NY State Senate Bill S7475B

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (17)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Dec 09, 2022	signed chap.673
Dec 02, 2022	delivered to governor
Jun 03, 2022	returned to senate passed assembly ordered to third reading rules cal.454 substituted for a7770c
Jun 01, 2022	referred to ways and means delivered to assembly passed senate ordered to third reading cal.1808 committee discharged and committed to rules
May 17, 2022	print number 7475b
May 17, 2022	amend and recommit to insurance
May 11, 2022	print number 7475a
May 11, 2022	amend (t) and recommit to insurance
Jan 05, 2022	referred to insurance
Oct 27, 2021	referred to rules

Votes

Bill Amendments

Original

B (Active)

Original

B (Active)

Co-Sponsors

S7475 - Details

See Assembly Version of this Bill:: A7770
Law Section:: Insurance Law
Laws Affected:: Add §§1123, 2140 & 2312, Ins L

S7475 - Summary

Provides for regulating immigration bail businesses including restrictions on who may operate such a business; provides for who may bring an action against an immigration bail business.

S7475 - Sponsor Memo

 
BILL NUMBER: S7475

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to providing for licens-
ing of an immigration bond business

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill increases oversight of the immigration bond industry and curbs
abusive practices.

 
SUMMARY OF PROVISIONS:

Section 6810 amends the insurance law by defining an immigration bond
business, and restricting the doing of an immigration bond business to
those authorized to do so by this chapter and in compliance with the
requirements of this chapter.

Section 6811 amends the insurance law by requiring the doing of an immi-
gration bond business to be licensed by the superintendent, requiring

every immigration bond business in the state to procure such a license,
and setting out procedures, conditions, and limitations on issuance of
such licenses.

Section 6812 amends the insurance law by imposing certain restrictions
on the doing of an immigration bond business in the state. It prohibits
immigration bond businesses from requiring electronic monitoring as a
condition of an immigration bond and requires immigration bond companies
to disclose the sources of funding for lawyers to which they refer immi-
gration bond clients and inform immigration bond clients that they have
a right to choose their own legal counsel.

Section 6813 amends the insurance law by restricting the maximum premium
or compensation that an immigration bond business may charge or receive
for issuing an immigration bond.

Section 6814 amends the insurance law by permitting any person injured
by reason of any violation of this article to bring an action to enjoin
such violation, for treble damages, or both, and permits recovery of
reasonable attorney's fees and costs.

Section 6815 provides for the severability of any clause found to be
invalid.

Section 6816 directs the superintendent to promulgate regulations imple-
menting this article, and provides the effective date.

 
JUSTIFICATION:

The scope of immigrant detention is massive. Across the country, more
than 25,000 immigrants were booked into detention in the first three
months of 2021 and there are nearly 14,000 in detention on a daily
basis. Hundreds of immigrant New Yorkers are detained in as many as 76
different detention facilities across the state.

In New York the median dollar amount of bonds granted in immigration
cases is $7,500, one of the highest in the country. This 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-refundable
percentage of the bond amount (usually 15-20%). Many immigrants who
cannot afford a cash bond turn to immigration bond companies for a sure-
ty bond, driving rapid growth in the immigration bond sector in recent
years.

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. 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.  Clients of for-profit
immigration bond companies have reported that they did not understand
the contracts they entered into, that contract documents were not trans-
lated into their language, and that they were led to believe fees they
paid to immigration 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.

For-profit immigration bond companies charge bailees as much as $420
each month as "operating fees" on the electronic ankle monitors it
requires them to wear. The actual cost of operating these devices has
been estimated in court documents as $120 per month, which means that
these companies 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 may end up paying over $10,000 in fees
for ankle monitoring fees alone. Again, these fees are not refundable,
even if the immigrant prevails in. court. Some clients of for-profit
immigration bond companies have reported that they experienced serious
medical conditions related to their ankle monitors, that they were told
they had to keep the ankle shackle on even during a pregnancy, and that
they were told that 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.

Of further concern, for-profit immigration bond companies have been
known to refer clients to "pro bono" law practices affiliated with the
company that provide free legal representation in immigration
proceedings. While the these arrangements can appear purely charitable,
they create a significant risk of legal conflict of interest, in which
immigration attorneys funded by immigration bond company may have an
incentive to act in the best interests of the company rather than their
clients.

This modest legislation would bring badly needed oversight to a sector
in which companies may be operating as unlicensed insurance agents and
which is rife with abuses by licensing and regulating immigration bond
businesses, reining in inflated fees, requiring more transparency in

contracts, and curbing the abusive practice of charging immigration bond
clients for their own electronic ankle shackles.

 
PRIOR LEGISLATIVE HISTORY:

2020: A8450/S6521 - referred to economic development / REFERRED TO
CONSUMER PROTECTION

2019: A8450/S6521 - referred to economic development / REFERRED TO

 
RULES FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Unknown.

 
EFFECTIVE DATE:
60 days after becoming law.

S7475 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7475
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 27, 2021
                                ___________
 
 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 insurance law, in relation to providing for  licens-
   ing of an immigration bond business
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new  article  68-A
 to read as follows:
                               ARTICLE 68-A
                         IMMIGRATION BOND BUSINESS
 SECTION 6810. IMMIGRATION BOND BUSINESS.
         6811. IMMIGRATION BOND BUSINESS; LICENSING.
         6812. RESTRICTIONS.
         6813. PREMIUM OR COMPENSATION.
         6814. CIVIL ACTION BY PRIVATE PARTY; DAMAGES; ATTORNEY FEES.
         6815. SEVERABILITY CLAUSE.
         6816. REGULATIONS.
   § 6810. IMMIGRATION  BOND  BUSINESS. (A)(1) ANY PERSON, FIRM OR ORGAN-
 IZATION WHO CHARGES A PREMIUM OR A  FEE,  OR  RECEIVES  COMPENSATION  IN
 CONNECTION WITH THE DEPOSITING OF MONEY OR PROPERTY AS BOND, EXECUTES AS
 SURETY,  OR  NEGOTIATES  OR SOLICITS, ANY BOND, OR INDEMNIFIES OR UNDER-
 WRITES BONDS IN RELATION TO ANY PROCEEDING, FILING OR  ACTION  AFFECTING
 THE  NON-IMMIGRANT,  IMMIGRANT  OR  CITIZENSHIP STATUS OF A PERSON WHICH
 ARISES UNDER THE IMMIGRATION AND NATIONALITY  LAW,  EXECUTIVE  ORDER  OR
 PRESIDENTIAL  PROCLAMATION, OR WHICH ARISES UNDER ACTIONS OR REGULATIONS
 OF THE UNITED STATES DEPARTMENT OF HOMELAND SECURITY SHALL BE DEEMED  TO
 BE  DOING  AN  IMMIGRATION  BOND BUSINESS AS DEFINED IN THIS ARTICLE AND
 DOING AN INSURANCE BUSINESS AS DEFINED IN ARTICLE ELEVEN OF  THIS  CHAP-
 TER.
   (2)  EXCEPT  FOR A CORPORATION AUTHORIZED TO WRITE FIDELITY AND SURETY
 INSURANCE AND TO  DO  AN  IMMIGRATION  BOND  BUSINESS  PURSUANT  TO  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09647-04-1

