Driving for Opportunities
Concerns with the Legislation
- Although there are well-intentioned aspects of the Driving for Opportunities Act, such as keeping consumers employed and mobile, a more tailored approach with fewer unintended consequences is necessary.
- Under the CARES Act, local governments were eligible for receipt of direct payments. They sought more funding in additional stimulus packages.
- The Driving for Opportunities Act means higher taxes and/or higher fine amounts, less court services, staff layoffs, or a combination of those things in city, county, and state courts across the country.
- During a time when local governments need more resources, it does not make sense to take a legitimate source of revenue away, particularly one that has a public safety component keeping American families across the country safe.
- Many cities and local municipalities are already suffering as a result of COVID-19. This will take away another legitimate source of revenue and may accelerate layoffs and the reduction of legal services.
The Economic Impact of Third-Party Debt Collection
Projected Economic Impact
• The state of Oregon recently passed a law similar to the Driving for Opportunities Act. Before the law passed, private collection firms were collecting approximately $8.5 million per biennium through a license reinstatement program in cases where the license was suspended for either failure to pay a fine or failure to appear in court. As a result, a loss of revenue of nearly $5 million a year will impact local law enforcement officials and court services going forward.
• If the Driving for Opportunities Act were to become law, this number will be multiplied by many states throughout the country. It will result in millions of dollars of lost revenue that will be passed on to consumers following the law in the form of increased fines and taxes.
• Resources impacting the judicial economy throughout the country are already causing many Americans to have long waits for their day in court, that limit their individual liberties and legal rights. A result of taking this legitimate revenue source away, limited resources and smaller court staffs will likely make the burden and time frame to receive justice through litigation even greater.
Alternative Ideas to Help Workers but Not Harm all Consumers
• The talking points about this bill claim that, “It would change the law so states are not punished for declining to suspend driver’s licenses for drug offenses and, instead, are incentivized not to suspend for unpaid fines and fees.” However, this distinction does not align with the broad text of the bill. This needs to be more narrowly defined.
• Tailored amnesty programs that allow indigenous people who truly cannot afford to pay fines or fees make sense, but the broad actions in the Driving for Opportunities Act will reward people for not following the law and not paying fines.