADVISORY COUNCILS
State advisory councils are mandated, restructured, and given
additional powers and responsibilities to review grant and contract
applications and alleged violations by programs. The Governor of
each State has appointment powers, but if he/she fails to act
within a specified time, the Legal services Corporation must act to
appoint such councils. Currently, State advisory councils are discre-
tionary, and not all Governors have chosen to exercise this authori-
ty. The Committee bill revises this section of the current law to
mandate their existence and to provide them with increased
powers and responsibilities.
13
SECTION 3. QUALIFICATIONS OF RECIPIENTS
All recipient organizations providing legal services would have to
be non-profit organized solely for the purpose of providing legal as-
sistance to eligible clients, and would have to have 60 percent at-
torneys on their local boards as under section 1007(c) of the current
1983
1984
1985
1986
law, and would have to have a majority of the board appointed by
the relevant bar associations in the service area, according to the
260
Committee bill. Those bar associations which represent a majority
260
36
of the attorneys in the service area would be able to appoint a ma-
jority of the board. The Corporation would develop regulations on
years' budget authority
this procedure, and revise the current regulation. In determining
Legal Services Corpora-
the majority bar association(s) the Corporation could decide that if
no one bar association represented the majority of attorneys in
appropriation of the au-
that service area (eg. in a multi-county service area) that several
bar associations (eg., one from each county) could collectively ap-
unction
750.
that the amounts au-
point the majority of the board. State bars would also likely play a
role in the appointment process. This new language would not
be appropriated. The es-
analysis of historical
affect the appointment of clients or non-lawyers to these boards.
Nor would it prevent the minority bar associations (eg., women's
bars) from appointing some of the additional attorneys on the
board. All members of the board should generally be supportive of
legal services, and should be reflective of the interests of the eligi-
ble clients in the service area. Procedures would have to be devel-
oped to prevent conflicts of interest relating to board members.
C.
G.
NUCKOLS
For James L. Blum,
SECTION 4. ENFORCEMENT AND SANCTIONS
for Budget Analysis).
Under section 4(a) enforcement of the Legal services Corporation
Act is strengthened by an amendment providing new sanctions,
favorably, as amended,
(e.g., suspension of an employee of a local program by the President
recorded vote, 22-6, with
of the Legal Services Corporation), for violations of the Act.
Section 4(b)(1) of the H.S. 3480 repeals Section 1011 of the Act.
Section 1011 provides a recipient with notice and an opportunity
for an administrative hearing. Section 4(a) retains such procedures
ALYSIS
only for termination or suspension of a recipient but provides no
prior hearing for a denial of an application for refunding. While an
application for refunding is pending, section 4(c) provides that the
oration Act Amendments
Corporation should provide interim funding sufficient to allow for
the continuation of representation of clients on whose behalf litiga-
tion, negotiation, or other forms of representation have been initi-
ated.
COUNCILS
Section 4(d) removes the right of employees of legal services re-
restructured, and given
cipients to strike on their jobs.
review grant and contract
"The Corporation shall ensure that no employee of the Corpora-
rograms. The Governor of
tion or of any recipient while carrying out legal assistance activity
if he/she fails to act
under this title, engage in or encourage others to engage in, any
Corporation must act to
public demonstration, picket, boycott, or strike."
dvisory councils are discre-
Now, the effect of striking the parenthetical expression is to
to exercise this authori-
eliminate the right of Legal Services Corporation employees to
of the current law to
strike. This amendment is not intended to prevent Legal Services
them with increased
Corporation employees from unionizing or from bargaining collec-
tively. But, if such leads to a disruption of services to the poor by a
strike, that program or some of its employees will be jeopardizing
the funding of the program or possibly their own employment.
14
The language reads that the "Corporation shall ensure that no
employee engages in" a strike. The Corporation would be expected
to work out, through rules and regulations, some alternative to the
strike which would not permit a disruption of services to the poor.
For example, an agreement with a union to submit to arbitration
when negotiations have broken down.
There are approximately 323 programs around the country
funded by the Legal Services Corporation, and of these programs
sixty-five to seventy have already been unionized, with numerous
other programs involved in various stages of labor organizing. This
unionization has occurred over the last two years and there does
seem to be a trend toward the unionization of programs, both cleri-
cal and attorneys.
In 1979, the investigative staff of the Appropriations Committee
conducted an investigation of the Legal Services Corporation and
its programs and made the following observations:
The investigative staff was told the impact of unioniza-
tion resulted in an estimated 15-20 percent increase in sal-
aries in the first year of organization of a program. One
program immediately cut staff by 23 percent, with a corre-
sponding curtailment of activities. There have been slow-
downs and strikes; all of the employees of the large New
York City program were out for a week in November,
1977, due to an impasse in labor, negotiations. The clerical
staff of a California program were on strike for nine and a
half weeks beginning on March 6, 1978, and the regional
office of LSC in New York City was picketed by employees
of a program with signs and placards in November, 1978.
A four-person union formed in one of the national support
centers engaged in an unsuccessful campaign to oust the
project director and then went on strike, which was finally
resolved in the early summer of 1978 with the termination
of their employment.
Since November, 1975, there have been nine strikes. The largest
Legal Services Corporation recipient of federal funds is a New
York City program, and last year it was involved in an eleven
week strike by its attorneys. Legal Services to the poor was practi-
cally nonexistent in this area during the strike. When the strike
occurred, 32,000 cases were pending and for eleven weeks approxi-
mately 200 cases a day had nowhere to go.
No one doubts that unions can have a beneficial effect by keep-
ing management alert to good practices, but there is also a definite
erosion in the working relationship and rapport between manage-
ment and staff. Strikes within the legal services program tend to
polarize the people involved, with the loser oftentimes being the
poor. Such program managers are tied up for weeks in extended
negotiations, thereby preventing them from attending to normal
services to the poor.
SECTION 5. PROHIBITIONS ON LOBBYING
Under section 5(a) Corporation employees and officers are prohib-
ited from lobbying and placed under the anti-lobbying provision of
Section 1913 of title 18, U.S.C., which also provides criminal penal-
15
shall ensure that no
ties for violation of its provisions. Sec. 5(b) adds further restrictions
would be expected
on employees of recipients. Employees of recipient programs are
some alternative to the
also prohibited from lobbying unless their contact with the legisla-
of services to the poor.
ture is related to a "particular application, claim, or case, which
to submit to arbitration
directly involves that particular client's legal rights," unless a gov-
ernmental agency, legislative body, legislative committee, or a
around the country
member of such committee formally requests that the recipient em-
and of these programs
ployee testify or make representations to such agency or body.
ionized, with numerous
Such testimony and representations can only be made to the re-
of labor organizing. This
questor.
years and there does
H.R. 3480 modifies current law to remove the explicit exception
of programs, both cleri-
for legal services programs to lobby on their own behalf or on
behalf of the Corporation before Congress, to specifically prohibit
propriations Committee
propaganda and publicity designed to influence the introduction,
ervices Corporation and
passage of defeat of legislation.