 S. 7475                             2
 
 PROVISIONS OF ARTICLE ELEVEN OF THIS CHAPTER AND OTHERWISE IN COMPLIANCE
 WITH  ALL  OTHER  REQUIREMENTS  OF  THIS CHAPTER TO DO SUCH BUSINESS, NO
 PERSON, FIRM OR CORPORATION SHALL ENGAGE IN AN IMMIGRATION BOND BUSINESS
 IN THIS STATE.
   (B) NO PERSON, FIRM OR CORPORATION SHALL IN THIS STATE DO AN INSURANCE
 BUSINESS OR AN IMMIGRATION BOND BUSINESS AS DEFINED IN SUBSECTION (A) OF
 THIS  SECTION  UNLESS  AUTHORIZED  BY  A  LICENSE ISSUED AND IN FORCE AS
 PROVIDED UNDER ARTICLE ELEVEN OF THIS CHAPTER.
   § 6811. IMMIGRATION BOND BUSINESS; LICENSING. (A) NO PERSON,  FIRM  OR
 CORPORATION  OR  ANY OFFICER OR EMPLOYEE THEREOF SHALL ACT IN THIS STATE
 AS AN AGENT OR SOLICITOR OF AN IMMIGRATION BOND BUSINESS  IN  SOLICITING
 OR  NEGOTIATING  ANY FEES, COMPENSATION, OR PREMIUMS RELATED TO AN IMMI-
 GRATION BOND OR EFFECTUATING ANY SUCH DEPOSIT  OR  IMMIGRATION  BOND  BY
 SUCH  IMMIGRATION BOND BUSINESS UNLESS LICENSED BY THE SUPERINTENDENT AS
 AN AGENT PURSUANT TO THE PROVISIONS OF THIS SECTION.
   (B) EVERY IMMIGRATION BOND BUSINESS IN  THIS  STATE  SHALL  PROCURE  A
 LICENSE  PURSUANT  TO  THE  PROVISIONS  OF  THIS SECTION FOR EACH OF ITS
 EMPLOYEES, OFFICERS AND AGENTS ACTING FOR IT IN SOLICITING OR  NEGOTIAT-
 ING  ANY  FEES, COMPENSATION, OR PREMIUMS RELATED TO AN IMMIGRATION BOND
 OR EFFECTUATING ANY SUCH DEPOSIT OR IMMIGRATION BOND.
   (C) THE SUPERINTENDENT MAY, IN THE SUPERINTENDENT'S DISCRETION,  ISSUE
 TO  ANY  PERSON,  FIRM OR CORPORATION A LICENSE TO ACT AS AN AGENT OF AN
 IMMIGRATION BOND BUSINESS IN SOLICITING, NEGOTIATING OR EFFECTUATING ANY
 SUCH DEPOSIT OR IMMIGRATION BOND BY SUCH IMMIGRATION BOND BUSINESS.
   (D) ANY SUCH LICENSE ISSUED TO  AN  IMMIGRATION  BOND  BUSINESS  SHALL
 AUTHORIZE ONLY THE MEMBERS NAMED IN SUCH LICENSE AS SUBLICENSEES, TO ACT
 INDIVIDUALLY  AS  AGENTS  THEREUNDER.  ANY SUBLICENSE ISSUED TO A CORPO-
 RATION SHALL AUTHORIZE ONLY THE OFFICERS AND  DIRECTORS  NAMED  IN  SUCH
 LICENSE  AS  SUBLICENSEES,  TO  ACT  INDIVIDUALLY  AS AGENTS THEREUNDER.
 EVERY SUBLICENSEE, ACTING AS AN INSURANCE AGENT PURSUANT  TO  A  LICENSE
 ISSUED  TO A FIRM OR CORPORATION, SHALL BE AUTHORIZED TO ACT ONLY IN THE
 NAME OF SUCH FIRM OR CORPORATION.
   (E) BEFORE THE ISSUANCE OF A LICENSE EVERY APPLICANT SHALL SATISFY THE
 SUPERINTENDENT AS TO HIS  OR  HER  TRUSTWORTHINESS  AND  COMPETENCE  AND
 OTHERWISE  COMPLY  WITH  THE  CONDITIONS  SET FORTH IN THIS SECTION. THE
 SUPERINTENDENT MAY REFUSE TO ISSUE ANY SUCH LICENSE IF  IN  HIS  OR  HER
 JUDGMENT  SUCH  REFUSAL WILL BEST PROMOTE THE INTERESTS OF THE PEOPLE OF
 THIS STATE.
   (F) AT THE TIME OF THE APPLICATION FOR  EVERY  LICENSE  A  TWENTY-FIVE
 DOLLAR FEE SHALL BE PAID TO THE SUPERINTENDENT FOR EACH YEAR OR FRACTION
 OF  A  YEAR IN WHICH A LICENSE SHALL BE VALID FOR EACH INDIVIDUAL APPLI-
 CANT AND FOR EACH PROPOSED SUBLICENSEE.
   (G) EVERY APPLICANT FOR A LICENSE HEREUNDER SHALL FILE WITH THE SUPER-
 INTENDENT WRITTEN EVIDENCE BY THOSE WHO KNOW HIS OR  HER  CHARACTER  AND
 REPUTATION  AND  BY  SUCH OTHER PROOF AS THE SUPERINTENDENT MAY REQUIRE,
 INCLUDING HIS OR HER FINGERPRINTS, THAT HE OR SHE IS A  PERSON  OF  GOOD
 CHARACTER  AND  REPUTATION  AND  HAS NEVER BEEN CONVICTED OF ANY OFFENSE
 INVOLVING MORAL TURPITUDE OR OF ANY CRIME. IF SUCH APPLICANT IS  A  FIRM
 OR  CORPORATION  SUCH  PROOF  MUST BE MADE WITH RESPECT TO EVERY MEMBER,
 SHAREHOLDER, OFFICER AND DIRECTOR OF  SUCH  FIRM  OR  CORPORATION.  SUCH
 FINGERPRINTS  SHALL  BE  SUBMITTED  TO  THE DIVISION OF CRIMINAL JUSTICE
 SERVICES FOR A STATE CRIMINAL HISTORY RECORD CHECK, AS DEFINED IN SUBDI-
 VISION ONE OF SECTION THREE THOUSAND THIRTY-FIVE OF  THE  EDUCATION  LAW
 AND  MAY  BE  SUBMITTED  TO  THE  FEDERAL  BUREAU OF INVESTIGATION FOR A
 NATIONAL CRIMINAL HISTORY RECORD CHECK.
 S. 7475                             3
 
