[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2277 Introduced in House (IH)]

  1st Session
                                H. R. 2277

 To abolish the Legal Services Corporation and provide the States with 
                money to fund qualified legal services.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 7, 1995

Mr. Gekas (for himself, Mr. Armey, Mr. Hyde, and Mr. Inglis) introduced 
    the following bill; which was referred to the Committee on the 
                               Judiciary

_______________________________________________________________________

                                 A BILL


 
 To abolish the Legal Services Corporation and provide the States with 
                money to fund qualified legal services.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Legal Aid Act of 1995''.

SEC. 2. LEGAL SERVICES CORPORATION

    The Legal Services Corporation Act (42 U.S.C. 2996-2996l) is 
amended to read as follows:
``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Legal Aid Grant Act'.

``SEC. 2. DEFINITIONS.

    ``For purposes of this Act:
            ``(1) Qualified legal service provider.--
                    ``(A) In general.--The term `qualified legal 
                service provider' means--
                            ``(i) any individual who is licensed to 
                        practice law in a State for not less than 3 
                        calendar years, who has practiced law in such 
                        State not less than 3 calendar years, and who 
                        is so licensed during the period of a contract 
                        under section 4; or
                            ``(ii) a person who employs or contracts 
                        with an individual described in clause (i) to 
                        provide qualified legal services.
                Nothing in this subparagraph shall be interpreted to 
                prohibit a qualified legal service provider from 
                employing an individual who is not described in clause 
                (i) to assist in providing qualified legal services.
                    ``(B) Not qualified.--No individual shall be 
                considered, or employed by, a qualified legal service 
                provider if such individual during the 10 years 
                preceding the submission of a bid for a contract under 
                section 4--
                            ``(i) has been convicted of a felony;
                            ``(ii) has been suspended or disbarred from 
                        the practice of law for misconduct, 
                        incompetence, or neglect of a client in any 
                        State;
                            ``(iii) has been found in contempt of a 
                        court of competent jurisdiction in any State or 
                        Federal court; or
                            ``(iv) has been sanctioned under Federal 
                        Rule of Civil Procedure 11 or an equivalent 
                        State rule of procedure applicable in civil 
                        actions; or
                if such individual has a criminal charge pending on the 
                date of the submission of a bid for a contract under 
                section 4.
                    ``(C) Additional requirements.--No State may impose 
                a requirement on an individual or person as a condition 
                to bidding on a contract under section 4 or to being 
                awarded such a contract which requirement is different 
                from any other requirement of subparagraph (B).
            ``(2) Qualified legal services.--The term `qualified legal 
        services' means--
                    ``(A) mediation, negotiation, arbitration, 
                counseling, advice, instruction, referral, or 
                representation, and
                    ``(B) legal research or drafting in support of the 
                services described in subparagraph (A),
        provided by or under the supervision of a qualified legal 
        service provider to a qualified client for a qualified cause of 
        action.
            ``(3) Qualified client.--The term `qualified client' means 
        any individual who is a United States citizen or an alien 
        admitted for permanent residence who resided for more than 50 
        percent of the most recent full month in a household the income 
        of which from any source, which was received or held for the 
        benefit of a member of the household, was equal to or less than 
        the poverty line established under section 673(2) of the 
        Community Services Block Grant Act (42 U.S.C. 9902(2)). The 
        term `household' means a dwelling occupied by at least one 
        adult.
            ``(4) Qualified cause of action.--
                    ``(A) The term `qualified cause of action' means 
                only a civil cause of action which results only from--
                            ``(i) landlord and tenant disputes, 
                        including an eviction from housing except an 
                        eviction where the prima facie case for the 
                        eviction is based on criminal conduct;
                            ``(ii) foreclosure of a debt on a qualified 
                        client's residence;
                            ``(iii) the filing of a petition under 
                        chapter 7 or 12 of title 11, United States 
                        Code, or under chapter 13 of such title unless 
                        a petition of eviction has preceded the filing 
                        of such petition;
                            ``(iv) enforcement of a debt;
                            ``(v) an application for a statutory 
                        benefit;
                            ``(vi) appeal of a denial of a statutory 
                        benefit on a statutory ground;
                            ``(vii) child custody and support;
                            ``(viii) action to quiet title;
                            ``(ix) activities involving spousal or 
                        child abuse on behalf of the abused party;
                            ``(x) an insurance claim;
                            ``(xi) competency hearing; or
                            ``(xii) probate.
                    ``(B) Such term does not include--
                            ``(i) a class action under Federal, State, 
                        or local law; or
                            ``(ii) any challenge to the 
                        constitutionality of any statute.
                Additional causes of action qualify as a qualified 
                cause of action if they arise out of the same 
                transaction as a cause of action described in 
                subparagraph (A) unless such additional causes of 
                action are described in clause (i) or (ii).
            ``(5) State.--The term `State' means any State of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
        Trust Territory of the Pacific Islands, and any other territory 
        or possession of the United States and includes any recognized 
        governing body of an Indian Tribe or Alaskan Native Village 
        that carries out substantial governmental powers and duties.

``SEC. 3. GRANTS.