The current restrictions in the Act on lobbying by recipients did
not explicitly preclude publicity or propaganda activities. Consider-
impact of unioniza-
able controversy has developed over interpretations of the Act and
increase in sal-
appropriation riders regarding the scope of the restrictions. H.R.
of a program. One
3480 clarifies the extent of the restrictions on lobbying by adding to
ercent, with a corre-
the restrictions a prohibition on engaging in publicity or propagan-
have been slow-
da designed to influence the introduction, passage or defeat of leg-
of the large New
islation.
week in November,
The Committee bill also clarifies what is permitted under the re-
The clerical
maining two explicit exceptions. Under the first exception, legal
for nine and a
services programs can only engage in legislative or administrative
and the regional
advocacy when representing an eligible client on a particular appli-
cketed by employees
cation, claim or case which directly involves the client's legal
in November, 1978.
rights and responsibilities. This language is intended to specifically
the national support
prohibit representation on matters of general concern to a broad
ampaign to oust the
class of persons as distinguished from acting on behalf of any par-
which was finally
ticular eligible client. Legislative or administrative representation
with the termination
is permitted only where such representation is necessary to effectu-
ate a client's legal rights and responsibilities or in situations in
strikes. The largest
which the client would be directly affected by legislative or admin-
federal funds is a New
istrative rules, policies or provisions which were proposed or al-
involved in an eleven
ready pending.
to the poor was practi-
strike. When the strike
SECTION 6. LIMITATIONS ON CLASS ACTIONS
eleven weeks approxi-
No class actions may be brought against governmental entities,
beneficial effect by keep-
(Federal, State or local), except in accordance with policies, rules or
there is also a definite
regulations adopted by the Board of Directors of the Corporation.
apport between manage-
SECTION 7. LIABILITY FOR ATTORNEYS' FEES
ervices program tend to
oftentimes being the
The Legal Services Corporation and local programs are made
for weeks in extended
more liable to opponents for attorneys' fees and other costs if their
attending to normal
actions had no reasonable basis in law or fact.
SECTION 8. NEGOTIATION REQUIREMENT
LOBBYING
Programs will be required to attempt to negotiate settlements of
and officers are prohib-
controversies before filing suit.
inti-lobbying provision of
provides criminal penal-
16
SECTION 9. PRIVATE BAR INVOLVEMENT
The Corporation is authorized where feasible, economical, and ef-
ficient, to make substantial amounts of funds available to private
attorneys to provide the opportunity for legal assistance to be ren-
dered to eligible clients.
The Corporation shall issue rules and regulations to provide that
compensation to private lawyers shall not exceed reasonable costs
and expenses and the Corporation shall develop suitable criteria
for determining the amount of such reasonable costs and expenses.
The amendment requires that grants of funding for legal services
delivered by the private bar must be consistent with Section
1007(a)(3) of the Act, which section requires that grants and con-
tracts be made so as to provide "the most economical and effective
delivery of legal services."
SECTION 10. AWARDS OF ATTORNEYS' FEES
Under current law legal services recipients are allowed to accept
attorneys' fees when awarded by courts or administrative agencies.
The Committee bill restricts the current law and requires that
local programs (recipients) transfer attorneys' fees recovered in liti-
gation to the Corporation. This new requirement does not apply to
fees awarded as a result of a mandatory court appointment or to
the reasonable costs of litigation customarily allowed in litigation
against a losing party.
SECTION 11. ADDITIONAL RESTRICTIONS ON USE OF FUNDS
Section 11(1) provides that no funds may be used to suppport or
conduct training programs advocating particular policies or activi-
ties, including the dissemination of information advocating or en-
couraging political activities, labor or antilabor activities, boycotts,
picketing, strikes and demonstrations.
Section 11(2) provides that no funds may be used for legal assist-
ance with respect to any proceeding or litigation relating to abor-
tion unless such abortion is necessary to save the life of the
mother.
The amendment is intended to preclude the great proportion of
abortion litigation by legal services programs. The only litigation
allowed must involve the life of the mother.
While some members of the Committee were concerned about
the exception for legal advice, this exception would not extend to
litigation or other proceedings. It simply indicates that clients re-
questing advice about the state of abortion law may be provided
that advice as well as referred to attorneys who might be able to
assist them.
Section 11(3) provides that no legal assistance can be provided to
a known illegal alien. This restriction is contained in the Current
Appropriation Act, Public Law 96-536.
Section 11(4) provides that no legal aid staff attorney is allowed
to litigate a case to legalize homosexuality. This restriction is con-
tained in the current Appropriation Act.
17
SECTION 12. DOCUMENTATION OF ELIGIBILITY
economical, and ef-
The Legal Services Corporation will require each program to
available to private
maintain documentation on the eligibility of its clients, (which
assistance to be ren-
shall be subject to regular review), as well as to document all activ-
ities relating to legislative and administrative representation.
to provide that
Section 12 of the bill amends section 1008 of the Act relating to
reasonable costs
records and reports to be maintained by the Corporation and its
suitable criteria
grantees by adding a new subsection (f) requiring grantees to main-
costs and expenses.
tain documentation of eligibility with respect to the legal assist-
for legal services
ance and representation provided. Under the Act, when funding is
sistent with Section
provided for legal assistance, recipients have an obligation to
that grants and con-
assure that they are serving eligible clients. However, the Act has
nomical and effective
not specifically required Corporation review of such records. This
new subsection adds such specific requirements to assure that both
grantees and the Corporation will adequately fulfill their obliga-
FEES
tions. Recipients will be required to maintain documentation dem-
are allowed to accept
onstrating the eligibility of clients served and conformity with the
ninistrative agencies.
provisions of section 1007(a) (5) (A) or (B) in the case of legislative
and requires that
or administrative representatation, and the Corporation will be re-
fees recovered in liti-
quired to review such documentation to assure compliance with
does not apply to
this requirement.
appointment
or
to
SECTION 13. FINANCING
allowed in litigation
(1) The authorization for appropriations is extended for fiscal
years 1982 and 1983 at $260 million for each of those years, repre-
USE
OF
FUNDS
senting a 25 percent reduction from the $347 million (fiscal year
used to suppport or
1982) recommendation of President Carter, and a 20 percent reduc-
policies or activi-
tion from Legal Services Corporation's present funding level of
advocating or en-
$321.3 million.
activities, boycotts,
(2) Not more than 7 percent, (now 10 percent), of the annual ap-
propriation of the Legal Services Corporation may be spent on
used for legal assist-
grants or contracts for specialized research, training, technical as-
relating to abor-
sistance, and clearinghouse functions. No funds may be spent
save the life of the
through grants or contracts on broad general legal research unre-
lated to representation of eligible clients.