   (H) IN ORDER TO DETERMINE THE  COMPETENCE  OF  EACH  APPLICANT  FOR  A
 LICENSE  OR  A SUBLICENSE, THE SUPERINTENDENT SHALL REQUIRE EVERY APPLI-
 CANT TO PASS TO THE SATISFACTION OF THE SUPERINTENDENT A  WRITTEN  EXAM-
 INATION  TO  BE  PREPARED  BY  THE SUPERINTENDENT AND APPROPRIATE TO THE
 DOING  OF AN IMMIGRATION BOND BUSINESS. IF THE APPLICANT OR ANY PROPOSED
 SUBLICENSEE INTENDS TO MAINTAIN AN OFFICE OR SOLICIT, NEGOTIATE,  EFFEC-
 TUATE  OR  DEPOSIT  BAIL  ON  BEHALF OF ANOTHER IN ANY CITY CONTAINING A
 POPULATION OF MORE THAN ONE HUNDRED SEVENTY-FIVE THOUSAND, SUCH  WRITTEN
 EXAMINATION  MAY INQUIRE INTO THE APPLICANT'S KNOWLEDGE OF THE PERTINENT
 PROVISIONS OF THE CRIMINAL PROCEDURE LAW AND  THE  PERTINENT  RULES  AND
 PRACTICES  OF THE COURTS AND DISTRICT ATTORNEYS' OFFICES WITHIN THE AREA
 OF THE APPLICANT'S PROPOSED OPERATIONS. SUCH EXAMINATION SHALL  BE  HELD
 AT SUCH TIMES AND PLACES AS THE SUPERINTENDENT SHALL DETERMINE.
   (I) EVERY INDIVIDUAL APPLYING TO TAKE ANY WRITTEN EXAMINATION SHALL AT
 THE  TIME OF APPLYING PAY TO THE SUPERINTENDENT, OR AT THE DISCRETION OF
 THE SUPERINTENDENT, DIRECTLY TO ANY ORGANIZATION THAT IS UNDER  CONTRACT
 TO  PROVIDE  EXAMINATION SERVICES, AN EXAMINATION FEE OF AN AMOUNT WHICH
 IS THE ACTUAL DOCUMENTED ADMINISTRATIVE COST OF CONDUCTING THE  EXAMINA-
 TION  AS  CERTIFIED BY THE SUPERINTENDENT FROM TIME TO TIME. AN EXAMINA-
 TION FEE REPRESENTS AN ADMINISTRATIVE EXPENSE AND IS NOT REFUNDABLE.
   (J) EVERY APPLICANT FOR ANY SUCH LICENSE SHALL FILE  WITH  THE  SUPER-
 INTENDENT A QUALIFYING BOND, APPROVED BY THE ATTORNEY GENERAL AS TO FORM
 AND  BY THE SUPERINTENDENT AS TO SUFFICIENCY, IN A PENALTY OF FIVE THOU-
 SAND DOLLARS, CONDITIONED UPON THE FAITHFUL PERFORMANCE OF THE DUTIES OF
 SUCH LICENSEE. NO SUCH QUALIFYING BOND SHALL BE SUBJECT  TO  TERMINATION
 OR CANCELLATION BY EITHER PARTY IN LESS THAN SIXTY DAYS AFTER THE GIVING
 OF WRITTEN NOTICE TO THE OTHER PARTY AND TO THE SUPERINTENDENT. A TERMI-
 NATION  OR  CANCELLATION SHALL NOT AFFECT THE LIABILITY OF THE SURETY OR
 SURETIES ON SUCH BOND INCURRED PRIOR  TO  THE  EFFECTIVE  DATE  OF  SUCH
 TERMINATION OR CANCELLATION. IF DURING THE TERM OF SUCH BOND SUCH LICEN-
 SEE  SHALL BE GUILTY OF FRAUDULENT OR DISHONEST CONDUCT OR OTHER MISCON-
 DUCT OR MALFEASANCE IN HIS OR HER DEALINGS WITH ANY COURT OR  MAGISTRATE
 OR WITH ANY PERSON OR CORPORATION IN CONNECTION WITH ANY DEPOSIT OR BAIL
 BOND,  THE  ATTORNEY  GENERAL  MAY MAINTAIN AN ACTION ON SUCH QUALIFYING
 BOND IN THE NAME OF THE PEOPLE OF THIS STATE AND EITHER RECOVER THE FULL
 AMOUNT OF THE PENALTY OR RECOVER FOR THE USE AND BENEFIT OF  THE  PERSON
 OR  PERSONS  AGGRIEVED,  THE  AMOUNT OF LOSS OR INJURY SUSTAINED BY SUCH
 PERSON OR PERSONS BY REASON OF SUCH  MISCONDUCT.  NO  SUCH  RECOVERY  OR
 RECOVERIES  SHALL  EXCEED IN THE AGGREGATE FIVE THOUSAND DOLLARS, EXCLU-
 SIVE OF INTEREST AND COSTS.  AN ACTION SHALL NOT BE BROUGHT  UNDER  THIS
 SECTION  MORE  THAN SIX YEARS AFTER THE OCCURRENCE OF THE ACT, METHOD OR
 PRACTICE WHICH IS THE SUBJECT OF THE ACTION OR MORE THAN ONE YEAR  AFTER
 THE  LAST PAYMENT IN A TRANSACTION INVOLVING THE METHOD, ACT OR PRACTICE
 WHICH IS THE SUBJECT OF THE ACTION, WHICHEVER IS LATER.
   (K) THE SUPERINTENDENT MAY, UPON NOTICE AND AFTER A HEARING, REVOKE OR
 SUSPEND, FOR SUCH PERIOD AS HE OR SHE MAY DETERMINE, ANY SUCH LICENSE OR
 SUBLICENSE ISSUED PURSUANT TO THE PROVISIONS OF THIS SECTION  IF,  AFTER
 NOTICE  AND  HEARING  AS SPECIFIED IN THIS CHAPTER, HE OR SHE DETERMINES
 THAT THE LICENSEE OR ANY SUBLICENSEE OR ANY MEMBER OF A FIRM  OR  CORPO-
 RATION WHICH IS SO LICENSED HAS:
   (1)  VIOLATED  ANY  PROVISION  OF,  OR ANY OBLIGATION IMPOSED BY, THIS
 CHAPTER, OR HAS VIOLATED ANY OTHER LAW OF THE STATE;
   (2) HAS MADE A MATERIAL  MISSTATEMENT  IN  THE  APPLICATION  FOR  SUCH
 LICENSE;
   (3)  HAS BEEN GUILTY OF ANY FRAUDULENT OR DISHONEST PRACTICES OR OTHER
 MISCONDUCT OR MALFEASANCE;
 S. 7475                             4
 
   (4) HAS CHARGED OR RECEIVED, AS PREMIUM OR COMPENSATION FOR THE MAKING
 OF ANY DEPOSIT OR IMMIGRATION BOND, ANY SUM IN EXCESS OF THAT  PERMITTED
 BY LAW;
   (5)  HAS  REQUIRED,  AS  A  CONDITION OF HIS OR HER EXECUTING AN IMMI-
 GRATION BOND, THAT THE PRINCIPAL AGREE TO ENGAGE THE SERVICES OF A SPEC-
 IFIED ATTORNEY; OR
   (6) HAS DEMONSTRATED HIS OR HER INCOMPETENCY OR  UNTRUSTWORTHINESS  TO
 ACT AS A LICENSEE.
   (L) THE SUPERINTENDENT, IN LIEU OF REVOKING OR SUSPENDING A LICENSE IN
 ACCORDANCE WITH THE PROVISIONS OF THIS ARTICLE, MAY, IN ANY ONE PROCEED-
 ING, BY ORDER, REQUIRE THE LICENSEE TO PAY TO THE PEOPLE OF THIS STATE A
 PENALTY  IN  A  SUM NOT EXCEEDING FIVE HUNDRED DOLLARS FOR EACH OFFENSE,
 AND A PENALTY IN A SUM NOT EXCEEDING TWENTY-FIVE HUNDRED DOLLARS IN  THE
 AGGREGATE  FOR  ALL OFFENSES.  UPON FAILURE OF SUCH LICENSEE TO PAY SUCH
 PENALTY WITHIN TWENTY DAYS AFTER THE  MAILING  OF  SUCH  ORDER,  POSTAGE
 PREPAID,  REGISTERED,  AND ADDRESSED TO THE LAST KNOWN PLACE OF BUSINESS
 OF SUCH LICENSEE, UNLESS SUCH ORDER IS STAYED BY A  COURT  OF  COMPETENT
 JURISDICTION, THE SUPERINTENDENT MAY REVOKE THE LICENSE OF SUCH LICENSEE
 OR MAY SUSPEND THE SAME FOR SUCH PERIOD AS HE OR SHE MAY DETERMINE.
   (M) EVERY LICENSE ISSUED TO AN OFFICER, EMPLOYEE, OR AGENT OF AN IMMI-
 GRATION  BOND  BUSINESS  PURSUANT  TO  THIS  SECTION SHALL BE FOR A TERM
 EXPIRING ON THE THIRTY-FIRST OF DECEMBER OF EVEN NUMBERED YEARS AND  MAY
 BE  RENEWED  FOR  THE  ENSUING  TWO  CALENDAR YEARS UPON THE FILING OF A
 RENEWAL APPLICATION. THE SUPERINTENDENT MAY REFUSE  TO  ISSUE  ANY  SUCH
 LICENSE  IF  IN  THE  SUPERINTENDENT'S  JUDGMENT  SUCH REFUSAL WILL BEST
 PROMOTE THE INTERESTS OF THE PEOPLE OF THIS STATE.  EVERY SUCH  LICENSEE
 AND  SUBLICENSEE  SHALL  FILE  AN INFORMATION STATEMENT ON OR BEFORE THE
 THIRTY-FIRST OF DECEMBER OF  EACH  EVEN  NUMBERED  YEAR,  THE  FORM  AND
 SUBJECT MATTER OF WHICH MAY BE PRESCRIBED BY THE SUPERINTENDENT.
   (N)  ANY  DOMESTIC, FOREIGN OR ALIEN SURETY COMPANY WHICH WAS LICENSED
 TO DO AN IMMIGRATION BOND BUSINESS IN THIS STATE BEFORE  JANUARY  FIRST,
 NINETEEN  HUNDRED  FORTY  SHALL  SO  LONG  AS ITS LICENSE OR ANY RENEWAL
 REMAINS IN FORCE, BE DEEMED LICENSED AS AN INSURER TO DO  SUCH  BUSINESS
 WITHIN  THE  MEANING  OF  SUBSECTION  (B)  OF SECTION SIX THOUSAND EIGHT
 HUNDRED TEN OF THIS ARTICLE AND ARTICLE ELEVEN OF THIS CHAPTER.
   (O) THIS SECTION SHALL NOT APPLY TO ANY  INSURER  AUTHORIZED  IN  THIS
 STATE TO EXECUTE AND ISSUE POLICIES OF MOTOR VEHICLE AND AIRCRAFT INSUR-
 ANCE  AS  SPECIFIED  IN  PARAGRAPHS  THIRTEEN,  FOURTEEN AND NINETEEN OF
 SUBSECTION (A) OF SECTION ONE THOUSAND  ONE  HUNDRED  THIRTEEN  OF  THIS
 CHAPTER  OR  TO  ANY  AGENT  OF SUCH INSURER OR TO ANY BROKER WHO, AS AN
 INCIDENT TO THE EXECUTION AND ISSUANCE OF ANY  SUCH  POLICY  OR  TO  THE
 SOLICITATION,  NEGOTIATION  OR PROCUREMENT THEREOF UNDERTAKES TO PAY, IN
 ADDITION TO THE APPLICABLE LIMITS OF LIABILITY, THE COST OF  IMMIGRATION
 BONDS  REQUIRED  OF  THE INSURED BECAUSE OF ACCIDENT OR ASSERTED TRAFFIC
 LAW VIOLATIONS ARISING OUT OF THE USE OF A  VEHICLE  INSURED  UNDER  THE
 TERMS  OF  THE  POLICY,  PROVIDED THE COST OF EACH SUCH IMMIGRATION BOND
 DOES NOT EXCEED ONE HUNDRED DOLLARS, OR WHO OTHERWISE ARRANGES  FOR  THE
 EXECUTION  OF  A  IMMIGRATION  BOND  OR  DEPOSIT IN LIEU OF CASH BAIL ON
 BEHALF OF THE INSURED IN THE EVENT OF THE INSURED'S ARREST OR  DETENTION
 BY  REASON  OF AN ASSERTED VIOLATION OF ANY LAW RELATING TO THE USE OF A
 MOTOR VEHICLE.
   (P) THE SUPERINTENDENT MAY ISSUE A  REPLACEMENT  FOR  A  CURRENTLY  IN
 FORCE LICENSE WHICH HAS BEEN LOST OR DESTROYED.  BEFORE SUCH REPLACEMENT
 LICENSE  SHALL  BE  ISSUED,  THERE SHALL BE ON FILE IN THE OFFICE OF THE
 SUPERINTENDENT A  WRITTEN  APPLICATION  FOR  SUCH  REPLACEMENT  LICENSE,
 S. 7475                             5
 
