Sec. 1002. As used in this title the term--

(1) "Board" means the Board of Directors of the Legal Services Corporation;

(2) "Corporation" means the Legal Services Corporation established under this title;

(3) "eligible client" means any person financially unable to afford legal assistance;

(4) "Governor" means the chief executive officer of a State;

(5) "legal assistance" means the provision of any legal services consistent with the purposes and provisions of this title;

(6) "recipient" means any grantee, contractee, or recipient of financial assistance described in clause (A) of section 1006(a)(1);

Sec. 1003(a). There is established in the District of Columbia a private nonmembership nonprofit corporation, which shall be known as the Legal Services Corporation, for the purpose of providing financial support for legal assistance in noncriminal proceedings or matters to persons financially unable to afford legal assistance.
 

GRANT AND CONTRACTS

Sec. 1007(a). With respect to grants or contracts in connection with the provision of legal assistance to eligible clients under this title, the Corporation shall--

(1) insure the maintenance of the highest quality of service and professional standards, the preservation of attorney-client relationships, and the protection of the integrity of the adversary process from any impairment in furnishing legal assistance to eligible clients;

(2) (A) establish, in consultation with the Director of the Office of Management and Budget and with the Governors of the several States, maximum income levels (taking into account family size, urban and rural differences, and substantial cost-of-living variations) for individuals eligible for legal assistance under this title;

(B) establish guidelines to insure that eligibility of clients will be determined by recipients on the basis of factors which include--

(i) the liquid assets and income level of the client,
(ii) the fixed debts, medical expenses, and other factors which affect the client's ability to pay,
(iii) the cost of living in the locality, and
(iv) such other factors as relate to financial inability to afford legal assistance, which may include evidence of a prior determination that such individual's lack of income results from refusal or unwillingness, without good cause, to seek or accept an employment situation; and

(C) insure that (i) recipients, consistent with goals established by the Corporation, adopt procedures for determining and implementing priorities for the provision of such assistance, taking into account the relative needs of eligible clients for such assistance (including such outreach, training, and support services as may be necessary), including particularly the needs for service on the part of significant segments of the population with eligible clients with special difficulties of access to legal services or special legal problems (including elderly and handicapped individuals); and (ii) appropriate training and support services are provided in order to provide such assistance to such significant segments of the population of eligible clients;

Sec.1008(a). The Corporation is authorized to require such reports as it deems necessary from any grantee, contractor or person or entity receiving financial assistance under this title regarding activities carried out pursuant to this title.

(b) The Corporation is authorized to prescribe the keeping of records with respect to funds provided by grant or contract and shall have access to such records at all reasonable times for the purpose of insuring compliance with the grant or contract or the 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. Such report shall include a description of services provided pursuant to section 1007(a)(2)(C)(i) and (ii).
 

Comments:
Section 1008(c) requires an annual report to the President and Congress. It would greatly improve Corporation accountability to the President, Congress, and public if this important section of the LSC Act was amended to require the Corporation to submit an annual performance report that identifies the total number of cases open at the end of the year and closed during the year for the entire program. This would allow the President, Congress, and public to see what the program is producing, in terms of cases produced, for the several hundred million dollars invested in the program each year. Requiring Corporation officials to certify the annual report as accurate could further strengthen the Act.

The current wording of the Act as it pertains to the annual reporting requirement is very ambiguous (see section 1007(a)(2)(C)(I) and (ii) above) and does not afford the President, Congress, and public the level of visibility needed to properly oversee program performance.

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