great proportion of
The only litigation
SECTION 14. TECHNICAL AMENDMENTS
These are technical and conforming amendments only.
concerned about
would not extend to
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
cates that clients re-
law may be provided
In compliance with clause 3 of rule XIII of the Rules of the
who might be able to
House of Representatives, changes in existing law made by the bill,
as reported, are shown as follows (existing law proposed to be omit-
can be provided to
ted is enclosed in black brackets, new matter is printed in italic,
ained in the Current
existing law in which no change is proposed is shown in roman):
attorney is allowed
LEGAL SERVICES CORPORATION ACT
his restriction is con-
18
GOVERNING BODY
SEC. 1004. (a)
***
*
*
*
*
*
*
[(f) Within six months after the first meeting of the Board, the
Board shall request the Governor of each State to appoint a nine-
member advisory council for such State. A majority of the mem-
bers of the advisory council shall be appointed, after recommenda-
tions have been received from the State bar association, from
among the attrneys admitted to practice in the State, and the
membership of the council shall be subject to annual reappoint-
ment. If ninety days have elapsed without such an advisory council
appointed by the Governor, the Board is authorized to appoint such
a council. The advisory council shall be charged with notifying the
Corporation of any apparent violation of the provisions of this title
and applicable rules, regulations, and guidelines promulgated pur-
suant to this title. The advisory council shall, at the same time,
furnish a copy of the notification to any recipient affected thereby,
and the Corporation shall allow such recipient a reasonable time
(but in no case less than thirty days) to reply to any allegation con-
tained in the notification.
(f) Within 90 days after the date of enactment of the Legal Serv-
ices Corporation Act Amendments of 1981, the Board shall request
the Governor of each State to appoint a ten member advisory council
for such State. A majority of the members of the advisory council
shall be appointed, after recommendations have been received from
the State bar association, from among the attorneys admitted to
practice in the State, and the membership of the council shall be
subject to annual reappointment. The other members of the council
shall include two eligible clients and two members of the general
public from that State. If 90 days have elapsed after such request
without such an advisory council being appointed by the Governor,
the Board shall appoint such a council. The advisory council shall
be charged with notifying the Corporation of any apparent violation
of the provisions of this title and applicable rules, regulations, and
guidelines promulgated pursuant to this title. The advisory council
shall, at the same time, furnish a copy of the notification to any re-
cipient affected thereby, and the Corporation shall allow such re-
cipient a reasonable time (but in no case less than 30 days) to reply
to any allegation contained in the notification. The Corporation and
recipients shall notify the relevant State advisory councils promptly
of any alleged violations of this title by recipients or their employ-
ees. At least 60 days prior to the approval of any grant application
or prior to entering into a contract or prior to the initiation of any
other project, the Corporation shall announce publicly such grant,
contract, or project and shall send notification thereof to the adviso-
ry council of any State in which legal assistance will be provided as
a result of the grant, contract, or project. Notification shall include
a specific description of the grant application or proposed contract
or project and a request for comments and recommendations there-
on. The council shall be given a reasonable opportunity to review
and comment on such alleged violations and on such grants, con-
tracts, and projects.
*
*
19
POWERS, DUTIES, AND LIMITATIONS
SEC. 1006. (a) To the extent consistent with the provisions of this
title, the Corporation shall exercise the powers conferred upon a
eeting of the Board, the
nonprofit corporation by the District of Columbia Nonprofit Corpo-
State to appoint a nine-
ration Act (except for section 1005(o) of title 29 of the District of
majority of the mem-
Columbia Code). In addition, the Corporation is authorized-
after recommenda-
[(1)(A) to provide financial assistance to qualified programs
bar association, from
furnishing legal assistance to eligible clients, and to make
in the State, and the
grants to and contracts with-
to annual reappoint-
[(i) individuals, partnerships, firms, corporations, and
such an advisory council
nonprofit organizations, and
uthorized to appoint such
[(ii) State and local governments (only upon application
arged with notifying the
by an appropriate State or local agency or institution and
he provisions of this title
upon a special determination by the Board that the ar-
delines promulgated pur-
rangements to be made by such agency or institution will
shall, at the same time,
provide services which will not be provided adequately
ecipient affected thereby,
through nongovernment arrangements),
a reasonable time
for the purpose of providing legal assistance to eligible clients
to any allegation con-
under this title, and (B) to make such other grants and con-
tracts as are necessary to carry out the purposes and provi-
of the Legal Serv-
sions of this title;]
the Board shall request
(1) to provide financial assistance to and to make grants to
member advisory council
and contracts with-
of the advisory council
(A) qualified nonprofit organizations chartered under the
have been received from
laws of one of the States for the sole purpose of furnishing
he attorneys admitted to
legal assistance to eligible clients, the majority of the board
of the council shall be
of directors or other governing body of which organization
members of the council
is comprised of attorneys who are admitted to practice in
members of the general
one of the States and who are appointed to terms of office
elapsed after such request
on such board or body by the governing bodies of State,
ppointed by the Governor,
county, or municipal bar associations the membership of
The advisory council shall
which represents a majority of the attorneys practicing law
of any apparent violation
in the locality in which the organization is to provide legal
rules, regulations, and
assistance, and
The advisory council
(B) private attorneys for the sole purpose of furnishing
the notification to any re-
legal assistance to eligible clients pursuant to the provi-
shall allow such re-
sions of section 1007(a)(12);
than 30 days) to reply
*
*
The Corporation and
(b)(1)(A) The Corporation shall have the authority to insure the
advisory councils promptly
compliance of recipients and their employees with the provisions of
recipients or their employ-
this title and the rules, regulations, and guidelines promulgated
of any grant application
pursuant to this title, and to terminate, after a hearing in accord-
to the initiation of any
ance with [section 1011,] paragraph (5) of this subsection, finan-
publicly such grant,
cial support to a recipient which fails to comply.
thereof to the adviso-
(1)(B) No question of whether representation is authorized under
istance will be provided as
this title, or the rules, regulations or guidelines promulgated pursu-
Notification shall include
ant to this title, shall be considered in, or affect the final disposi-
or proposed contract
tion of, any proceeding in which a person is represented by a re-
recommendations there-
cipient or an employee of a recipient. A litigant in such a proceed-
opportunity to review
ing may refer any such question to the Corporation which shall
and on such grants, con-
review and dispose of the question promptly, and take appropriate
action. This subparagraph shall not preclude judicial review availa-
*
ble under applicable law.
20
(2) If a recipient finds that any of its employees has violated or
caused the recipient to violate the provisions of this title or the
rules, regulations, and guidelines promulgated pursuant to this
title, the recipient shall take appropriate remedial or disciplinary
action in accordance with the types of procedures prescribed in
[the provisions of section 1011] regulations promulgated pursuant
to the last sentence of paragraph (5) of this subsection.