 AFFIRMING  UNDER  PENALTY  OF PERJURY THAT THE ORIGINAL LICENSE HAS BEEN
 LOST OR DESTROYED, TOGETHER WITH A FEE OF FIFTEEN DOLLARS.
   §  6812.  RESTRICTIONS. (A) NO IMMIGRATION BOND BUSINESS AS DEFINED IN
 SUBSECTION (A) OF SECTION SIX THOUSAND EIGHT HUNDRED TEN OF THIS ARTICLE
 SHALL REQUIRE THE USE OF AN ELECTRONIC MONITORING DEVICE AS A  CONDITION
 FOR  THE  PROVISION  OF SUCH A BOND OR IN EXCHANGE FOR SERVICES. FOR THE
 PURPOSES OF THIS SECTION, AN "ELECTRONIC MONITORING DEVICE" INCLUDES ANY
 DEVICE THAT TRACKS OR MONITORS LOCATION, ANY DEVICE THAT TRACKS OR MONI-
 TORS BIOMETRIC DATA, OR ANY DEVICE THAT RECORDS OR  TRANSMITS  VIDEO  OR
 AUDIO SURVEILLANCE DATA.
   (B)  NO  IMMIGRATION  BOND  BUSINESS  AS  DEFINED IN SUBSECTION (A) OF
 SECTION SIX THOUSAND EIGHT HUNDRED TEN OF THIS ARTICLE SHALL  PROVIDE  A
 REFERRAL  OR CONTACT INFORMATION FOR A LAWYER OR LEGAL SERVICES PROVIDER
 THAT IS OWNED AT LEAST PARTLY BY THE IMMIGRATION  BOND  BUSINESS  OR  AN
 ENTITY AFFILIATED WITH THE IMMIGRATION BOND BUSINESS WITHOUT:
   (1)  DISCLOSING  IN WRITING, IN A LANGUAGE UNDERSTOOD BY THE CONSUMER,
 THE SOURCE OF PAYMENT TO THE LAWYER OR LEGAL SERVICES PROVIDER  FOR  THE
 SERVICES RENDERED; AND
   (2)  INCLUDING THE WRITTEN STATEMENT: "THE PAYMENT OF PREMIUMS OR FEES
 TO THE IMMIGRATION BOND PROVIDER IS NOT FOR AND DOES NOT GUARANTEE  THAT
 YOU  WILL  RECEIVE  LEGAL  REPRESENTATION.    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."
   § 6813. PREMIUM OR COMPENSATION. (A) FOR THE PURPOSES OF THIS ARTICLE,
 PREMIUM OR COMPENSATION SHALL INCLUDE ALL FEES AND  PAYMENTS  ASSOCIATED
 WITH  THE  PAYMENT, UNDERWRITING OR INDEMNIFICATION OF A BOND. SUCH FEES
 AND PAYMENTS SHALL INCLUDE, BUT ARE NOT  LIMITED  TO  MAINTENANCE  FEES,
 PROGRAM FEES, AND INTEREST RATE PAYMENTS.
   (B)  THE  PREMIUM  OR  COMPENSATION  FOR GIVING AN IMMIGRATION BOND OR
 DEPOSITING MONEY OR PROPERTY AS BAIL IN AN ACTION AFFECTING THE  NON-IM-
 MIGRANT,  IMMIGRANT  OR  CITIZENSHIP STATUS OF A PERSON SHALL NOT EXCEED
 TEN PER CENTUM OF THE AMOUNT OF SUCH BOND OR DEPOSIT  IN  ACTIONS  WHERE
 SUCH  BONDS OR DEPOSITS DO NOT EXCEED THE SUM OF THREE THOUSAND DOLLARS.
 WHERE SUCH BONDS OR DEPOSITS EXCEED THE SUM OF THREE  THOUSAND  DOLLARS,
 THE  PREMIUM SHALL NOT EXCEED TEN PER CENTUM OF THE FIRST THREE THOUSAND
 DOLLARS AND EIGHT PER CENTUM OF THE EXCESS AMOUNT  OVER  THREE  THOUSAND
 DOLLARS  UP  TO  TEN  THOUSAND  DOLLARS AND SIX PER CENTUM OF THE EXCESS
 AMOUNT OVER TEN THOUSAND DOLLARS.
   (C) NO PERSON OR CORPORATION SHALL:
   (1) CHARGE OR RECEIVE, DIRECTLY OR  INDIRECTLY,  ANY  GREATER  COMPEN-
 SATION  FOR  MAKING  A  DEPOSIT  FOR AN IMMIGRATION BOND, OR ACT IN SUCH
 BUSINESS AS AFORESAID WITHOUT OBTAINING A LICENSE, OR
   (2) ACCEPT ANY FEE OR COMPENSATION FOR  OBTAINING  A  LICENSE  OR  FOR
 OBTAINING AN IMMIGRATION BOND. SUCH PERSON OR CORPORATION SHALL BE GUIL-
 TY  OF  A  MISDEMEANOR  AND  IN  ADDITION SHALL IN ANY ACTION BROUGHT TO
 RECOVER ANY SUCH OVERCHARGE BE LIABLE FOR TREBLE DAMAGES.
   § 6814. CIVIL ACTION BY PRIVATE PARTY; DAMAGES; ATTORNEY  FEES.    ANY
 PERSON  WHO  HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS ARTICLE
 MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH  UNLAWFUL  ACT
 OR  PRACTICE,  AN ACTION TO RECOVER TREBLE HIS OR HER ACTUAL DAMAGES, OR
 BOTH SUCH ACTIONS. THE COURT SHALL AWARD REASONABLE ATTORNEY'S FEES  AND
 COSTS TO A PREVAILING PLAINTIFF.
   §  6815.  SEVERABILITY  CLAUSE.  IF  ANY  CLAUSE, SENTENCE, PARAGRAPH,
 SUBSECTION, SECTION OR PART OF THIS ARTICLE SHALL  BE  ADJUDGED  BY  ANY
 COURT  OF  COMPETENT JURISDICTION TO BE INVALID, SUCH JUDGMENT SHALL NOT
 S. 7475                             6

