There is an earning loss of $9 billion associated with the second chance sealing and second chance relicensing in Texas.
Contact with the criminal legal system and sanctions such as driver’s license suspensions can result in limited employment opportunities and have lifelong impacts on a person’s potential earnings. To advance economic interests and remove barriers to work, Texas introduced second chance laws that allow people to have their criminal records sealed and restore occupational driver’s licenses (ODLs) to drive to work and school. However, administrative barriers, including lack of awareness, unclear criteria, burdensome application processes, and fines and fees, contribute to a gap between those who are eligible and those who are successful in obtaining record sealing and license restoration. This study estimates the national loss of income (1) resulting from misdemeanor and felony convictions that linger on one’s public record and (2) the national estimated annual income loss due to having one’s driver’s license suspended for unpaid fines and fees. The authors then apply those figures to Texas as a case study to show how this translates to actual losses across the state.
Note: Although the authors applied their national estimates to specific data in Texas, these estimates can be used in any state.
You can read the full text here and access an additional summary here.
Key Findings:
- The national average annual loss associated with misdemeanor and felony convictions is $5,100 and $6,400 per year, respectively.
- In Texas, 95 percent of those eligible to have their record sealed have not done so. This results in an annual earning loss of nearly $3.5 million for people who have not had their records sealed.
- The national estimated loss associated with a suspended driver’s license is $12,700 annually, per suspension.
- In Texas, those whose driver’s license has been suspended for unpaid fines and fees may be eligible for an “occupational driver’s license” that allows them to drive only to work or school. The researchers found that 430,000 people eligible to apply for these licenses had not obtained one. This resulted in an estimated loss of $5.5 billion in earnings annually.
- It would take 255 years to clear the backlog of people eligible for record sealing and 27 years for those eligible for Occupational Driver’s License restoration.
- Black people and low-income individuals are overrepresented in both driver’s license suspensions and criminal convictions compared to Texas’s population.
Recommendations:
- Eliminate fines and fee requirements for the administration of second chances.
- Automate record sealing and ODLs for those who are eligible.