THE BAIL PROJECT, INC. v. INDIANA DEPARTMENT OF INSURANCE

CourtDistrict Court, S.D. Indiana
DecidedJune 29, 2022
Docket1:22-cv-00862
StatusUnknown

This text of THE BAIL PROJECT, INC. v. INDIANA DEPARTMENT OF INSURANCE (THE BAIL PROJECT, INC. v. INDIANA DEPARTMENT OF INSURANCE) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
THE BAIL PROJECT, INC. v. INDIANA DEPARTMENT OF INSURANCE, (S.D. Ind. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF INDIANA INDIANAPOLIS DIVISION

THE BAIL PROJECT, INC., ) ) Plaintiff, ) ) v. ) No. 1:22-cv-00862-JPH-MJD ) COMMISSIONER, INDIANA ) DEPARTMENT OF INSURANCE, ) ) Defendant. )

ORDER DENYING MOTION FOR PRELIMINARY INJUNCTION

The Bail Project is a nonprofit organization that pays cash bail for pretrial defendants. A new Indiana law, House Enrolled Act 1300, would require The Bail Project to be certified with the Indiana Department of Insurance and preclude it from paying cash bail for certain defendants. The Bail Project alleges that HEA 1300—which becomes effective July 1, 2022—violates the First Amendment's right to free speech and the Fourteenth Amendment's Equal Protection Clause. The Bail Project has filed a motion for a preliminary injunction that would prevent the Department of Insurance from enforcing HEA 1300 against it. Because The Bail Project has not shown a likelihood of success on the merits justifying a preliminary injunction, that motion is DENIED. Dkt. [6]. I. Facts & Background1 A. Pretrial Release in Indiana Indiana law "strongly encourages pretrial release for many accused individuals awaiting trial." DeWees v. State, 180 N.E.3d 261, 268 (Ind. 2022) (citing Ind. Cr. R. 26). Accordingly, "if a defendant presents no 'substantial risk of flight or danger' to others, the [state] court must consider releasing the defendant without money bail or surety." Id. (quoting Ind. Code §§ 35-33-8- 3.2(a); 35-33-8-3.8(a)).

The state court may decide, however, that a risk of flight or risks to public safety require money bail. Id. at 267–68. That money bail can be a surety bond, which requires a partial payment (usually 10 percent of the bail amount) to a bail-bond agent. Dkt. 25-1 at 11–12 (Embree Dep.). Or it can take the form of cash bail, which requires a full payment. Id. Generally, anyone can pay cash bail for a defendant. Id. at 8. B. The Bail Project

The Bail Project is a nonprofit corporation "committed to advocating for an end to cash bail and the system of conditioning a person's pretrial release from confinement upon the payment of money." Dkt. 25-2 at 1 (Gaspar Decl.). It believes that cash bail "will often be impossible for an indigent accused person to pay," resulting "in significant and potentially permanent disruption of

1 By agreement of the parties, there has been limited discovery and no evidentiary hearing. See dkt. 16; dkt. 17. The Court therefore bases these facts on the written record, including the complaint and designed evidence. the lives of individuals accused of a crime and that of their families, and further prolongs the cycle of poverty that entraps persons." Id. at 2. Because of those beliefs and the presumption of innocence, and to show

that "bail is not necessary to ensure court appearances," The Bail Project pays cash bail "at no cost" to its clients. Id. at 2–4. It also provides what it calls "Community Release with Support" to help clients by providing "reminders about court dates, transportation assistance, and voluntary referrals to social services and community resources." Id. at 3. The Bail Project provides these services in twenty states and has supported "more than 22,000 low-income persons" in appearing for over 72,000 court dates, "for a 92% appearance rate." Id. In Indiana, The Bail Project "has assisted approximately 1,000 pretrial

defendants" in Marion and Lake Counties. Id. at 5–6. In short, "The Bail Project's goal is to eliminate the need for its existence by demonstrating through its expressive advocacy of paying cash bail that bail is not necessary to ensure that persons appear for court appearances." Id. at 4. It "views this form of advocacy as far more persuasive than a rally, a social media post, a rented billboard, or contributing to political candidates." Id. at 5. C. House Enrolled Act 1300 In early 2022, the Indiana General Assembly passed, and Governor

Holcomb signed into law, House Enrolled Act 1300 (to be codified at Ind. Code § 27-10-2-4.1 et seq. (eff. July 1, 2022)). See dkt. 1 at 3–4. HEA 1300 requires the Indiana Department of Insurance's commissioner to regulate "a charitable bail organization," which is defined as a business entity or nonprofit organization "that exists for the purpose of paying case bail for another person."2 Ind. Code §§ 27-10-2-4.1; 27-10-2-4.5(a). HEA 1300 also outlines when a charitable bail organization may apply

for certification, and when the commissioner should certify the applicant: (b) The commissioner may certify a charitable bail organization if the charitable bail organization: (1) is a business entity, or a nonprofit organization under: (A) the Internal Revenue Code; or (B) Indiana law; (2) is currently registered to do business in Indiana; (3) is located in Indiana; and (4) exists for the purpose of depositing cash bail for an indigent defendant who: (A) is not charged with a crime of violence; or (B) if charged with a felony, does not have a prior conviction for a crime of violence.

(c) A person may apply for certification under this section in accordance with rules adopted under this section.

(d) The commissioner shall certify a person as a charitable bail organization if the: (1) person pays an application fee of three hundred dollars ($300); (2) person meets the requirements of this section; and (3) person, including an officer or director of the person, has not engaged in conduct that: (A) constitutes fraud, dishonesty, or deception;

2 HEA 1300 includes exceptions, not relevant here, if bail is paid for fewer than three people in a 180-day period or is paid for a relative. (B) constitutes malfeasance, misfeasance, or nonfeasance in dealing with money; or (C) resulted in the suspension or revocation of a previous certification.

* * * (f) The commissioner shall deny, suspend, revoke, or refuse to renew certification for any of the following causes: (1) Any cause for which issuance of the certification could have been refused had it then existed and been known to the commissioner. (2) Violation of any laws of this state in the course of dealings under the certification; (3) Material misstatement, misrepresentations, or fraud in obtaining the certification. (4) Misappropriation, conversion, or unlawful withholding of money belonging to donors or others and received in the conduct of business under the certification. (5) Fraudulent or dishonest practices in the conduct of business under the certification. (6) Willful failure to comply with or willful violation of any proper order or rule of the commissioner. (7) When, in the judgment of the commissioner, the certificate holder has, in the conduct of affairs under the certification, demonstrated: (A) incompetency or untrustworthiness; (B) conduct or practices rendering the certificate holder unfit to carry on charitable bail activities or making the certificate holder's continuance detrimental to the public interest; or (C) that the certificate holder is no longer in good fair carrying on as a charitable bail organization; and for these reasons is found by the commissioner to be a source of detriment, injury, or loss to the public. (8) The listing of the name of the applicant or certificate holder on the most recent tax warrant list supplied to the commissioner by the department of state revenue.

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