*
*
*
*
*
*
*
(5) The Corporation shall insure that (A) no employee of the Cor-
poration or of any recipient [(except as permitted by law in con-
nection with such employee's own employment situation)], while
carrying out legal assistance activities under this title, engage in,
or encourage others to engage in, any public demonstration or pick-
eting, boycott, or strike; and (B) no such employee shall, at any
time, engage in, or encourage others to engage in, any of the fol-
lowing activities: (i) any rioting or civil disturbance, (ii) any activity
which is in violation of an outstanding injunction of any court of
competent jurisdiction, (iii) any other illegal activity, or (iv) any in-
tentional identification of the Corporation or any recipient with
any political activity prohibited by section 1007(a)(6). [The Board,
within ninety days after its first meeting, shall issue rules and reg-
ulations to provide for the enforcement of this paragraph and sec-
tion 1007(a)(5), which rules shall include, among available reme-
dies, provisions, in accordance with the types of procedures pre-
scribed in the provision of section 1011, for suspension of legal as-
sistance supported under this title, suspension of an employee of
the Corporation or of any employee of any recipient by such recipi-
ent, and, after consideration of other remedial measures and after
a hearing in accordance with section 1011, the termination of such
assistance or employment, as deemed appropriate for the violation
in question. The Board, within 30 days after the date of enact-
ment of the Legal Services Corporation Act Amendments of 1981,
shall issue regulations to provide for the enforcement of this title,
which regulations shall include, among available remedies, provi-
sions for the immediate suspension of financial assistance under
this title, suspension of an employee of the Corporation or any em-
ployee of any recipient by such recipient or by the President of the
Corporation, and the reduction or termination of such assistance or
employment as deemed appropriate for the violation involved. Fi-
nancial assistance under this title shall not be terminated or sus-
pended for a period of more than 30 days unless the recipient, grant-
ee, or contractor has been afforded reasonable notice and an oppor-
tunity for a fair hearing pursuant to regulations promulgated by the
Corporation.
*
*
*
*
[(c) The Corporation shall not itself-
[(1) participate in litigation unless the Corporation or a re-
cipient of the Corporation is a party, or a recipient is repre-
senting an eligible client in litigation in which the interpreta-
tion of this title or a regulation promulgated under this title is
an issue, and shall not participate on behalf of any client other
than itself: or
[(2) undertake to influence the passage or defeat of any leg-
islation by the Congress of the United States or by any State
21
employees has violated or
of this title or the
or local legislative bodies, except that personnel of the Corpo-
ulgated pursuant to this
ration may testify or make other appropriate communication
remedial or disciplinary
(A) when formally requested to do so by a legislative body, a
procedures prescribed in
committee, or a member thereof, or (B) in connection with leg-
promulgated pursuant
islation or appropriations directly affecting the activities of the
Corporation.
subsection.
(c) The Corporation shall not itself participate in litigation unless
*
*
*
the Corporation or a recipient of the Corporation is a party, or a re-
no employee of the Cor-
cipient is representing an eligible client in litigation in which the
permitted by law in con-
interpretation of this title or a regulation promulgated under this
byment situation)] while
title is an issue, and shall not participate on behalf of any client
this title, engage in,
other than itself. The provisions of section 1913 of title 18, United
demonstration or pick-
States Code, shall apply to all officers and employees of the Corpo-
employee shall, at any
ration.
(d)(1)
*
engage in, any of the fol-
*
sturbance, (ii) any activity
*
*
*
injunction of any court of
activity, or (iv) any in-
(5) No class action suit, class action appeal, or amicus curiae
or any recipient with
class action may be undertaken, directly or through others, by a
1007(a)(6). [The Board,
staff attorney, except with the express approval of a project direc-
shall issue rules and reg-
tor of a recipient in accordance with policies established by the gov-
of this paragraph and sec-
erning body of such recipient. No class action suit may be brought
among available reme-
against the Federal Government or any State or local government
types of procedures pre-
except in accordance with policies or regulations adopted by the
Board.
for suspension of legal as-
ension of an employee of
*
*
*
*
recipient by such recipi-
[(f) If an action is commenced by the Corporation or by a recipi-
medial measures and after
ent and a final order is entered in favor of the defendant and
the termination of such
against the Corporation or a recipient's plaintiff, the court shall,
propriate for the violation
upon motion by the defendant and upon a finding by the court that
after the date of enact-
the action was commenced or pursued for the sole purpose of
Act Amendments of 1981,
harassment of the defendant or that the Corporation or a recipi-
enforcement of this title,
ent's plaintiff maliciously abused legal process, enter an order
available remedies, provi-
(which shall be appealable before being made final) awarding rea-
financial assistance under
sonable costs and legal fees incurred by the defendant in defense of
he Corporation or any em-
the action, except when in contravention of a State law, a rule of
or by the President of the
court, or a statute of general applicability. Any such costs and fees
of such assistance or
shall be directly paid by the Corporation.
the violation involved. Fi-
(f) If an action is commenced by the Corporation or by a recipient
not be terminated or sus-
and a final order is entered in favor of the defendant and against
unless the recipient, grant-
the Corporation or a recipient's plaintiff, the court shall, upon
nable notice and an oppor-
motion by the defendant and upon a finding by the court that the
promulgated by the
action had no reasonable basis in law or fact, enter an order (which
shall be appealable before being made final) awarding reasonable
*
*
*
costs and legal fees incurred by the defendant in defense of the
action, except when in contravention of a State law, a rule of the
the Corporation or a re-
court, or a statute of general applicability. Any such costs and fees
or a recipient is repre-
shall be directly paid by the Corporation.
in which the interpreta-
GRANTS AND CONTRACTS
mulgated under this title is
behalf of any client other
SEC. 1007. (a) With respect to grants or contracts in connection
with the provision of legal assistance to eligible clients under this
assage or defeat of any leg-
title, the Corporation shall-
States or by any State
22
(1)
*
*
*
*
*
*
[(5) insure that no funds made available to reipients by the
Corporation shall be used at any time, directly or indirectly, to
influence the issuance, amendment, or revocation of any execu-
tive order or similar promulgation by any Federal, State, or
local agency, or to undertake to influence the passage or defeat
of any legislation by the Congress of the United States, or by
any State or local legislative bodies, or State proposals by ini-
tiative petition, except where—
[(A) representation by an employee of a recipient for
any eligible client is necessary to the provision of legal
advice and representation with respect to such client's
legal rights and responsibilities (which shall not be con-
strued to permit an attorney or a recipient employee to so-
licit a client, in violation of professional responsibilities,
for the purpose of making such representation possible); or
[(B) a governmental agency, legislative body, a commit-
tee, or a member thereof-
[(i) requests personnel of the recipient to testify,
draft, or review measures or to make representations
to such agency, body, committee, or member, or
[(ii) is considering a measure directly affecting the
activities under this title of the recipient or the Corpo-
ration.
