What's happening
This bill restricts fees and practices for immigration bond agents, adds disclosure requirements, and mandates transparency for legal service referrals.
Why it matters
Limits the fees charged for ankle monitors or similar devices. Bond agents cannot profit from required monitoring devices—they can only charge the actual maintenance and operating costs, making the process less financially burdensome for immigrants.
Protects health and safety of those monitored. The bill ensures that, in cases of medical necessity or reasonable fear of such, immigrants can have monitoring devices removed or replaced without extra fees or contract penalties, reducing health risks and coercive practices.
Requires clear disclosure of legal rights and services. Contracts must inform people that they have a right to a court hearing to lower their bond, and that they are not obligated to use any particular legal provider, helping prevent misinformation and coercion.
Increases transparency in legal service referrals. If a bond provider refers clients to a lawyer or legal service with which they have a financial relationship, they must disclose payment sources and inform clients of the right to choose or fire their attorney, helping prevent conflicts of interest and ensuring access to unbiased legal counsel.
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Who cares
Headline styles
Limit Fees on Immigration Bonds
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer protection
- Referred to rules
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.
Limit Immigration Bond Fees
In Assembly Committee · Economic Development · Sponsor Harvey Epstein
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6521
2019-2020 Regular Sessions
IN SENATE
June 14, 2019
Introduced by Sen. BAILEY -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the general business law, in relation to immigration bonds and disclosures for providers of immigrant assistant services
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 460-d-1 to read as follows:
§ 460-d-1. Restrictions on bonds. 1. (a) No bond agent or person who underwrites or insures the provision of an immigration or other bail bond who requires the use of an ankle monitor or other homing device as a condition for the provision of such a bond may charge any fee for such monitor or device that exceeds the cost of maintaining and operating such monitor or device charged to the bond agent or person who underwrites or insures the provision of the bond.
(b) Any fee associated with such monitor or device charged pursuant to paragraph (a) of this subdivision shall be included in calculating the legally permissible non-refundable payment for a given bond.
(c) No bond agent or person who underwrites or insures the provision of an immigration or other bail bond who requires the use of an ankle monitor or other homing device as a condition for the provision of such a bond may prohibit such monitor or device from being removed, or charge any fee for such removal or subsequent replacement, in case of a medical necessity or reasonable fear of a medical necessity. Any statement to the contrary, whether made in writing or orally, renders the contract voidable by the individual for whom the bond is provided.
2. No bond agent or person who underwrites or insures the provision of an immigration or other bail bond shall charge a premium or receive compensation in excess of the limits established pursuant to section six thousand eight hundred four of the insurance law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11870-01-9
S. 6521 2
§ 2. Subdivision 3 of section 460-b of the general business law is amended by adding a new paragraph (m) to read as follows:
(m) For any written contract for the provision of an immigration bond, the statement: "You have the right to a court hearing to lower your bond amount, though the hearing could result in continued detention."
§ 3. Section 460-d of the general business law is amended by adding a new subdivision 16 to read as follows:
16. Provide a referral or contact information for a lawyer or legal services provider that is owned at least partly by the provider or an entity affiliated with the provider without:
(a) disclosing in writing the source of payment to the lawyer or legal services provider for the services rendered; and
(b) including the written statement: "Using this lawyer or legal services provider is not a requirement of bond. If you choose to hire this lawyer or legal services provider, you have the right to fire them at any time and seek your own counsel. Free legal services may be available by contacting the New York state New Americans hotline at 1-800-566-7636."
§ 4. This act shall take effect on the sixtieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the general business law, in relation to immigration bonds and disclosures for providers of immigrant assist- ant services
Purpose
The purpose of this bill is to increase transparency and fairness in the immigration bond industry.
Summary of specific provisions
Section 1 amends the general business law by adding a new section 460-d-1, which (a) restricts the amount that can be charged to an indi- vidual who must wear an ankle monitor or homing device as a condition of an immigration or other bail bond, and (b) prohibits a fee for the removal and subsequent replacement of the device in case of a medical necessity or reasonable fear of one.
