What's happening
This bill prohibits the commercial bail bond business in New York, repeals related statutes, and establishes penalties for violations.
Why it matters
Eliminates for-profit bail bonds. By banning the commercial bail bond industry, the bill directly targets the system where individuals pay private companies to secure their release pretrial, often leading to long-term financial burdens for low-income people and their families.
Alters pretrial detention incentives. With no commercial bail bonds, accused individuals may be less pressured to pay non-refundable fees to secure release, potentially reducing the number of people jailed simply for inability to pay, and shifting the focus to other forms of bail or pretrial release.
Reduces risk of predatory practices. The bill removes a profit-driven industry that has faced criticism for exploiting vulnerable communities, including allegations of aggressive collection tactics, misleading contracts, and excessive fees.
Impacts associated professions and enforcement. By repealing statutes related to bail enforcement agents (“bounty hunters”), the bill eliminates a quasi-private policing force, which has historically operated with less oversight than public law enforcement, potentially improving accountability and reducing misuse of force.
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Who cares
Headline styles
Ban For-Profit Bail Bonds
Plain English, a few words. Used as the page title.
Sponsors
3 Co-sponsors
History
- Referred to codes
- Referred to codes
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Ban For-Profit Bail Bonds
In Assembly Committee · Codes · Sponsor Michael Blake
Full text
9 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
220
2019-2020 Regular Sessions
IN SENATE (Prefiled)
January 9, 2019
Introduced by Sens. BENJAMIN, HOYLMAN -- read twice and ordered printed, and when printed to be committed to the Committee on Codes
AN ACT to amend the criminal procedure law, the insurance law and the general business law, in relation to prohibiting the bail bond business; and to repeal certain provisions of such laws, relating thereto
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 520.10 of the criminal procedure law, paragraph (i) as amended by chapter 457 of the laws of 2005, is amended to read as follows:
1. The only authorized forms of bail are the following:
(a) Cash bail.
(b) [An insurance company bail bond.
(c)] A secured surety bond.
[(d)] (c) A secured appearance bond.
[(e)] (d) A partially secured surety bond.
[(f)] (e) A partially secured appearance bond.
[(g)] (f) An unsecured surety bond.
[(h)] (g) An unsecured appearance bond.
[(i)] (h) Credit card or similar device; provided, however, that notwithstanding any other provision of law, any person posting bail by credit card or similar device also may be required to pay a reasonable administrative fee. The amount of such administrative fee and the time and manner of its payment shall be in accordance with the system established pursuant to subdivision four of section 150.30 of this chapter or paragraph (j) of subdivision two of section two hundred twelve of the judiciary law, as appropriate.
§ 2. Subdivision 16 of section 500.10 of the criminal procedure law is REPEALED and subdivisions 17, 18, 19 and 20 are renumbered subdivisions 16, 17, 18 and 19.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01754-01-9
S. 220 2
§ 3. Paragraph (a) of subdivision 1 of section 520.30 of the criminal procedure law, as amended by chapter 384 of the laws of 1984, is amended to read as follows:
(a) The background, character and reputation of any obligor[, and, in the case of an insurance company bail bond, the qualifications of the surety-obligor and its executing agent]; and
§ 4. The article heading of article 68 of the insurance law is amended to read as follows:
[BAIL BONDS] CHARITABLE BAIL ORGANIZATIONS
§ 5. Sections 6801, 6802, 6803 and 6804 of the insurance law are REPEALED and section 6805 is renumbered section 6801.
§ 6. The general business law is amended by adding a new section 391-u to read as follows:
§ 391-u. Prohibit the bail bond business. 1. For purposes of this section "bail bond business" shall mean any person, partnership, or corporation engaged for profit in the business of furnishing bail, or to otherwise for compensation or other consideration furnish bail or funds or property to serve as bail or make bonds or enter into undertakings as surety for the appearance of persons charged with any criminal offense or violation of law or ordinance punishable by fine or imprisonment before any court of this state, or securing the payment of fines imposed and of costs assessed by such courts upon final disposition thereof. The business of bail bondsman shall be limited to the acts, transactions, and undertakings described in this subdivision.
