Relates to charitable bail organizations.
TITLE OF BILL: An act to amend the criminal procedure law and the insurance law, in relation to charitable bail organizations
PURPOSE: This bill provides the legal definition and requirements for charitable bail organizations organized for the purpose of posting cash bail for poor persons.
SUMMARY OF PROVISIONS: Section 1 of this bill adds a new subdivision 21 to section 500.10 of the criminal procedure law to define a charitable bail organization regulated under 501 (c) 3 of Title 26 of the United States Code and Article 7-A of the Executive Law.
Section 2 of this bill amends paragraph (1) of subdivision (a) of section 6801 of the insurance law to exempt charitable bail organizations from the definition of bail bond business.
Section 3 of this bill sets forth the effective date.
JUSTIFICATION: Occasionally, charitable groups with knowledge of particular indigent persons post bail on behalf of such persons. Since these organizations do not charge a premium or receive compensation for cash bail paid, they are unable to meet the significant fiscal burdens imposed by Insurance Law provisions that are designed to regulate for-profit corporations engaged full-time in the bail bond business.
This bill defines a charitable bail organization to ensure that only organizations that are non-profit and registered as a charity with the Office of the Attorney General may engage in this activity. It prohibits such organizations from charging a premium or receiving compensation for bail given or provided. As registered charities, such organizations are required to report their activities to the Attorney General's office. Because these organizations are governed by 501(c) 3 of Title 26 of the United States Code and related statutes, and regulated as charities pursuant to article 7-A of the Executive Law, it is not necessary to further require that they met the onerous requirements for registration as a bail bond business under the Insurance Law.
FISCAL IMPLICATIONS: None.
EFFECTIVE DATE: This act shall take effect ninety days after it shall have become law.
STATE OF NEW YORK ________________________________________________________________________ 5734 2011-2012 Regular Sessions IN SENATE June 14, 2011 ___________Introduced by Sen. RIVERA -- read twice and ordered printed, and when printed to be committed to the Committee on Rules AN ACT to amend the criminal procedure law and the insurance law, in relation to charitable bail organizations THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 500.10 of the criminal procedure law is amended by adding an new subdivision 21 to read as follows: 21. "CHARITABLE BAIL ORGANIZATION" MEANS A NON-PROFIT ORGANIZATION ORGANIZED UNDER SECTION 501 (C) 3 OF TITLE 26 OF THE UNITED STATES CODE, REGISTERED AS A CHARITY PURSUANT TO ARTICLE SEVEN-A OF THE EXECUTIVE LAW, AND ORGANIZED FOR THE PURPOSE OF POSTING CASH BAIL ON BEHALF OF POOR PERSONS. A CHARITABLE CASH BAIL ORGANIZATION SHALL NOT CHARGE A PREMIUM NOR RECEIVE COMPENSATION FOR CASH BAIL GIVEN OR PROVIDED PURSU- ANT TO THIS CHAPTER. S 2. Paragraph 1 of subsection (a) of section 6801 of the insurance law is amended to read as follows: (1) Any person, firm or corporation, OTHER THAN A CHARITABLE BAIL ORGANIZATION AS DEFINED IN SUBDIVISION TWENTY-ONE OF SECTION 500.10 OF THE CRIMINAL PROCEDURE LAW, in any court having criminal jurisdiction or in any criminal action or proceeding who shall for another deposit money or property as bail or execute as surety any bail bond 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 arising out of the same tran- saction shall be deemed to be doing a bail bond business and doing an insurance business as defined in article eleven of this chapter. S 3. This act shall take effect on the ninetieth day after it shall have become a law.EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD11896-01-1