All of the above. It is a talent you get from arresting civ's with a bounty. Once you learn the talent, you are then able to purchase the Bounty-Hunter (see what I did there?)
Maybe that is because we like to keep the chat free of anything that could be viewed as racist remarks? It may not offend you, but it might offend someone else
Ask the BH'ers that submitted comp if I denied them. Now you may not get a full comp, due to the fact that there isn't any 100% certainty you would have been able to send them to jail. (i/e friends grabbing them, vehicle accidents, etc)