2. It shall be unlawful for any person, partnership, or corporation to engage in the bail bond business as defined in subdivision one of this section.
3. Any person, partnership, or corporation who violates this section shall be guilty of a class A misdemeanor punishable by a fine not to exceed five hundred dollars, or by imprisonment of not more than one year, or by both such fine and imprisonment.
§ 7. The article heading of article 7 of the general business law, as amended by chapter 562 of the laws of 2000, is amended to read as follows:
PRIVATE INVESTIGATORS[, BAIL ENFORCEMENT
AGENTS] AND WATCH, GUARD AND PATROL AGENCIES
§ 8. Section 70-a of the general business law, as added by chapter 115 of the laws of 2015, is amended to read as follows:
§ 70-a. [Bail enforcement agents and watch] Watch, guard or patrol agencies. 1. The department of state shall have the power to issue separate licenses to [bail enforcement agents and to] watch, guard or patrol agencies. Nothing in this article shall prevent a private investigator licensed hereunder from performing the services of a watch, guard or patrol agency [or bail enforcement agent] as defined in this article; however, a watch, guard or patrol agency [or bail enforcement agent] may not perform the services of a private investigator as defined in this article.
2. No person, firm, company, partnership, limited liability company or corporation shall engage in the business of [bail enforcement agents or the business of] watch, guard or patrol agency, or advertise his, their or its business to be that of [bail enforcement agent or] watch, guard or patrol agency, notwithstanding the name or title used in describing such agency or notwithstanding the fact that other functions and services may also be performed for fee, hire or reward, without having first obtained from the department of state a license so to do, as hereinafter provided, for each bureau, agency, sub-agency, office and branch
S. 220 3
office to be owned, conducted, managed or maintained by such person, firm, company, partnership, limited liability company or corporation for the conduct of such business.
3. Any person, firm, company, partnership or corporation who violates any provision of this section shall be guilty of a class B misdemeanor.
§ 9. Subdivisions 1-a and 4 of section 71 of the general business law are REPEALED.
§ 10. The opening paragraph of section 72 of the general business law, as amended by chapter 562 of the laws of 2000, is amended to read as follows:
Application for licenses. Any person, firm, partnership, limited liability company or corporation intending to conduct the business of private investigator[, business of bail enforcement agent] or the business of watch, guard or patrol agency, and any person, firm, partnership, limited liability company or corporation intending to conduct the business of furnishing or supplying information as to the personal character of any person or firm, or as to the character or kind of the business and occupation of any person, firm or corporation, society or association or any person or group of persons, or intending to own, conduct, manage or maintain a bureau or agency for the above mentioned purposes, or while engaged in other lawful business activities also intending to engage in any one or more of the activities set forth in section seventy-one of this article except exclusively as to the financial rating, standing, and credit responsibility of persons, firms, companies or corporations or as to personal habits and financial responsibility of applicants for [insurance indemnity bonds or] commercial credit or of claimants under insurance policies shall, for each such bureau or agency and for each and every sub-agency, office and branch office to be owned, conducted, managed or maintained by such person, firm, partnership, limited liability company or corporation for the conduct of such business, file in the office of the department of state a written application, on forms provided by the department containing such information and documentation, including fingerprints, as the secretary of state may require by rule and regulation.
§ 11. Subdivision 1 of section 73 of the general business law, as amended by chapter 562 of the laws of 2000, is amended to read as follows:
1. The secretary of state shall have the power to enforce the provisions of this article and article seven-A of this chapter and upon complaint of any person, or on his own initiative, to investigate any violation thereof or to investigate the business, business practices and business methods of any person, firm, limited liability company, partnership or corporation applying for or holding a license as a private investigator[, bail enforcement agent] or watch, guard or patrol agency, if in the opinion of the secretary of state such investigation is warranted. Each such applicant or licensee shall be obliged, on request of the secretary of state, to supply such information, books, papers or records as may be required concerning his, their or its business, business practices or business methods, or proposed business practices or methods. Failure to comply with a lawful request of secretary shall be a ground for denying an application for a license, or for revoking, suspending, or failing to renew a license issued under this article.