 AFFECT, IMPAIR, OR  INVALIDATE  THE  REMAINDER  THEREOF,  BUT  SHALL  BE
 CONFINED   IN   ITS   OPERATION  TO  THE  CLAUSE,  SENTENCE,  PARAGRAPH,
 SUBSECTION, SECTION OR PART THEREOF DIRECTLY INVOLVED IN THE CONTROVERSY
 IN  WHICH  SUCH JUDGMENT SHALL HAVE BEEN RENDERED. IT IS HEREBY DECLARED
 TO BE THE INTENT OF THE LEGISLATURE THAT THIS ARTICLE  WOULD  HAVE  BEEN
 ENACTED EVEN IF SUCH INVALID PROVISIONS HAD NOT BEEN INCLUDED HEREIN.
   §  6816.  REGULATIONS. THE SUPERINTENDENT SHALL PROMULGATE REGULATIONS
 IMPLEMENTING THE PROVISIONS OF THIS ARTICLE, OR  ANY  OTHER  REGULATIONS
 ALLOWED BY LAW THAT ADVANCES THE SAFETY, HEALTH AND INTERESTS OF CONSUM-
 ERS.
   §  2.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

Co-Sponsors

S7475A - Details

See Assembly Version of this Bill:: A7770
Law Section:: Insurance Law
Laws Affected:: Add §§1123, 2140 & 2312, Ins L

S7475A - Summary

Provides for regulating immigration bail businesses including restrictions on who may operate such a business; provides for who may bring an action against an immigration bail business.

S7475A - Sponsor Memo

 
BILL NUMBER: S7475A

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to an immigration bail
business

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill increases oversight of the immigration bond industry and curbs
abusive practices.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law by adding a new section 1123 that
defines an immigration bail business, and restricting the doing of an
immigration bond business to those authorized to do so by this article
and in compliance with the requirements of this article.

Section 2 amends the insurance law by adding a new section 2140, which
imposes certain restrictions on conducting an immigration bail business

in the state. It prohibits immigration bond businesses from requiring
electronic monitoring as a condition of an immigration bail, and
requires immigration bond companies to disclose the sources of funding
for lawyers to which they refer immigration bail clients and inform
immigration bail clients that they have a right to choose their own
legal counsel.

Section 3 amends the insurance law by adding a new section 2313 that
establishes a cap on immigration bond premiums.

Section 4 provides for the severability of any clause found to be inval-
id.

Section 5 directs the superintendent to promulgate regulations imple-
menting this act, and provides the effective date.

 
JUSTIFICATION:

The scope of immigrant detention is massive. Across the country, more
than 25,000 immigrants were booked into detention in the first three
months of 2021 and there are nearly 14,000 in detention on a daily
basis. Hundreds of immigrant New Yorkers are detained in as many as 76
different detention facilities across the state.

In New York, the median dollar amount of bonds granted in immigration
cases is $7,500 - one of the highest in the country. This 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
person detained to pay a surety or bond company a non-refundable
percentage of the bond amount (usually 15-20 percent). 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.


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. 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.

Clients of for-profit immigration bond companies have reported that (a)
they did not understand the contracts they entered into, (b) contract
documents were not translated into their primary language, and (c) they
were led to believe that the fees they paid to immigration bond compa-
nies 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.

For-profit immigration bond companies charge bailees as much as $420
each month for "operating fees" on the electronic ankle monitors they
are required to keep on. Courts.have estimated that the actual cost of
operating these devices amounts to about $120 per month, which means
that these companies have turned their shackle requirement into a profit
center.

Because the average wait time in New York State immigration courts is
over 2 years, detained immigrants may end up paying over $10,000 in fees
for ankle monitoring alone. Again, these fees are non-refundable, even
if the detained individual prevails in court.  Some clients of for-pro-
fit immigration bond companies have reported that they have experienced
serious medical conditions related to their ankle monitors. They've
reported that they were required to keep the ankle shackle on even
during a pregnancy, and that they would have to pay $4,000 in fees
(several times the actual cost of the device) if the devices were lost
or became damaged - even in cases where the device was cut off by
medical personnel out of necessity.

Of further concern, for-profit immigration bond companies have been
known to refer clients to "pro bono" law practices affiliated with the
company that provide free legal representation in immigration
proceedings. While these arrangements appear to be purely charitable,
they create a conflict of interest for these companies, where immi-
gration attorneys funded by the immigration bond companies have an
incentive to act in the best interests of the company, rather than their
clients.

This modest legislation would bring badly needed oversight to a sector
in which companies may be operating as unlicensed insurance agents by
licensing and regulating immigration bond businesses, reining in
inflated fees, requiring more transparency in contracts, and curbing the
abusive practice of charging immigration bond clients for their own
electronic ankle shackles.

 
PRIOR LEGISLATIVE HISTORY:

2020: A8450/S6521

2019:  A8450/S6521

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:
Unknown.

 
EFFECTIVE DATE:
60 days after becoming law.

S7475A - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7475--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 27, 2021
                                ___________
 
 Introduced  by Sens. BAILEY, BIAGGI, CLEARE, MYRIE, PARKER, RAMOS, SALA-
   ZAR, SEPULVEDA -- read twice and ordered printed, and when printed  to
   be committed to the Committee on Rules -- recommitted to the Committee
   on  Insurance  in  accordance  with Senate Rule 6, sec. 8 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee
 
 AN ACT to amend the insurance law, in relation to  an  immigration  bail
   business
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The insurance law is amended by adding a new  section  1123
 to read as follows:
   § 1123. IMMIGRATION  BAIL  BUSINESS.  (A)(1)  ANY PERSON, FIRM, CORPO-
 RATION, OR OTHER ENTITY WHO SHALL FOR ANOTHER DEPOSIT MONEY OR  PROPERTY
 AS  BAIL  OR  EXECUTE  AS  SURETY  ANY BOND IN ANY IMMIGRATION ACTION OR
 PROCEEDING WHO WITHIN A PERIOD OF ONE MONTH  PRIOR  THERETO  SHALL  HAVE
 MADE  SUCH A DEPOSIT OR GIVEN SUCH BAIL IN MORE THAN TWO CASES NOT ARIS-
 ING OUT OF THE SAME TRANSACTION SHALL BE DEEMED TO  BE  DOING  AN  IMMI-
 GRATION  BAIL BUSINESS AS DEFINED IN THIS SECTION AND DOING AN INSURANCE
 BUSINESS AS DEFINED IN THIS ARTICLE.
   (2) EXCEPT FOR A CORPORATION AUTHORIZED TO WRITE FIDELITY  AND  SURETY
 INSURANCE  AND  TO  DO  AN  IMMIGRATION  BAIL  BUSINESS  PURSUANT TO THE
 PROVISIONS OF THIS ARTICLE AND OTHERWISE IN COMPLIANCE  WITH  ALL  OTHER
 REQUIREMENTS  OF  THIS  CHAPTER  TO  DO  SUCH BUSINESS, NO PERSON, FIRM,
 CORPORATION, OR OTHER ENTITY SHALL ENGAGE IN AN IMMIGRATION  BAIL  BUSI-
 NESS IN THIS STATE.
   (B)  (1)  NO  PERSON, FIRM, CORPORATION, OR OTHER ENTITY SHALL IN THIS
 STATE DO AN INSURANCE  BUSINESS  OR  AN  IMMIGRATION  BAIL  BUSINESS  AS
 DEFINED IN SUBSECTION (A) OF THIS SECTION UNLESS AUTHORIZED BY A LICENSE
 ISSUED AND IN FORCE AS PROVIDED UNDER THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09647-06-2
 S. 7475--A                          2