"(5) insure that no funds made available to any recipient
shall be used at any time, directly or indirectly, to attempt to
influence any decision by a Federal, State, or local agency, to
attempt to influence, directly or indirectly, through publicity,
propaganda, or otherwise, the introduction, passage, or defeat of
any legislation in the Congress of the United States, or in any
State or local legislative body, or to attempt to influence State
proposals by initiative petition, except where-
(A) legal assistance is provided by an employee of a re-
cipient to an eligible client on a particular application,
claim, or case, which directly involves that client's legal
rights and responsibilities, except that this subparagraph
shall not be construed to permit a staff attorney or any
other employee of a recipient to solicit a client, in violation
of professional responsibilities, for the purpose of making
such representation possible; or
(B) a governmental agency, a legislative body or a com-
mittee thereof, or a member of such a legislative body or
committee formally requests that an employee of a recipient
testify or make representations to such agency, legislative
body, committee, or member, in which case the employee
may respond only to the agency, legislative body, committee,
or member making the request.
[(9) insure that every grantee, contractor, or person or
entity receiving financial assistance under this title or prede-
cessor authority under this Act which files with the Corpora-
tion a timely application for refunding is provided interim
funding necessary to maintain its current level of activities
until (A) the application for refunding has been approved and
23
funds pursuant thereto received, or (B) the application for re-
funding has been finally denied in accordance with section
lable to reipients by the
1011 of this Act; and]
directly or indirectly, to
(9) insure that every grantee, contractor, or person or entity re-
revocation of any execu-
ceiving financial assistance under this title that files with the
any Federal, State, or
Corporation a timely application for refunding is provided in-
the passage or defeat
terim funding, pending the decision of the Corporation on the
the United States, or by
application, sufficient to allow for the continuation of represen-
State proposals by ini-
tation of clients on whose behalf litigation, negotiation, or other
forms of representation have been initiated;
of a recipient for
(10) insure that all attorneys, while engaged in legal assist-
the provision of legal
ance activities supported in whole or in part by the Corpora-
respect to such client's
tion, refrain from the persistent incitement of litigation and
which shall not be con-
any other activity prohibited by the Canons of Ethics and Code
recipient employee to so-
of Professional Reponsibility of the American Bar Association,
fessional responsibilities,
and insure that such attorneys refrain from personal represen-
presentation possible); or
tation for a private fee in any cases in which they were in-
gislative body, a commit-
volved while engaged in such legal assistance activities [.];
(11) require recipients to attempt to negotiate a settlement of
the recipient to testify,
controversies before filing suit in order to prevent the persistent
to make representations
incitement of litigation and to encourage the resolution of such
or member, or
controversies through compromise and settlement rather than
directly affecting the
through litigation, except that nothing in this paragraph shall
recipient or the Corpo-
preclude attorneys from immediately filing suit where the cir-
cumstances of the case, as determined by the local program di-
vailable to any recipient
rector, require immediate action to protect the interests of a
client;
indirectly, to attempt to
State, or local agency, to
(12) in each fiscal year, to the extent feasible and consistent
rectly, through publicity,
with paragraph (3) of this subsection, make available substan-
passage, or defeat of
tial amounts of funds to provide the opportunity for legal as-
United States, or in any
sistance to be rendered to eligible clients by private attorneys,
ttempt to influence State
except that the Corporation shall issue regulations to provide
that compensation to private attorneys for rendering such legal
by an employee of a re-
assistance shall not exceed reasonable costs and expenses and
particular application,
the Corporation shall develop suitable criteria for determining
volves that client's legal
the amount of such reasonable costs and expenses; and
that this subparagraph
(13) insure that any recipient who receives an award of attor-
a staff attorney or any
ney's fees shall, notwithstanding any other provision of law,
a client, in violation
transfer such fees to the Corporation, except that (A) no recipi-
the purpose of making
ent shall be required to transfer fees or other compensation re-
ceived as a result of a mandated court appointment, and (B) a
egislative body or a com-
recipient may retain reasonable costs customarily allowed in
a legislative body or
litigation against an unsuccessful party.
employee of a recipient
(b) No funds made available by the Corporation under this title,
either by grant or contract, may be used-
such agency, legislative
(1)
*
*
which case the employee
gislative body, committee,
*
[(6) to support or conduct training programs for the purpose
contractor, or person or
of advocating particular public policies or encouraging political
under this title or prede-
activities, labor or antilabor activities, boycotts, picketing,
files with the Corpora-
strikes, and demonstrations, as distinguished from the dissemi-
is provided interim
nation of information about such policies or activities, except
urrent level of activities
that this provision shall not be construed to prohibit the train-
has been approved and
24
ing of attorneys or paralegal personnel necessary to prepare
them to provide adequate legal assistance to eligible clients;
(6) to support or conduct training programs for the purpose of
advocating particular public policies or encouraging political
activities, labor or antilabor activities, boycotts, picketing,
strikes, and demonstrations including the dissemination of
information about such policies or activities, except that this
paragraph shall not be construed to prohibit the training of
attorneys or paralegal personnel necessary to prepare them to
provide adequate legal assistance to eligible clients;
[(8) to provide legal assistance with respect to any proceed-
ing or litigation which seeks to procure a nontherapeutic abor-
tion or to compel any individual or institution to perform an
abortion, or assist in the performance of an abortion, or pro-
vide facilities for the performance of an abortion, contrary to
the religious beliefs or moral convictions of such individual or
institution;]
(8)(A) to provide legal assistance with respect to any proceed-
ing or litigation relating to abortion unless such abortion is
necessary to save the life of the mother, or (B) to support in
whole or in part any legal assistance activity of any attorney in
connection with any proceeding or litigation relating to abor-
tion unless such abortion is necessary to save the life of the
mother, except that nothing in this paragraph shall prohibit
the provision of legal advice to an eligible client with respect to
such client's legal rights and responsibilities;
(9) to provide legal assistance with respect to any proceeding
or litigation relating to the desegregation of any elementary or
secondary school or school system, except that nothing in this
paragraph shall prohibit the provision of legal advice to eligi-
ble client with respect to such client's legal rights and respon-
sibilities; [or]
(10) to provide legal assistance with respect to any proceed-
ing or litigation arising out of a violation of the Military Selec-
tive Service Act or of desertion from the Armed Forces of the
United States, except that legal assistance may be provided to
an eligible client in a civil action in which such client alleges
that he was improperly classified prior to July 1, 1973, under
the Military Selective Service Act or prior corresponding
law[.];
(11) to provide legal assistance for or on behalf of any indi-
vidual who is known to be an alien in the United States in vio-
lation of the Immigration and Nationality Act or any other law
of the United States, or convention or treaty to which the
United States is a party, relating to the immigration, exclusion,
deportation, or expulsion of aliens; or
(12) to provide legal assistance for any litigation which seeks
to adjudicate the legalization of homosexuality.
