The Bail Project appealed to block the law, which was passed last year, saying it's unconstitutional and unfairly targets charitable bail organizations.
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While the bill passed the state House, it failed in the Senate.
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The Indiana General Assembly has more work to do at the Statehouse, with Gov. Eric Holcomb calling the legislature back for a special session on July 6.
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The recent case of 21-year-old Quintez Brown, who was released from jail Wednesday after the Louisville Community Bail Fund posted his $100,000 bond, has added fuel to the debate.