 
   (2)  THE  SUPERINTENDENT  MAY  AUTHORIZE A PROPERTY/CASUALTY INSURANCE
 COMPANY THAT IS AUTHORIZED TO WRITE FIDELITY AND SURETY INSURANCE TO  DO
 AN  IMMIGRATION  BAIL BUSINESS IN ACCORDANCE WITH THE PROVISIONS OF THIS
 ARTICLE, BUT NO INDIVIDUAL OR ENTITY SHALL BE LICENSED TO DO SUCH  BUSI-
 NESS.
   (C)  ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY THAT VIOLATES THIS
 SECTION SHALL BE SUBJECT TO THE PENALTY SET FORTH IN SUBSECTION  (A)  OF
 SECTION ONE THOUSAND ONE HUNDRED TWO OF THIS ARTICLE.
   (D) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
 SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
 FUL  ACT  OR  PRACTICE,  AN  ACTION  TO RECOVER TREBLE HIS OR HER ACTUAL
 DAMAGES, OR BOTH SUCH ACTIONS. THE COURT SHALL AWARD  REASONABLE  ATTOR-
 NEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   §  2.    The  insurance law is amended by adding a new section 2140 to
 read as follows:
   § 2140. RESTRICTIONS  ON  INSURANCE  PRODUCERS  PROCURING  IMMIGRATION
 BONDS.  (A) NO INSURANCE PRODUCER SHALL REQUIRE THE USE OF AN ELECTRONIC
 MONITORING DEVICE AS A CONDITION OF IMMIGRATION BAIL. FOR  THE  PURPOSES
 OF  THIS  SECTION, AN "ELECTRONIC MONITORING DEVICE" INCLUDES ANY DEVICE
 THAT TRACKS OR MONITORS LOCATION, ANY DEVICE  THAT  TRACKS  OR  MONITORS
 BIOMETRIC  DATA,  OR ANY DEVICE THAT RECORDS OR TRANSMITS VIDEO OR AUDIO
 SURVEILLANCE DATA.
   (B) NO INSURANCE PRODUCER SHALL MAKE A REFERRAL TO OR PROVIDE  CONTACT
 INFORMATION FOR A LEGAL SERVICES PROVIDER WITHOUT:
   (1)  DISCLOSING  IN WRITING, IN A LANGUAGE UNDERSTOOD BY THE CONSUMER,
 WHETHER THE INSURANCE PRODUCER OR AN ENTITY THAT IS AN AFFILIATE OF  THE
 INSURANCE  PRODUCER:  (A)  HAS  A FINANCIAL OR OWNERSHIP INTEREST IN THE
 LEGAL SERVICES PROVIDER;  (B)  IS  RECEIVING  ANY  COMPENSATION,  EITHER
 DIRECTLY  OR  INDIRECTLY,  FOR MAKING A REFERRAL TO OR PROVIDING CONTACT
 INFORMATION FOR THE LEGAL SERVICES PROVIDER;  OR  (C)  IS  COMPENSATING,
 EITHER DIRECTLY OR INDIRECTLY, THE LEGAL SERVICES PROVIDER FOR THE LEGAL
 SERVICES RENDERED; AND
   (2)  STATING  THAT: "THE PAYMENT OF PREMIUMS TO THE INSURANCE PRODUCER
 IS NOT FOR AND DOES NOT GUARANTEE THAT YOU WILL RECEIVE LEGAL  REPRESEN-
 TATION.    USING  THIS  LEGAL  SERVICES PROVIDER IS NOT A REQUIREMENT OF
 BAIL. IF YOU CHOOSE TO HIRE THIS LEGAL SERVICES PROVIDER, YOU  HAVE  THE
 RIGHT TO FIRE THE PROVIDER AT ANY TIME AND RETAIN YOUR OWN COUNSEL."
   (C) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
 SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
 FUL  ACT  OR  PRACTICE,  AN  ACTION  TO RECOVER TREBLE HIS OR HER ACTUAL
 DAMAGES, OR BOTH SUCH ACTIONS. THE COURT SHALL AWARD  REASONABLE  ATTOR-
 NEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   § 3. The insurance law is amended by adding a new section 2312 to read
 as follows:
   §  2312. IMMIGRATION BOND PREMIUM. (A) THE PREMIUM FOR GIVING AN IMMI-
 GRATION BOND OR DEPOSITING MONEY OR PROPERTY AS IMMIGRATION BAIL IN  ANY
 COURT  HAVING  IMMIGRATION  JURISDICTION OR IN ANY IMMIGRATION ACTION OR
 PROCEEDING SHALL NOT EXCEED TEN PER CENTUM OF THE AMOUNT OF SUCH BOND OR
 DEPOSIT IN ACTIONS WHERE SUCH BONDS OR DEPOSITS DO NOT EXCEED THE SUM OF
 THREE THOUSAND DOLLARS.  WHERE SUCH BONDS OR DEPOSITS EXCEED THE SUM  OF
 THREE  THOUSAND  DOLLARS, THE PREMIUM SHALL NOT EXCEED TEN PER CENTUM OF
 THE FIRST THREE THOUSAND DOLLARS AND EIGHT  PER  CENTUM  OF  THE  EXCESS
 AMOUNT  OVER  THREE  THOUSAND DOLLARS UP TO TEN THOUSAND DOLLARS AND SIX
 PER CENTUM OF THE EXCESS AMOUNT OVER TEN THOUSAND DOLLARS.
   (B) NO PERSON, FIRM, CORPORATION, OR OTHER ENTITY, INCLUDING AN INSUR-
 ANCE PRODUCER, SHALL:
 S. 7475--A                          3
 
   (1) CHARGE, COLLECT, OR RECEIVE, DIRECTLY OR INDIRECTLY,  ANY  FEE  OR
 COMPENSATION  IN  CONNECTION  WITH  AN IMMIGRATION BAIL DEPOSIT OR IMMI-
 GRATION BOND, OTHER THAN THE PREMIUM BASED ON RATES SUBJECT TO THE MAXI-
 MUM SPECIFIED IN SUBSECTION (A) OF  THIS  SECTION  AND  FILED  WITH  THE
 SUPERINTENDENT  BY THE INSURER PURSUANT TO THIS ARTICLE, NOTWITHSTANDING
 SUBSECTION (C) OF SECTION TWO THOUSAND  ONE  HUNDRED  NINETEEN  OF  THIS
 CHAPTER; OR
   (2)  ACCEPT  ANY  FEE  OR  COMPENSATION FOR OBTAINING A LICENSE OR FOR
 OBTAINING AN INSURANCE PRODUCER OR IMMIGRATION  BOND  OR  FOR  AN  IMMI-
 GRATION BAIL DEPOSIT.
   (C)  ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY THAT VIOLATES THIS
 SECTION SHALL BE GUILTY OF A MISDEMEANOR.  AN INDEMNITOR MAY MAINTAIN  A
 CAUSE OF ACTION IN A COURT OF COMPETENT JURISDICTION AGAINST ANY PERSON,
 FIRM, CORPORATION, OR OTHER ENTITY TO RECOVER ANY FEE OR COMPENSATION IN
 EXCESS  OF  THE  AMOUNT AUTHORIZED PURSUANT TO THIS SECTION. THE PERSON,
 FIRM, CORPORATION, OR OTHER ENTITY SHALL, IN ANY ACTION  BROUGHT  BY  AN
 INDEMNITOR TO RECOVER ANY SUCH OVERCHARGE, BE LIABLE FOR TREBLE DAMAGES.
   (D) ANY PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS
 SECTION MAY BRING AN ACTION IN HIS OR HER OWN NAME TO ENJOIN SUCH UNLAW-
 FUL  ACT  OR  PRACTICE,  AN  ACTION  TO RECOVER TREBLE HIS OR HER ACTUAL
 DAMAGES, OR BOTH SUCH ACTIONS. THE COURT SHALL AWARD  REASONABLE  ATTOR-
 NEY'S FEES AND COSTS TO A PREVAILING PLAINTIFF.
   §   4.  Severability  clause.  If  any  clause,  sentence,  paragraph,
 subsection, section or part of this act shall be adjudged by  any  court
 of competent jurisdiction to be invalid, such judgment shall not affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph, subsection, section or
 part thereof directly involved in the controversy in which such judgment
 shall have been rendered. It is hereby declared to be the intent of  the
 legislature  that  this act would have been enacted even if such invalid
 provisions had not been included herein.
   § 5. This act shall take effect on the sixtieth  day  after  it  shall
 have  become  a  law.    Effective  immediately, the addition, amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of this act on  its  effective  date  are  authorized  to  be  made  and
 completed on or before such effective date.

Co-Sponsors

view additional co-sponsors

S7475B (ACTIVE) - Details

See Assembly Version of this Bill:: A7770
Law Section:: Insurance Law
Laws Affected:: Add §§1123, 2140 & 2312, Ins L

S7475B (ACTIVE) - Summary

Provides for regulating immigration bail businesses including restrictions on who may operate such a business; provides for who may bring an action against an immigration bail business.