    ``(a) Grant Authority.--The Attorney General shall make grants to 
States for the provision of qualified legal services. To receive a 
grant under this subsection a State shall make an application to the 
Attorney General. Such an application shall be in such form and 
submitted in such manner as the Attorney General may require.
    ``(b) Poverty Line.--Grants shall be made under subsection (a) to 
States in such proportion as the number of residents of each State 
which receive a grant who live in households having income equal to or 
less than the poverty line established under section 673(2) of the 
Community Services Block Grant Act (42 U.S.C. 9902(2)) bears to the 
total number of residents in the United States living in such 
households.
    ``(c) Retention of Grant Funds.--Each State may in any fiscal year 
retain for administrative costs not more than 5 percent of the amount 
granted to the State under subsection (a) in such fiscal year. The 
remainder of such grant shall be paid under contracts to qualified 
legal service providers in the State for the provision in the State of 
qualified legal services. If a State which has received a grant under 
subsection (a) has at the end of any fiscal year funds which have not 
been obligated, such State shall return such funds to the Attorney 
General.
    ``(d) Requirements of This Act.--No State may receive a grant under 
subsection (a) unless the State has certified to the Attorney General 
that the State will comply with and enforce the requirements of this 
Act.
    ``(e) Limitation on Use of Grant Funds.--None of the funds provided 
under subsection (a) shall be used by a qualified legal service 
provider--
            ``(1) to make available any funds, personnel, or equipment 
        for use in advocating or opposing any plan or proposal or 
        represent any party or participate in any other way in 
        litigation, that is intended to or has the effect of altering, 
        revising, or reapportioning a legislative, judicial, or 
        elective district at any level of government, including 
        influencing the timing or manner of the taking of a census;
            ``(2) to attempt to influence the issuance, amendment, or 
        revocation of any executive order, regulation, policy, or 
        similar promulgation by any Federal, State, or local agency;
            ``(3) to attempt to influence the passage or defeat of any 
        legislation, constitutional amendment, referendum, initiative, 
        confirmation proceeding, or any similar procedure of the 
        Congress of the United States or by any State or local 
        legislative body;
            ``(4) to support or conduct training programs for the 
        purpose of advocating particular public policies or encouraging 
        political activities, labor or anti-labor activities, boycotts, 
        picketing, strikes, and
         demonstrations, including the dissemination of information 
about such policies or activities;
            ``(5) to participate in any litigation, lobbying, 
        rulemaking or any other matter with respect to abortion;
            ``(6) to participate in any litigation or provide any 
        representation on behalf of a local, State, or Federal 
        prisoner;
            ``(7) to pay for any personal service, advertisement, 
        telegram, telephone communication, letter, or printed or 
        written matter or to pay administrative expenses or related 
        expenses, associated with an activity prohibited in paragraph 
        (1), (2), (3), (4), (5), or (6);
            ``(8) to solicit in-person any client for the purpose of 
        providing any legal service; or
            ``(9) to pay any voluntary membership dues to any private 
        or non-profit organization.
    ``(f) Limitation on Use of State Funds.--A State which receives a 
grant under subsection (a) and which also distributes State funds for 
the provision of legal services shall require that such State funds be 
used to provide qualified legal services to qualified clients and shall 
impose on the use of such State funds the limitations prescribed by 
subsection (e).
    ``(g) Attorneys' Fees.--A qualified legal service provider of any 
qualified client or any client of such provider may not claim or 
collect attorneys' fees from parties to any litigation initiated by 
such client.
    ``(h) Authorization of Appropriations.--For grants under subsection 
(a) there are authorized to be appropriated to the Attorney General 
$278,000,000 for fiscal year 1996 and $141,000,000 for fiscal year 
1997.

``SEC. 4. CONTRACTS.

    ``(a) In General.--Each State which receives a grant under section 
3(a) shall make funds under the grant available for contracts entered 
into for the provision of qualified legal services within the State.
    ``(b) Bids.--
            ``(1) Authority.--The Governor of each State shall 
        designate the authority of the State which shall be responsible 
        for soliciting and awarding bids for contracts for the 
        provision of qualified legal services within such State.
            ``(2) Service area.--The authority of a State designated 
        under paragraph (1) shall designate service areas within the 
        State. Such service areas shall be the counties or parishes 
        within a State but such authority may combine contiguous 
        counties or parishes to form a service area to assure the 
        adequate provision of qualified legal services.
            ``(3) Non-english-speaking clients.--If 5 percent or more 
        of the population of qualified clients in a qualified legal 
        service provider's service area includes individuals whose 
        household language is other than English, the qualified legal 
        service provider shall include provision in the provider's bid 
        for satisfying the communication needs of that portion of such 
        population.
    ``(c) Availability of Funds.--A State shall allocate grant funds 
for contracts for the provision of qualified legal services in a 
service area on the same basis as grants are made available to States 
under section 3(b).
    ``(d) Contract Awards.--A State shall award a contract for the 
provision of qualified legal services in a service area to the 
applicant who is best qualified, as determined by the State, and who in 
its bid offers to provide, in accordance with section 5, the greatest 
number of hours of qualified legal services in such area.
    ``(e) Form and Billing.--A State contract awarded under subsection 
(d) shall be in such form as the State requires. The contract shall 
provide for the rendering of bills supported by time records at the 
close of each month in which qualified legal services are provided. A 
State shall make payment to a qualified legal service provider at the 
contract rate only for hours of qualified legal services provided and 
supported by appropriate records. The contract rate shall be the total 
dollar amount of the contract divided by the total hours bid by the 
qualified legal service provider. A State shall have 60 days to make 
full payment of such bills.

