IB
Union Calendar No. 136
104TH CONGRESS
1ST SESSION
H. R. 2277
[Report No. 104–255]
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 of South
Carolina) introduced the following bill; which was referred to the Commit-
tee on the Judiciary
SEPTEMBER 21, 1995
Additional sponsors: Mr. MILLER of Florida and Mr. ROHRABACHER
SEPTEMBER 21, 1995
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on September 7, 1995]
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 Representa-
tives 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 con-
tracts with an individual described in
clause (i) to provide qualified legal services.
Nothing in this subparagraph shall be inter-
preted to prohibit a qualified legal service pro-
vider 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; or
‘‘(ii) has been suspended or disbarred
from the practice of law for misconduct, in-
competence, or neglect of a client in any
State; or
if such individual has a criminal charge pending
on the date of the submission of a bid for a con-
tract under section 4. In determining whether to
award a contract under section 4, a State may
also consider, to the extent the State considers it
relevant in evaluating the qualifications of an
applicant, whether an applicant has been found
in contempt of a court of competent jurisdiction
in any State or Federal court or has been sanc-
tioned under Federal Rule of Civil Procedure 11
or an equivalent State rule of procedure applica-
ble in civil actions.
‘‘(C) 
ADDITIONAL
REQUIREMENTS.—No
State may impose a requirement on an individ-
ual 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 rep-
resentation, 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 quali-
fied 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 in the 3 months prior to seeking legal assistance
from a qualified legal service provider had an income
from any source which 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)).
‘‘(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, in-
cluding 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 quali-
fied 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 un-
less 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;
‘‘(xii) probate;
‘‘(xiii) divorce or separation;
‘‘(xiv) employment matters; or
‘‘(xv) consumer fraud.
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 this
subparagraph unless such additional causes of
action are described in clause (i) of subpara-
graph (B).
‘‘(B) Such term does not include—
‘‘(i) a class action under Federal,
State, or local law; or
‘‘(ii) any challenge to the constitu-
tionality of any statute.
‘‘(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 gov-
erning 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
direct the Office of Justice Programs to make grants to
States for the provision of qualified legal services and to
insure compliance with the requirements of this Act. To re-
ceive 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 sub-
section (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 re-
ceive a grant under subsection (a) unless the State has cer-
tified 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 partici-
pate in any other way in litigation, that is intended
to or has the effect of altering, revising, or reappor-
tioning 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, amend-
ment, 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, referen-
dum, 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 demonstra-
tions, 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 abor-
tion;
‘‘(6) to participate in any litigation or provide
any representation on behalf of a local, State, or Fed-
eral prisoner;
‘‘(7) to pay for any personal service, advertise-
ment, telegram, telephone communication, letter, or
printed or written matter or to pay administrative
expenses or related expenses, associated with an activ-
ity prohibited in paragraph (1), (2), (3), (4), (5), or
(6);
‘‘(8) to solicit in-person any client for the pur-
pose 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 quali-
fied 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 pro-
vider 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) EVASION.—Any attempt to avoid or otherwise
evade the requirements of this Act is prohibited.
‘‘(i) 
AUTHORIZATION
OF
APPROPRIATIONS.—For
grants under subsection (a) there are authorized to be ap-
propriated to the Attorney General $278,000,000 for fiscal
year 1996, $250,000,000 for fiscal year 1997, 175,000,000
for fiscal year 1998, and $100,000,000 for fiscal year 1999.
‘‘SEC. 4. CONTRACTS.
‘‘(a) IN GENERAL.—Each State which receives a grant
under section 3(a) shall make funds under the grant avail-
able 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 serv-
ice areas within the State. Such service areas shall be
the counties or parishes within a State but such au-
thority may combine contiguous counties or parishes
to form a service area to assure the adequate provi-
sion 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 in-
cludes 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 pop-
ulation.
‘‘(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 con-
tract 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 accord-
ance with section 5, the greatest number of hours of quali-
fied legal services provided by lawyers or paralegals in such
area. In determining which applicant is best qualified, a
State shall consider the reputations of the principals of the
applicant, the quality, feasibility, and cost effectiveness of
plans submitted by the applicant for the delivery of quali-
fied legal services to the qualified clients to be served, and
a demonstration of willingness to abide by the restrictions
of this Act.
‘‘(e) FORM AND BILLING.—A State contract awarded
under subsection (d) shall be in such form as the State re-
quires. 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 pro-
vided 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 QUALI-
FIED 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 quali-
fied 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 5 years
after the resolution of client’s cause of action or 5 years
after the termination of the contract under which services
were provided to such client or as provided by the applica-
ble code of professional responsibility.
‘‘(d) TIME RECORDS.—A qualified legal service pro-
vider shall keep daily time records of the provision of serv-
ices to a qualified client in one tenth of an hour increments
identifying such client, the general nature of the work per-
formed 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 at-
torney work product privilege as a condition to receiving
such service. The waiver shall be limited to the extent nec-
essary to determine the quantity and quality of the service
rendered by the qualified legal service provider and compli-
ance with this Act. Such waiver shall not constitute a waiv-
er as to other parties. The use of such waiver or any infor-
mation obtained under such waiver for any purpose other
than determining the quantity and quality of the service
of a provider or compliance with this Act shall be strictly
prohibited.
‘‘(g) RECORDS OF QUALIFICATIONS.—A qualified legal
service provider shall make and maintain records detailing
the basis upon which the provider determined the qualifica-
tions of qualified clients. Such records shall be made and
maintained for 3 years following the termination of a con-
tract 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 Attorney General, the General Ac-
counting Office, or the authority which awarded a contract
to such provider. Any such audit may be conducted at the
(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 bal-
ances of funds appropriated for the purpose of carry-
ing out legal services programs and activities under
the Legal Services Corporation Act.
(e) EFFECTIVE DATE.—The amendment made by sec-
tion 2 shall take effect on the date of the enactment of this
Act.
HR 2277 RH——2