S7475B (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S7475B

SPONSOR: BAILEY
 
TITLE OF BILL:

An act to amend the insurance law, in relation to an immigration bail
business

 
PURPOSE OR GENERAL IDEA OF BILL:

This bill increases oversight of the immigration bond industry and curbs
abusive practices.

 
SUMMARY OF PROVISIONS:

Section 1 amends the insurance law by adding a new section 1123 that
defines an immigration bail business, and restricting the doing of an
immigration bond business to those authorized to do so by this article
and in compliance with the requirements of this article.

Section 2 amends the insurance law by adding a new section 2140 imposing
certain restrictions on the doing of an immigration bail business in the

state. It prohibits immigration bond businesses from requiring electron-
ic monitoring as a condition of an immigration bail and requires immi-
gration bond companies to disclose the sources of funding for lawyers to
which they refer immigration bail clients and inform immigration bail
clients that they have a right to choose their own legal counsel.

Section 3 amends the insurance law by adding a new section 2313 that
establishes a cap on immigration bond premiums.

Section 4 provides for the severability of any clause found to be inval-
id.

Section 5 directs the superintendent to promulgate regulations imple-
menting this act, and provides the effective date.

 
JUSTIFICATION:

The scope of immigrant detention is massive. Across the country, more
than 25,000 immigrants were booked into detention in the first three
months of 2021 and there are nearly 14,000 in detention on a daily
basis. Hundreds of immigrant New Yorkers are detained in as many as 76
different detention facilities across the state.

In New York the median dollar amount of bonds granted in immigration
cases is $7,500, one of the highest in the country. This 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-refundable
percentage of the bond amount (usually 15-20%). Many immigrants who
cannot afford a cash bond turn to immigration bond companies for a sure-
ty bond, driving rapid growth in the immigration bond sector in recent
years.

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. 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.

Clients of for-profit immigration bond companies have reported that they
did not understand the contracts they entered into, that contract docu-
ments were not translated into their language, and that they were led to
believe fees they paid to immigration 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.

For-profit immigration bond companies charge bailees as much as $420
each month as "operating fees" on the electronic ankle monitors it
requires them to wear. The actual cost of operating these devices has
been estimated in court documents as $120 per month, which means that
these companies 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 may end up paying over $10,000 in fees
for ankle monitoring fees alone. Again, these fees are not refundable,
even if the immigrant prevails in. court. Some clients of for-profit
immigration bond companies have reported that they experienced serious
medical conditions related to their ankle monitors, that they were told
they had to keep the ankle shackle on even during a pregnancy, and that
they were told that 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.

Of further concern, for-profit immigration bond companies have been
known to refer clients to "pro Bono" law practices affiliated with the
company that provide free legal representation in immigration
proceedings. While the these arrangements can appear purely charitable,
they create a significant risk of legal conflict of interest, in which
immigration attorneys funded by immigration bond company may have an
incentive to act in the best interests of the company rather than their
clients.

This modest legislation would bring badly needed oversight to a sector
in which companies may be operating as unlicensed insurance agents and
which is rife with abuses by licensing and regulating immigration bond
businesses, reining in inflated fees, requiring more transparency in
contracts, and curbing the abusive practice of charging immigration bond
clients for their own electronic ankle shackles.

 
PRIOR LEGISLATIVE HISTORY:

2020: A8450/S6521

2019: A8450/S6521

 
RULES FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

Unknown.

 
EFFECTIVE DATE:
60 days after becoming law.

S7475B (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7475--B
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             October 27, 2021
                                ___________
 
 Introduced  by Sens. BAILEY, BIAGGI, CLEARE, MYRIE, PARKER, RAMOS, SALA-
   ZAR, SEPULVEDA -- read twice and ordered printed, and when printed  to
   be committed to the Committee on Rules -- recommitted to the Committee
   on  Insurance  in  accordance  with Senate Rule 6, sec. 8 -- committee
   discharged, bill amended, ordered reprinted as amended and recommitted
   to said committee  --  committee  discharged,  bill  amended,  ordered
   reprinted as amended and recommitted to said committee
 
 AN  ACT  to  amend the insurance law, in relation to an immigration bail
   business
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  The insurance law is amended by adding a new section 1123
 to read as follows:
   § 1123. IMMIGRATION BAIL BUSINESS. (A)(1)  ANY  PERSON,  FIRM,  CORPO-
 RATION,  OR OTHER ENTITY WHO SHALL FOR ANOTHER DEPOSIT MONEY OR PROPERTY
 AS BAIL OR EXECUTE AS SURETY ANY  BOND  IN  ANY  IMMIGRATION  ACTION  OR
 PROCEEDING  WHO  WITHIN  A  PERIOD OF ONE MONTH PRIOR THERETO SHALL HAVE
 MADE SUCH A DEPOSIT OR GIVEN SUCH BAIL IN MORE THAN TWO CASES NOT  ARIS-
 ING  OUT  OF  THE  SAME TRANSACTION SHALL BE DEEMED TO BE DOING AN IMMI-
 GRATION BAIL BUSINESS.
   (2) EXCEPT FOR A CORPORATION AUTHORIZED TO WRITE FIDELITY  AND  SURETY
 INSURANCE  AND  TO  DO  AN  IMMIGRATION  BAIL  BUSINESS  PURSUANT TO THE
 PROVISIONS OF THIS ARTICLE AND OTHERWISE IN COMPLIANCE  WITH  ALL  OTHER
 REQUIREMENTS  OF  THIS  CHAPTER  TO  DO  SUCH BUSINESS, NO PERSON, FIRM,
 CORPORATION, OR OTHER ENTITY SHALL ENGAGE IN AN IMMIGRATION  BAIL  BUSI-
 NESS IN THIS STATE.
   (B)  (1)  NO  PERSON, FIRM, CORPORATION, OR OTHER ENTITY SHALL IN THIS
 STATE DO AN INSURANCE  BUSINESS  OR  AN  IMMIGRATION  BAIL  BUSINESS  AS
 DEFINED IN SUBSECTION (A) OF THIS SECTION UNLESS AUTHORIZED BY A LICENSE
 ISSUED AND IN FORCE AS PROVIDED UNDER THIS ARTICLE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD09647-10-2
 S. 7475--B                          2