§ 12. Paragraphs (a) and (b) of subdivision 1 of section 74 of the general business law, as amended by chapter 562 of the laws of 2000, paragraph (b) as further amended by section 104 of part A of chapter 62 of the laws of 2011, are amended to read as follows:
S. 220 4
(a) The application shall be accompanied by a non-refundable fee, payable to the department of state for the use of the state, for each certificate of license, as hereinbelow enumerated, issued to the applicant, if the applicant be an individual, of four hundred dollars for a license as private investigator [or bail enforcement agent] or a fee of three hundred dollars for a license as watch, guard or patrol agency, or if the applicant be a firm, partnership, limited liability company or corporation, a fee of five hundred dollars for a license as private investigator [or bail enforcement agent] or a fee of four hundred dollars for a license as watch, guard or patrol agency.
(b) When the application shall have been examined and such further inquiry and investigation made as the secretary of state shall deem proper, and when the secretary of state shall be satisfied therefrom of the good character, competency and integrity of such applicant, or, if the applicant be a firm or partnership, the individual members thereof, or if the applicant be a limited liability company, the individual members thereof, or if the applicant be a corporation, the president, secretary, treasurer and all other officers and all directors thereof, and each stockholder owning ten per centum or more of the stock and a period to ten days from the date of the filing of the application shall have passed, the department of state shall issue and deliver to such applicant a certificate of license to conduct such business and to own, conduct or maintain a bureau, agency, sub-agency, office or branch office for the conduct of such business on the premises stated in such application upon the applicant's executing, delivering and filing in the office of such department a surety company bond in the sum of ten thousand dollars; provided however, that [an applicant for a license as a bail enforcement agent shall execute, deliver and file with the office of such department a surety company bond in the sum of five hundred thousand dollars, conditioned for the faithful and honest conduct of such business by such applicant, which surety bond must be written by a company recognized and approved by the superintendent of financial services of the state, and approved by the department of state with respect to its form, manner of execution and sufficiency provided, further, however,] before a license is issued to a non-resident the applicant must file with the secretary of state a written consent to the jurisdiction of the courts of New York (i) in any case or cases arising from any contract for the performance of private investigative services as private investigator[, bail enforcement agent] or watch, guard or patrol agency, made within the state or to be performed, wholly or in part, within the state or in any way connected with the conduct of business within the state, and (ii) in any case or cases arising from any tort occurring within the state or occurring in connection with the business of the licensee within the state. The license as private investigator[, bail enforcement agent] or watch, guard or patrol agency granted pursuant to this article shall last for a period of two years, but shall be revocable at all times by the department of state for cause shown. Such bond shall be taken in the name of the people of the state of New York, and any person injured by the violation of any of the provisions of this article or by the wilful, malicious and wrongful act of the principal or employee may bring an action against such principal, employee or both on said bond in his own name to recover damages suffered by reason of such wilful, malicious and wrongful act. In each and every suit, or prosecution arising out of this article, the agency of any employee as to the employment and as to acting in the course of his employment, shall be presumed. The license certificate shall be in a
S. 220 5
form to be prescribed by the secretary of state and shall specify the full name of the applicant, the location of the principal office or place of business and the location of the bureau, agency, sub-agency, office or branch office for which the license is issued, the date on which it is issued, the date on which it will expire and the names and residences of the applicant or applicants filing the statement required by section seventy-two of this article upon which the license is issued and in the event of a change of any such address or residence the department of state shall be duly notified in writing of such change within twenty-four hours thereafter, and failure to give such notification shall be sufficient cause for revocation of such license. No such license as private investigator[, bail enforcement agent] or watch, guard or patrol agency shall be issued to a person under the age of twenty-five years.
