I have been doing bounty hunting for fun past week now. Finding and capturing targets still work as intended and it is good fun if done correctly. Sending players to prison is not working at all however. As we cannot be ever sure how hard it is pushed forward to get it working, admins are still aware of it.
I have talked with some support guys and with admins. They all say you can deliver smaller bounties to police and they can compensate the effort from their own pocket and then request the money back from higher ranked's. However this is not something they are bound to do and as I have been dropping quite alot of bounties to police I have yet to collect single reward from them, they all bash me to ground and start blaming me for interrupting their day etc... Im aware there are also cops who have stated that they will compensate the bounty if they are contacted.
However IF you happen to collect someone with higher bounty, police cant naturally just compensate millions from their own pocket. In this case you are allowed to contact admin and kindly request for compensation from them. What you need to do is to take the bounty to prison and request admin meetup over there. Admin will then send the person to prison and his bounty will be cleared. In this case make sure you have the chase and the arrest recorded or you have something to proof you did all by the book. Admin will then compensate you the bounty. I'm not aware how much is the exact payout, but at least we got 75% of the bounty amount. If you cannot get admin to compensate you at that time I think best option would be to take that proof and have the person send to prison by police officer and then go to compensation forums with the proof.
But as the system is totally unusable right now I would say just do it for the fun, not for the money. Use other ways to get your money and just drop those bounties to police. Bounty hunting is really lot of fun when you catch the dude you are hunting for, arresting someone is the reward by it self as usually it needs lot of work to get someone busted as BH.