``SEC. 5. REQUIREMENTS FOR THE PROVISION OF QUALIFIED LEGAL SERVICES 
              UNDER A CONTRACT.

    ``(a) Term.--The term of a contract entered into under section 4 
shall be not more than 1 year.
    ``(b) Manner of Provision of Services.--A qualified legal service 
provider shall service the legal needs of qualified clients under a 
contract entered into under section 4 in a professional manner 
consistent with applicable law.
    ``(c) Case Files.--A qualified legal service provider shall 
maintain a qualified client's case file, including any pleadings and 
research, at least until the later of 3 years after the resolution of 
client's cause of action or 3 years after the termination of the 
contract under which services were provided to such client.
    ``(d) Time Records.--A qualified legal service provider shall keep 
daily time records of the provision of services to a qualified client 
in one tenth of an hour increments
 identifying such client, the general nature of the work performed in 
each increment, and the account which will be charged for such work.
    ``(e) Questionnaire.--Each qualified client shall be provided a 
self-mailing customer satisfaction questionnaire in a form approved by 
the authority granting the contract under section 4 which identifies 
the qualified legal service provider and is preaddressed to such 
authority.
    ``(f) Attorney Client Privilege.--Any qualified client who receives 
legal services other than advice or legal services provided by mail or 
telephone shall execute with respect to such services a waiver of 
attorney client and attorney work product privilege as a condition to 
receiving such service. The waiver shall be limited to the extent 
necessary to determine the quantity and quality of the service rendered 
by the qualified legal service provider.
    ``(g) Records of Qualifications.--A qualified legal service 
provider shall make and maintain records detailing the basis upon which 
the provider determined the qualifications of qualified clients. Such 
records shall be made and maintained for 3 years following the 
termination of a contract under section 4 for the provision of legal 
services to such clients.
    ``(h) Audits.--A qualified legal service provider shall consent to 
audits by the General Accounting Office and the authority which awarded 
a contract to such provider. Any such audit may be conducted at the 
provider's principal place of business. Such an audit shall be limited 
to a determination of whether such provider is meeting the requirements 
of this Act and the provider's contract under section 4.
    ``(i) Recovery of Fees.--A contract shall provide for the recovery 
of reasonable attorneys' fees in any action brought to compel payment 
to a qualified legal service provider under a contract under section 4. 
Such fees shall not be payable out of funds provided under this Act.
    ``(j) Termination and Recovery of Funds.--The authority which 
awarded a contract shall terminate a qualified legal service provider 
who fails to abide by the terms of this Act. A breach of contract by a 
qualified legal service provider shall entitle the authority to 
terminate the contract, to award a new contract, and to recover any 
funds improperly expended by the provider, together with reasonable 
attorneys' fees and interest at the statutory rate in the State for 
interest on judgments. If such a breach was willful, the provider shall 
pay to the authority which awarded the contract damages equal to the 
one half of the amount improperly expended by the provider.''.

SEC. 3. TRANSITION AND EFFECTIVE DATE.

    (a) Termination.--The Legal Services Corporation shall terminate on 
the expiration of 6 months after the date of the enactment of this Act.
    (b) Pending Cases.--During the 6-month period after the termination 
of the Legal Services Corporation, the Attorney General may make funds 
available to grantees under the Legal Services Corporation Act to bring 
to a completion any legal action filed in a State or Federal court on 
or before the date of the enactment of this Act. The Attorney General 
shall use funds appropriated to the Attorney General under section 3(h) 
of the Legal Aid Grant Act to fund such grantees. Such funds for such 
purpose may not exceed 1 percent of the amount appropriated to the 
Attorney General under such section 3(h) for fiscal year 1996.
    (c) Transition.--Upon termination of such Corporation all assets, 
liabilities, obligations, property, and records employed directly or 
held or used primarily in connection with any function of the President 
of the Legal Services Corporation in carrying out legal services 
activities under the Legal Services Corporation Act shall be 
transferred to the Attorney General.
    (d) Action of the President.--Notwithstanding any other provision 
of law, upon termination of the Legal Services Corporation the 
President of the Legal Services Corporation shall take such action as 
may be necessary--
            (1) to assist the Attorney General in the initial 
        undertaking of the Attorney General's responsibilities under 
        the Legal Aid Grant Act; and
            (2) to transfer to the Attorney General for use under the 
        Legal Aid Grant Act all unexpended balances of funds 
        appropriated for the purpose of carrying out legal services 
        programs and activities under the Legal Services Corporation 
        Act.
    (e) Effective Date.--The amendment made by section 1 shall take 
effect on the date of the enactment of this Act.
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