25
RECORDS AND REPORTS
necessary to prepare
to eligible clients;
SEC. 1008. (a) The Corporation is authorized to require such re-
grams for the purpose of
ports as it deems necessary from any grantee, contractor, or person
encouraging political
or entity receiving financial assistance under this title regarding
boycotts, picketing,
activities carried out pursuant to this title.
the dissemination of
(b) The Corporation is authorized to prescribe the keeping of
tivities, except that this
records with respect to funds provided by grant or contract and
prohibit the training of
shall have access to such records at all reasonable times for the
to prepare them to
purpose of insuring compliance with the grant or contract or the
clients;
terms and conditions upon which financial assistance was provided.
(c) The Corporation shall publish an annual report which shall
be filed by the Corporation with the President and the Congress.
respect to any proceed-
Such report shall include a description of services provided pursu-
a nontherapeutic abor-
ant to section 1007(a)(2)(C) (i) and (ii).
nstitution to perform an
(d) Copies of all reports pertinent to the evaluation, inspection, or
of an abortion, or pro-
monitoring of any grantee, contractor, or person or entity receiving
an abortion, contrary to
financial assistance under this title shall be submitted on a timely
of such individual or
basis to such grantee, contractor, or person or entity, and shall be
maintained in the principal office of the Corporation for a period of
respect to any proceed-
at least five years subsequent to such evaluation, inspection, or
unless such abortion is
monitoring. Such reports shall be available for public inspection
or (B) to support in
during regular business hours, and copies shall be furnished, upon.
activity of any attorney in
request, to interested parties upon payment of such reasonable fees
tigation relating to abor-
to save the life of the
as the Corporation may establish.
(e) The Corporation shall afford notice and reasonable opportuni-
paragraph shall prohibit
ty for comment to interested parties prior to issuing rules, regula-
client with respect to
tions, and guidelines, and it shall publish in the Federal Register
bilities;
at least 30 days prior to their effective date all its rules, regula-
respect to any proceeding
tions, guidelines, and instructions.
of any elementary or
(f) The Corporation shall require each recipient to maintain docu-
cept that nothing in this
mentation (1) demonstrating the eligibility of each person to whom
of legal advice to eligi-
such recipient provides legal assistance, and (2) of any activity re-
legal rights and respon-
ferred to in subparagraph (A) or (B) of section 1007(a)(5) of this title.
respect to any proceed-
The Corporation shall periodically review such documentation, in a
manner that protects confidential client information, to assure com-
of the Military Selec-
the Armed Forces of the
pliance with this subsection and shall include in each annual
may be provided to
report prepared pursuant to subsection (c) of this section its findings
which such client alleges
with respect to such compliance.
to July 1, 1973, under
*
*
or prior corresponding
FINANCING
or on behalf of any indi-
the United States in vio-
SEC. 1010. (a) There are authorized to be appropriated for the
Act or any other law
purpose of carrying out the activities of the Corporation,
or treaty to which the
$90,000,000 for fiscal year 1975, $100,000,000 for fiscal year 1976,
the immigration, exclusion,
and such sums as may be necessary for fiscal year 1977. These are
authorized to be appropriated for the purpose of carrying out the
any litigation which seeks
activities of the Corporation $205,000,000 for the fiscal year 1978,
osexuality.
and such sums as may be necessary for each of the two succeeding
fiscal years. There are authorized to be appropriated for purposes of
*
carrying out the activities of the Corporation $260,000,000 for the
fiscal year 1982, and $260,000,000 for the fiscal year 1983. The first
appropriation may be made available to the Corporation at any
time after six or more members of the Board have been appointed
26
and qualified. Appropriations for that purpose shall be made for
not more than two fiscal years, and shall be paid to the Corpora-
tion in annual installments at the beginning of each fiscal year in
such amounts as may be specified in Acts of Congress making ap-
propriations.
*
*
*
[(d) Not more than 10 percent of the amounts appropriated pur-
suant to subsection (a) of this section for any fiscal year shall be
available for grants or contracts under section 1006(a)(3) in any
such year.
(d) Not more than seven percent of the amounts appropriated pur-
suant to subsection (a) of this section for the fiscal year 1982 and
any fiscal year thereafter shall be available in any such fiscal year
for grants or contracts under section 1006(a)(3) of this title.
[SPECIAL LIMITATIONS
[SEC. 1011. The Corporation shall prescribe procedures to insure
that-
[(1) financial assistance under this title shall not be sus-
pended unless the grantee, contractor, or person or entity re-
ceiving financial assistance under this title has been given rea-
sonable notice and opportunity to show cause why such action
should not be taken; and
[(2) financial assistance under this title shall not be termi-
nated, an application for refunding shall not be denied, and a
suspension of financial assistance shall not be continued for
longer than thirty days, unless the grantee, contractor, or
person or entity receiving financial assistance under this title
has been afforded reasonable notice and opportunity for a
timely, full, and fair hearing, and, when requested, such hear-
ing shall be conducted by an independent hearing examiner.
Such hearing shall be held prior to any final decision by the
Corporation to terminate financial assistance or suspend or
deny funding. Hearing examiners shall be appointed by the
Corporation in accordance with procedures established in regu-
lations promulgated by the Corporation.]
*
*
*
*
*
burpose shall be made for
be paid to the Corpora-
of each fiscal year in
of Congress making ap-
DISSENTING VIEWS BY F. JAMES SENSENBRENNER, JR.
*
amounts appropriated pur-
any fiscal year shall be
I oppose H.R. 3480 because it fails to correct the shortcomings of
section 1006(a)(3) in any
the present authorizing legislation under which the Legal Services
Corporation and its recipients operate. There is no provision to dis-
amounts appropriated pur-
courage the Legal Services Corporation from developing its agenda
the fiscal year 1982 and
for political and socio-economic change through both the courts and
in any such fiscal year
its taxpayer-financed lobbying efforts on Congress and various
(a)(3) of this title.
state legislatures.