§ 13. Section 74-a of the general business law is REPEALED.
§ 14. Section 80 of the general business law, as amended by chapter 562 of the laws of 2000, is amended to read as follows:
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the criminal procedure law, the insurance law and the general business law, in relation to prohibiting the bail bond business; and to repeal certain provisions of such laws, relating thereto
Purpose
To ban commercial bail bonds, bond enforcement agents, and bail bond companies
Summary of provisions
Summary of Provisions:
Read the full memo (764 words)
§ 1: Removes subdivision 1 of section 520.1 of the Criminal Procedure Law which lists insurance company bonds as an authorized form of bail.
§ 2: Removes subdivision 16 of the Criminal Procedure Law 500.10, which defines an insurance company bail bond.
§ 3: Removes references in the Criminal Procedure Law 520.30 to the character of an insurance company bail bond for a court's determination of a bail bond's reliability or merit.
§ 4: Strikes reference to Bail Bonds in the Insurance Law, leaving only reference to charitable bail organizations.
§ 5: Repeals references in Insurance Law to bail bond businesses, professional bondsmen and their licensing, and premiums or compensation for them.
§ 6: Adds new section 391-u to the General Business Law to explicitly prohibit the bail bond business and sets violation as a class A misde- meanor.
§ 7-8: Removes the General Business Law section 70-a references to Bail Enforcement Agents as entities to be licensed by the NYS Department of State and sets a penalty for acting as a Bail Enforcement Agent as a class B misdemeanor.
§ 9: Removes General Business Law section 71 para.1-a that defines a bail enforcement agent.
§ 10: Removes General Business Law section 72 references to licensing of bail enforcement agents and insurance indemnity bonds.
§ 11: Removes General Business Law section 73 reference to the
Secretary of State's authority to investigate a bail enforcement agent.
§ 12: Removes General Business Law section 74 references to licensing fees and bonding for bail enforcement agents.
§ 13: Repeals General Business Law section 74-a, which describes the way that a bail enforcement agent shall give notification to take a person into custody.
§ 14: Removes General Business Law section 80 references to the display of licenses and certification of bail enforcement agents.
§ 15: Removes General Business Law section 81 references to the behavior of bail enforcement agents and their employees.
§ 16: Removes General Business Law section 83 reference to the prohibi- tion of law enforcement officers or act as a bail enforcement agent.
§ 17: Removes General Business Law section 84 references to the prohibi- tion of a bail enforcement agent's having a badge. 18: States date of effect as 180 days after becoming law. EXISTING LAW: Current law allows for-profit lending for bail and private enforcement of bail bond contracts.
Justification
The commercial bail bond industry is a profit-making business that is based on profiting from people of limited resources who are the object of the criminal justice process. By their very nature, these businesses put additional non judicial and often extreme financial strain upon the accused, their family members and the community. This unnecessary strain is external to the process of a balanced justice process. Moreover, people of limited means are the primary clients of the commercial bail bond business, which violates the civic equality that is part of any fair and impartial justice system. Just as New York State has seen fit to outlaw private prisons from profiting from the criminal justice system, the State should also outlaw private companies from profiting from bail and having a business that is places extra strain and hardship upon those who are of limited means.
As currently written, the state's bail law allows judges to set bail in eight forms other than commercial bail bonds. All of these forms of bail are paid directly to the court, thereby avoiding the non-refundable fees and significant amounts of collateral often charged by commercial bail companies. According to the New York City Comptroller, in FY 2017 commercial bail companies in New York City alone received between $16 and $27 million in non-refundable fees that could have been avoided had alternative forms of bail been utilized. Given that studies suggest that the less financially onerous forms of bail that are already authorized by state law are just as effective at ensuring defendants appear for trial and also result in more people being able to post bail at arraign- ment, removing commercial bail bonds as an authorized form of bail can be done without harming the integrity of the pretrial justice process.
Legislative history
S.8146/A.10394
Fiscal implications
None
Local fiscal implications
None
Effective date
180 Days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.