 
   (2)  THE  SUPERINTENDENT  MAY  AUTHORIZE A PROPERTY/CASUALTY INSURANCE
 COMPANY THAT IS AUTHORIZED TO WRITE FIDELITY AND SURETY INSURANCE TO  DO
 AN  IMMIGRATION  BAIL BUSINESS IN ACCORDANCE WITH THE PROVISIONS OF THIS
 ARTICLE, BUT NO INDIVIDUAL OR ENTITY SHALL BE LICENSED TO DO SUCH  BUSI-
 NESS.
   (C)  ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY THAT VIOLATES THIS
 SECTION SHALL BE SUBJECT TO THE PENALTY SET FORTH IN SUBSECTION  (A)  OF
 SECTION ONE THOUSAND ONE HUNDRED TWO OF THIS ARTICLE.
   (D)  ANY  AGREEMENT  ENTERED INTO BY AN ENTITY SUBJECT TO THIS SECTION
 THAT IS NOT AUTHORIZED TO DO AN IMMIGRATION BAIL BUSINESS IN  ACCORDANCE
 WITH THE PROVISIONS OF THIS ARTICLE SHALL BE VOID AND UNENFORCEABLE.
   §  2.    The  insurance law is amended by adding a new section 2140 to
 read as follows:
   § 2140. RESTRICTIONS  ON  INSURANCE  PRODUCERS  PROCURING  IMMIGRATION
 BONDS.  (A) NO INSURANCE PRODUCER SHALL REQUIRE THE USE OF AN ELECTRONIC
 MONITORING DEVICE AS A CONDITION OF IMMIGRATION BAIL. FOR  THE  PURPOSES
 OF  THIS  SECTION, AN "ELECTRONIC MONITORING DEVICE" INCLUDES ANY DEVICE
 THAT TRACKS OR MONITORS LOCATION, ANY DEVICE  THAT  TRACKS  OR  MONITORS
 BIOMETRIC  DATA,  OR ANY DEVICE THAT RECORDS OR TRANSMITS VIDEO OR AUDIO
 SURVEILLANCE DATA.
   (B) NO INSURANCE PRODUCER SHALL MAKE A REFERRAL TO OR PROVIDE  CONTACT
 INFORMATION FOR A LEGAL SERVICES PROVIDER WITHOUT:
   (1)  DISCLOSING  IN WRITING, IN A LANGUAGE UNDERSTOOD BY THE CONSUMER,
 WHETHER THE INSURANCE PRODUCER OR AN ENTITY THAT IS AN AFFILIATE OF  THE
 INSURANCE  PRODUCER:  (A)  HAS  A FINANCIAL OR OWNERSHIP INTEREST IN THE
 LEGAL SERVICES PROVIDER;  (B)  IS  RECEIVING  ANY  COMPENSATION,  EITHER
 DIRECTLY  OR  INDIRECTLY,  FOR MAKING A REFERRAL TO OR PROVIDING CONTACT
 INFORMATION FOR THE LEGAL SERVICES PROVIDER;  OR  (C)  IS  COMPENSATING,
 EITHER DIRECTLY OR INDIRECTLY, THE LEGAL SERVICES PROVIDER FOR THE LEGAL
 SERVICES RENDERED; AND
   (2)  STATING  THAT: "THE PAYMENT OF PREMIUMS TO THE INSURANCE PRODUCER
 IS NOT FOR AND DOES NOT GUARANTEE THAT YOU WILL RECEIVE LEGAL  REPRESEN-
 TATION.    USING  THIS  LEGAL  SERVICES PROVIDER IS NOT A REQUIREMENT OF
 BAIL. IF YOU CHOOSE TO HIRE THIS LEGAL SERVICES PROVIDER, YOU  HAVE  THE
 RIGHT TO FIRE THE PROVIDER AT ANY TIME AND RETAIN YOUR OWN COUNSEL."
   (C)  ANY  AGREEMENT,  OR  PORTION  THEREOF, ENTERED INTO REQUIRING THE
 WAIVING OF THE REQUIREMENTS OF THIS SECTION OR OTHERWISE IN VIOLATION OF
 THIS SECTION SHALL BE VOID AND UNENFORCEABLE.
   § 3. The insurance law is amended by adding a new section 2312 to read
 as follows:
   § 2312. IMMIGRATION BOND PREMIUM. (A) THE PREMIUM FOR GIVING AN  IMMI-
 GRATION  BOND OR DEPOSITING MONEY OR PROPERTY AS IMMIGRATION BAIL IN ANY
 COURT HAVING IMMIGRATION JURISDICTION OR IN ANY  IMMIGRATION  ACTION  OR
 PROCEEDING SHALL NOT EXCEED TEN PER CENTUM OF THE AMOUNT OF SUCH BOND OR
 DEPOSIT IN ACTIONS WHERE SUCH BONDS OR DEPOSITS DO NOT EXCEED THE SUM OF
 THREE  THOUSAND DOLLARS.  WHERE SUCH BONDS OR DEPOSITS EXCEED THE SUM OF
 THREE THOUSAND DOLLARS, THE PREMIUM SHALL NOT EXCEED TEN PER  CENTUM  OF
 THE  FIRST  THREE  THOUSAND  DOLLARS  AND EIGHT PER CENTUM OF THE EXCESS
 AMOUNT OVER THREE THOUSAND DOLLARS UP TO TEN THOUSAND  DOLLARS  AND  SIX
 PER CENTUM OF THE EXCESS AMOUNT OVER TEN THOUSAND DOLLARS.
   (B) NO PERSON, FIRM, CORPORATION, OR OTHER ENTITY, INCLUDING AN INSUR-
 ANCE PRODUCER, SHALL:
   (1)  CHARGE,  COLLECT,  OR RECEIVE, DIRECTLY OR INDIRECTLY, ANY FEE OR
 COMPENSATION IN CONNECTION WITH AN IMMIGRATION  BAIL  DEPOSIT  OR  IMMI-
 GRATION BOND, OTHER THAN THE PREMIUM BASED ON RATES SUBJECT TO THE MAXI-
 MUM  SPECIFIED  IN  SUBSECTION  (A)  OF  THIS SECTION AND FILED WITH THE
 S. 7475--B                          3
 
 SUPERINTENDENT BY THE INSURER PURSUANT TO THIS ARTICLE,  NOTWITHSTANDING
 SUBSECTION  (C)  OF  SECTION  TWO  THOUSAND ONE HUNDRED NINETEEN OF THIS
 CHAPTER; OR
   (2)  ACCEPT  ANY  FEE  OR  COMPENSATION FOR OBTAINING A LICENSE OR FOR
 OBTAINING AN INSURANCE PRODUCER OR IMMIGRATION  BOND  OR  FOR  AN  IMMI-
 GRATION BAIL DEPOSIT.
   (C)  ANY PERSON, FIRM, CORPORATION, OR OTHER ENTITY THAT VIOLATES THIS
 SECTION SHALL BE GUILTY OF A MISDEMEANOR.  AN INDEMNITOR MAY MAINTAIN  A
 CAUSE OF ACTION IN A COURT OF COMPETENT JURISDICTION AGAINST ANY PERSON,
 FIRM, CORPORATION, OR OTHER ENTITY TO RECOVER ANY FEE OR COMPENSATION IN
 EXCESS  OF  THE  AMOUNT AUTHORIZED PURSUANT TO THIS SECTION. THE PERSON,
 FIRM, CORPORATION, OR OTHER ENTITY SHALL, IN ANY ACTION  BROUGHT  BY  AN
 INDEMNITOR TO RECOVER ANY SUCH OVERCHARGE, BE LIABLE FOR TREBLE DAMAGES.
   (D)  ANY  AGREEMENT,  OR  PORTION  THEREOF, ENTERED INTO REQUIRING THE
 WAIVING OF THE REQUIREMENTS OF THIS SECTION OR OTHERWISE IN VIOLATION OF
 THIS SECTION SHALL BE VOID AND UNENFORCEABLE.
   §  4.  Severability  clause.  If  any  clause,  sentence,   paragraph,
 subsection,  section  or part of this act shall be adjudged by any court
 of competent jurisdiction to be invalid, such judgment shall not affect,
 impair, or invalidate the remainder thereof, but shall  be  confined  in
 its operation to the clause, sentence, paragraph, subsection, section or
 part thereof directly involved in the controversy in which such judgment
 shall  have been rendered. It is hereby declared to be the intent of the
 legislature that this act would have been enacted even if  such  invalid
 provisions had not been included herein.
   §  5.  This  act  shall take effect on the sixtieth day after it shall
 have become a law.    Effective  immediately,  the  addition,  amendment
 and/or repeal of any rule or regulation necessary for the implementation
 of  this  act  on  its  effective  date  are  authorized  to be made and
 completed on or before such effective date.

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The New York State Senate

senate Bill S7475B

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Archive: Last Bill Status - Signed by Governor

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Jun 1, 2022 - floor Vote

Floor Vote: Jun 1, 2022

Jun 1, 2022 - Rules committee Vote

Rules Committee Vote: Jun 1, 2022

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S7475 - Details

S7475 - Summary

S7475 - Sponsor Memo

S7475 - Bill Text download pdf

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S7475A - Details

S7475A - Summary

S7475A - Sponsor Memo

S7475A - Bill Text download pdf

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S7475B (ACTIVE) - Details

S7475B (ACTIVE) - Summary

S7475B (ACTIVE) - Sponsor Memo

S7475B (ACTIVE) - Bill Text download pdf

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senate Bill S7475B

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Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Jun 1, 2022 - floor Vote

Floor Vote: Jun 1, 2022

Jun 1, 2022 - Rules committee Vote

Rules Committee Vote: Jun 1, 2022

Bill Amendments

Co-Sponsors

S7475 - Details

S7475 - Summary

S7475 - Sponsor Memo

S7475 - Bill Text download pdf

Co-Sponsors

S7475A - Details

S7475A - Summary

S7475A - Sponsor Memo

S7475A - Bill Text download pdf

Co-Sponsors

S7475B (ACTIVE) - Details

S7475B (ACTIVE) - Summary

S7475B (ACTIVE) - Sponsor Memo

S7475B (ACTIVE) - Bill Text download pdf

Comments