Past efforts to restrict the Corporation's activities have simply
failed. Directives to restrict the activities of the LSC and its grant
recipients in their brand of social activism have simply been ig-
scribe procedures to insure
nored. There is no reason to believe the grant recipients will
change their tune, just because a new Board of Directors has been
this title shall not be sus-
or person or entity re-
appointed. Supporters of H.R. 3480 will argue that the controversial activi-
title has been given rea-
ties which have characterized the LSC will be curtailed. However,
how cause why such action
a closer examination of its provisions shows crevices which LSC at-
torneys will widen into chasms. Business as usual will continue.
title shall not be termi-
When this legislation was before the full Judiciary Committee,
shall not be denied, and a
several amendments were offered which would have tightened up
shall not be continued for
some of these loopholes by clarifying ambiguous provisions. These
he grantee, contractor, or
amendments failed and the loopholes still remain.
assistance under this title
For example, in previous years, restrictions were adopted to pro-
and opportunity for a
hibit LSC attorneys from becoming involved in abortion litigation.
when requested, such hear-
H.R. 3480, while attempting to further limit abortion rights litiga-
pendent hearing examiner.
tion, still provides an exception which allows LSC attorneys to give
any final decision by the
legal advice "to an eligible client with respect to such client's
assistance or suspend or
rights and responsibilities." This provision does not preclude taking
shall be appointed by the
an abortion rights case under the guise of representation "concern-
cedures established in regu-
ing such client's legal rights and responsibilities." For example,
legal counsel could be given to minor children who seek abortions
without prior parental notification or consent. My amendment to
*
close this loophole was defeated by a slim margin, and will be of-
fered again on the House floor.
An example of LSC's unresponsiveness to Congressional intent
was recently demonstrated in the grass roots lobbying campaign
which the LSC and its grant recipients have found themselves en-
gaged over the last year. Though Congress, over the past several
years, has attempted to restrict the lobbying efforts of the LSC and
its grant recipients by attaching restrictions on appropriations leg-
islation, these restrictions have been totally ignored. On November
24, 1980, the GAO, in a letter to Congressman Ben Gilman, stated
appropriated funds had been used illegally for lobbying activities.
This opinion was ignored by Alan W. Houseman, the Director of
LSC's Research Institute. In a December 29, 1980, memorandum to
"State Coordinators and other interested parties", Houseman out-
lined an ambitious grass roots lobbying campaign designed to pre-
vent the Reagan Administration and Congress from altering or
changing the manner in which legal services to the indigent are
(27)
28
made. This memorandum also discussed a strategy to defeat Rea-
gan's efforts to alter federal social programs. A coordinating strat-
egy was also mentioned regarding Reagan's appointment of a new
Board of Directors. In a May 1, 1981, 12-page opinion, the Acting
Comptroller General, Milton W. Soclar, stated, "After reviewing
this material (the Houseman memo and other documentation sub-
mitted by my office), we have concluded that LSC has itself en-
gaged and allowed its grant recipients to engage in lobbying activi-
ties prohibited by federal law." Although a compromise amend-
ment offered by me was adopted, the provisions in the bill are
weak and will not stop these grass roots lobbying efforts.
In this GAO opinion, Soclar also stated,
because we are not
authorized to settle the accounts of the Corporation, we are unable
to take exception to these illegal payments." I offered an amend-
ment in Committee to give the Comptroller General the power to
settle the accounts, and thus be able to enforce the anti-lobbying
restrictions as applied to both the LSC and its grantees. This
amendment was defeated with opponents arguing that LSC is an
independent agency which should not be subject to the settlement
authority of the GAO. In other words, the LSC can continue to
expend appropriated funds illegally without being subject to GAO
sanctions which would ensure compliance.
Another aspect of the Houseman memorandum concerns the sug-
gestion that files be maintained on Members of Congress and their
key staff persons. The memo stated such files should include back-
ground information on Members and staff, the names of political
contributors, prior voting records, etc. In Committee, I offered an
amendment to prohibit the compilation of information on the
"voting record of any Member of Congress or any other data con-
cerning the position of such Member on an issue, or to compile per-
sonal information on the staff of any Member of Congress." The
Legal Services Corporation was created to help indigent persons,
not to maintain files on the background or voting record of Con-
gressmen or Congressional offices.
H.R. 3480 is also deficient in making the Corporation more re-
sponsive in the filing of class action suits against Government enti-
ties. In the past several years, legal aid lawyers have filed many
controversial class action suits. The criticism in the filing of many
of these cases has revolved around the issue of bad faith in both
the filing of cases, failure to negotiate court settlements, etc. H.R.
3480 provides "No class action suit may be brought against the
Federal Government or any State or local government except in ac-
cordance with policies or regulations adopted by the Board." This
provision is inadequate because it allows the Board of Directors to
delegate its authority to the President of the Corporation. This
could allow the President to be both the approver and initiator of
class action litigation. I offered an amendment in Committee to
place all of the responsibility for the approval of class action suits
against Government entities on the Board of Directors or a subcom-
mittee thereof. The language in H.R. 3480 does not address the
major objection that there should be more direct supervision by the
National Board, and accountability for the activities of grantees by
the National Board. The Board of the Corporation is supposed to
manage the Corporation and set policy. A class action suit is a
major policy decision that should be made by the Corporation.
29
strategy to defeat Rea-
The "bad faith" argument also somewhat reflects on the attor-
A coordinating strat-
neys who are filing the lawsuits. The ABA Code of Professional Re-
appointment of a new
sponsibility Disciplinary Rule 7-102 prohibits the filing of lawsuits
opinion, the Acting
where a lawyer has knowledge that the claim is unwarranted, was
"After reviewing
filed for harassment, etc. In Committee, I offered an amendment to
documentation sub-
include D.R. 7-102 of the ABA Code of Professional Responsibility
that LSC has itself en-
as a part of the grant contract governing use of LSC funds given to
in lobbying activi-
a recipient. A violation of the grant would be a contractual one
a compromise amend-
which could be dealt with as such, instead of having to go through
visions in the bill are
a lengthy disciplinary proceeding by a State bar where the offense
bying
efforts.
occurred. This amendment was defeated. It will be offered again
because we are not
when the bill is before the full House of Representatives.
poration, we are unable
Another weakness in the present law, which is not adequately
I offered an amend-
addressed by the bill, concerns the ability of the LSC to compel spe-
General the power to
cific performance of its grant agreements. H.R. 3480 provides for
the anti-lobbying
the issuance of regulations by the LSC to govern enforcement of
and its grantees. This
grant agreements. This is akin to the fox guarding the chicken
arguing that LSC is an
coop. Also, too many times Congress has delegated its law-making
ubject to the settlement
authority to agencies. An amendment which I offered on behalf of
LSC can continue to
Congressman Gilman would firmly establish the right of the LSC
being subject to GAO
to compel "specific performance" of its grant agreements. This
amendment would also allow the LSC, the U.S. Attorney General,
andum concerns the sug-
or any State to sue a local grantee to compel compliance with the
of Congress and their
Legal Services Corporation Act and appropriate regulations. Con-
should include back-
gress has provided similar powers for suits by the Attorney Gener-
the names of political
al to enforce other quasi-public agencies such as Comsat, the Syn-
Committee, I offered an
fuels Corporation, and Amtrak. Also, according to the Congression-
of information on the
al Research Service, Title II of the Hart-Scott-Rodino Antitrust Im-
or any other data con-
provement Act permits State Attorney Generals to bring parens
issue, or to compile per-
patria actions for monetary damages resulting from violations of
of Congress." The
the Sherman Antitrust Act.
