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Battle of the bonds

David Cole | Hagadone News Network | UPDATED 12 years, 9 months AGO
by David Cole
| February 19, 2012 8:00 PM

COEUR d'ALENE - A battle of sorts is shaping up in the bail bonds business in Idaho.

On one side, smaller bail bonds businesses say they're tired of getting into bidding wars for business, and allowing prisoners to dictate to them how much they're willing to pay.

They don't want prisoners getting out for less than 10 percent of the bail amount set by courts.

On the other side, larger bail bonds companies - such as Aladdin Bail Bonds and Big Dawg Bail Bonds - are happy to go lower than 10 percent. They want to continue offering what in the industry is called "credit bail." That's an option that allows a prisoner to make payments to a bail bond company if they can't come up with the thousands of dollars often required to meet the 10 percent.

One of the little guys is Quick Release Bail Bonds, in Dalton Gardens.

Dale Foss of Quick Release said, "The inmates are pitting us against each other, and they're determining how much they're going to pay to get out of jail."

He added: "It's kind of frustrating when people call you up and start talking about payment plans. It's undermining the system as it was originally designed."

Bail agents take the 10 percent, and then draw up something similar to an insurance policy before getting a prisoner out.

The insurance policy promises the court the prisoner will show up for court appearances. The 10 percent is then pocketed by the bail bonds business.

With 10 percent of the bail amount invested, it's less likely a released prisoner would skip out on court dates.

John Duvall, a lobbyist for the Professional Bail Agents of Idaho, calls it the "pound of flesh."

Duvall started the association in 1989, and Foss and others are a part of it.

He'll be working in Boise to get legislation passed to eliminate credit bail, or seriously restrict it.

He said he has the support of Mothers Against Drunk Driving and the Idaho Coalition Against Sexual and Domestic Violence, among others.

CJ Nemeth, President of Professional Bail Agents of Idaho Inc., said, "We believe that the courts are disgruntled. Because people are getting out for less than 10 percent."

In addition to being president of the association, Nemeth runs Astro Bail Bonds, in Mountain Home.

Getting out for only 10 percent of the bail amount is a good deal, she said. "Now they want more of a discount."

Magistrate Clark Peterson, in Kootenai County, said he couldn't comment on the issue as an acting judge. Magistrate Penny Friedlander, in Kootenai County, didn't respond to a request for comment.

Kootenai County Prosecutor Barry McHugh said, "I haven't heard from anybody asking me to take action on this."

He said he's seen no evidence that credit bail makes people less likely to show up for court.

"It hasn't come to my attention as a problem," McHugh said.

"It really doesn't impact the way we do business," said Maj. Ben Wolfinger of the Kootenai County Sheriff's Department. "It's really not a factor to us."

Besides, he said, "The American way is on competition."

Bail agents like Foss and Nemeth, with the help of Duvall, are pushing Senate Bill 1325.

There's going to be plenty of opposition to SB 1325, which is starting in the Judiciary and Rules committee in the Senate. It started there last year, too, but didn't even get a hearing.

Duvall said the bill is almost identical to what was brought up last year, with some word changes and a sentence removed.

Basically, it would just require that bail agents collect all of the 10 percent of the bail amount at the time the prisoner is released from custody.

"It simply prevents the defendant from putting bail agents in a bidding competition against each other to see who will obtain the defendant's release on the most lenient terms," according to the bill's statement of purpose. It said the effect would be improved public safety. It also would provide uniformity so the court and law enforcement will know when bail is set what will be required of the defendant seeking release. It would lastly restore tradition, the statement of purpose said.

No senators or representatives have come forward with support.

State Sen. Denton Darrington, the Republican chairman of the committee, said the bill would either outlaw or make credit bail very difficult.

He doesn't plan to schedule a hearing this coming week, but possibly the following one, he said.

He's heard that there are judges on both sides of the issue.

For himself, "I haven't taken a position on it."

When it goes to hearing, he predicts there will be lots of interest. He said Aladdin has lobbyists working hard against the bill. For Idaho, Aladdin operates mostly in the Boise area. It's a California business.

Kevin Elliott, of Big Dawg Bail Bonds, with locations throughout Idaho including Coeur d'Alene and Sandpoint, said he's against SB 1325.

"I just think it should be left to choice," Elliott said.

Of the legislation, he said, "It's somebody trying to legislate the competition away."

He said sometimes people can't afford the 10 percent, and they should have the opportunity to get out of jail and better defend themselves and go to work and take care of their families.

Prisoners should be allowed to make monthly payments if necessary to make their bail amount.

"At least give him a fighting chance," Elliott said.

Credit bail also helps reduce overcrowding in jails, he said.

He said the bail companies seeking the legislation "just don't want to do the financing portion of it."

He doesn't feel like it undermines judges' authority.

"Bail isn't to be used as a punishment, it's a way to make sure they show up to court," he said.

Credit bail should be an option for every bail bond company.

"We should be able to finance bail bonds, just like people finance anything else," he said. "Bail bonds shouldn't be singled out."

The legislation is basically just an effort by a bunch of little bail bond companies to legislate Aladdin out of business, he said.

"They can compete, they just don't choose to," he said.

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