Read the full memo (1,040 words)
Section 2 amends subdivision 3 of section 460-b of the general business law by adding a new paragraph (m) requiring written contracts for the provision of an immigration bond to contain a statement explaining the right to a court hearing to lower the bond amount as well as the poten- tial outcomes of such a hearing
Section 3 amends section 460-d of the general business law by adding a new subdivision 16 requiring providers to make a written disclosure about the source of payment to a lawyer or legal services provider that is partly-owned by the provider or an affiliated entity. Any referral to a lawyer or legal services provider must include a written statement explaining that hiring the referral is voluntary and the contact infor- mation for the New Americans hotline to obtain free legal services.
Section 4 provides the effective date.
Existing law
The law currently does not regulate the use of ankle monitors.
Justification
On average, more than 8,000 immigrants are detained in New York State. They are housed in as many as 76 different detention facilities across the state. In New York, the median dollar amount of bonds granted to individuals in immigration cases is approximately $7,500, which is one of the highest rates in the country. It is 50 percent higher than the median bail set in felony criminal cases in New York City, and nearly seven times more than in non-felony cases.
Unlike defendants in criminal court, immigrants in detention must either put up their entire bond in cash, or turn to "surety bonds," which require the detained immigrant to pay a surety or bond company a non-re- fundable percentage of the bond amount (usually 15-20%). Many immigrants who cannot afford a cash bond turn to immigration bond companies for a surety bond, driving rapid growth in the immigration bond sector in recent years.
Many states, including New York, have reformed cash bail and regulated the bail bond sector. However, bail bond companies - who historically have not issued immigration bonds - are turning to detained immigrants as a new market to make up for lost revenue.
One of the most serious concerns about the for-profit immigration bond sector is excessive fees. Clients of for-profit immigration bond compa- nies must pay thousands of dollars up front, and pay hundreds of dollars more in fees every month thereafter. Over time, these payments can exceed the cost of the initial bond, and, unlike cash bonds, none of these payments are refundable a fact that many clients of for-profit immigration bond companies do not understand until it is too late.
One of the largest for-profit immigration bond companies, Libre by Nexus, charges bailees approximately $420 each month as "operating fees" on the electronic ankle monitors the entity requires them to wear. The cost of operating these devices has been estimated to be as much as $120 per month, which means that companies like Libre by Nexus are making mandatory rent paid by detained immigrants on their own ankle shackles into a profit center.
Because the average wait time in New York State immigration courts is over 2 years, detained immigrants who contract with Libre by Nexus may end up paying over $10,000 in fees for ankle shackle monitoring alone. Again, these fees are not refundable, even if the immigrant prevails in court.
Clients of for-profit immigration bond companies have reported that they did not fully understand the contracts they entered into. They have further claimed that contract documents were not translated into their language, and that they were led to believe the fees they paid to immi- gration bond companies were refundable.
Clients have also reported that they were falsely informed they could be deported or returned to detention if they failed to make payments to immigration bond companies.
Some clients of for-profit immigration bond companies have reported that (a) they experienced serious medical conditions related to their ankle monitors, (b) they were told they had to keep the ankle shackle on even during a pregnancy, and (c) they were told they would have to pay $4,000 in fees (several times the actual cost of the device) if the device were lost or damaged, including being cut off by medical personnel.
Libre by Nexus refers immigration bond clients to Nexus Caridades, a not-for-profit affiliated with the company that provides free legal representation in immigration proceedings. While the company touts this arrangement as purely charitable, it creates a significant risk of legal conflict of interest in which immigration attorneys funded by Libre may have an incentive to act in the best interests of the company rather than their clients.
Finally, government oversight agencies have expressed growing concern over abusive and fraudulent practices by for-profit immigration bond companies. The attorneys-general of New York, Virginia, and Washington State launched investigations into Libre by Nexus, as did the federal Consumer Financial Protection Bureau, before that investigation was shut down by the current administration. The industry has aggressively resisted oversight and regulation. Libre by Nexus' refusal to turn over documents on their contracting practices prompted the New York Attorney General's Office to file a motion demand- ing that the CEO of Libre by Nexus be jailed for criminal contempt.
This modest legislation would bring badly needed oversight to a sector that is rife with abuses by reigning in inflated costs charged by providers and requiring more transparency in contracts between providers and bailees.
Fiscal impact on the state
None.
Prior legislative history
New Bill.
Effective date
60 days after becoming law.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.