help indigent persons,
Another problem concerns presumptive funding for present LSC
voting record of Con-
grant recipients. The present Act provides existing grantees with
an automatic pipeline to the Federal Treasury when their present
he Corporation more re-
grants expire. H.R. 3480 eliminates this statutory presumption, but
against Government enti-
contains no transition provisions in case the LSC Board should
lawyers have filed many
decide to service a different geographical area. An amendment I of-
in the filing of many
fered would have provided, if adopted, appropriate transitional au-
of bad faith in both
thorization. It would encourage the LSC Board to expeditiously
settlements, etc. H.R.
handle applications either for refunds or for new grantees, by put-
be brought against the
ting the acceptance of new cases on suspense until the Board acts
government except in ac-
on the application.
by the Board." This
A final sore point in this legislation is the failure to adopt a pro-
the Board of Directors to
vision prohibiting the representation of individuals unlawfully in
of the Corporation. This
the U.S. The LSC has ignored language in appropriations language
approver and initiator of
prohibiting funds from being spent to represent illegal aliens. An
in Committee to
amendment I offered would have prohibited LSC money from being
of class action suits
spent to represent an individual "(A) who is not a U.S. citizen, is
of Directors or a subcom-
not an alien admitted for permanent residence, or is not otherwise
does not address the
present in the U.S. under color of law, or (B) in any proceeding or
direct supervision by the
judicial action relating to the exclusion or deportation of that indi-
activities of grantees by
vidual from the U.S." Thus, my amendment would allow the free
orporation is supposed to
representation of individuals legally in the U.S. while also prohibit-
A class action suit is a
ing representation of illegal aliens in any kind of deportation pro-
by the Corporation.
ceedings.
30
Even if these and other corrective amendments are adopted, I am
not convinced that business as usual will change. Most of the pres-
ent grant recipients will, for quite some time, continue to receive
grants from the LSC. The presumptive funding provisions in the
present law have "frozen out" competing grantees for such a long
time that it takes a while for alternate delivery systems (such as
Judicare) or other prospective grantees to file applications. The
present grantees will thus continue to offer their brand of legal as-
sistance, no matter what the dictates of Congress or a new LSC
Board. The illegal lobbying activities, and the continuation of abor-
tion representation, illegal alien representation, and other social
activist representation which Congress has tried to curtail will be
continued in one form or another.
It should be emphasized that the abolition of the Legal Services
Corporation is not synonymous with denying legal help to the poor.
Federal funds to provide free legal services to the poor would still
be available through block grants of Federal aid given to each
State. Also, the 575,000 members of the legal profession should con-
tinue to provide donated services to the needy, as their code of
ethics requires. Lastly, the poor can still obtain legal services from
other public and private sources, as in the past.
The Legal Services Corporation is a prime example of a Federal
program that has run amok because of lack of control and local di-
rection to accommodate local needs. It is time to reintroduce the
local control of Government programs such as the LSC, which last
year's program mandated.
F. JAMES SENSENBRENNER, Jr.
SAM B. HALL, Jr.
JOHN ASHBROOK.
dments are adopted, I am
change. Most of the pres-
time, continue to receive
funding provisions in the
grantees for such a long
delivery systems (such as
DISSENTING VIEWS BY CONGRESSMAN SAM B. HALL, JR.
to file applications. The
their brand of legal as-
My good friend and colleague Representative James Sensenbren-
Congress or a new LSC
ner presents in his dissenting views, which I co-signed, very telling
the continuation of abor-
arguments for opposing H.R. 3480, providing for the reauthoriza-
ntation, and other social
tion of the Legal Services Corporation (LSC). The evidentiary
tried to curtail will be
record of LSC abuses is clear and cannot be denied, and I commend
the gentleman for bringing that record to light. LSC attorneys are
of the Legal Services
going far afield of what was originally intended. They regard their
legal help to the poor.
very presence as an opportunity to put in motion their own notions
to the poor would still
of social order and the sooner an educated public opinion becomes
ederal aid given to each
aware of this fact the better.
profession should con-
To Jim Sensenbrenner's record of abuses in the program, I add
needy, as their code of
the following cases excerpted from a list of representative LSC
obtain legal services from
cases which appeared in an OMB working paper on the program:
past.
Litigation to compel payment of SSI benefits to alcoholics;
example of a Federal
Litigation to compel the New York City Transit Authority to
of control and local di-
hire former heroin addicts;
time to reintroduce the
Successful Federal district court suit to compel New York to
as the LSC, which last
pay State welfare benefits to illegal alien parent;
Successful Louisiana class action compelling Department of
SENSENBRENNER,
Jr.
Corrections to pay inmate compensation to inmates of a state
HALL,
Jr.
prison that has no income-producing programs;
ASHBROOK.
Suit against California grower who issued short-handled hoes
to workers who could not stand while using them; grower con-
tended that, if workers use long-handled hoes, supervisors
cannot tell who is resting;
Federal district court suit challenging practice of Oregon
school district of searching students without warrants or prob-
able cause; and
An attorney for Hartford Neighborhood Legal Services last
year sought $7,000 to $10,000 from Connecticut to mandate
payment for a welfare recipient's sex change operation.
LSC's case history is clearly one of using taxpayer dollars to
force judicial resolution of political and public policy issues best
left to Congress for deliberation. Poor people with ordinary legal
problems are too often ignored as LSC lawyers go after benchmark
cases on issues to bring about social change and reputation build-
ing. LSC has evolved into an employment program for lawyers en-
gaged in the pursuit of a host of politically inspired activities. Just
as taxpayers should not be asked to subsidize the ACLU, Common
Cause, the U.S. Chamber of Commerce, or other such legitimate
special interest groups, neither should they be asked to subsidize
the operations of LSC lawyers who use the poor as pawns for their
own personal efforts at lobbying and social engineering.
Under the guise of helping indigents, almost any kind of social
"reform" activity has been justified. The near endless list of abuses
in the program continues to grow. As I see it, LSC efforts at social
engineering represent undue centralization in its most destructive
(31)
32
and least responsible form. It, indeed, frustrates intelligent at-
tempts to deal with a social problem.
The record of the Corporation justifies its elimination. I endorse
fully President Reagan's proposal to zero-fund the Legal Services
Corporation and to put funds for State-run legal services into a
social and community services block grant. It is my genuine belief
that there must be a closer working relationship with the State
and local bar associations before any plan works successfully. This
you will get by removing the program from Washington to the indi-
vidual States. State experimentation can ultimately bring forth the
best legal services policy to be employed for the benefit of the poor.
I oppose H.R. 3480, Legal Services Corporation Re-authorization.
SAM B. HALL, Jr.