Seven D.C. residents, a majority of whom are street vendors, filed a lawsuit against D.C. over its Clean Hands Law, arguing that disqualifying them from getting an occupational or small business license because they cannot afford to pay their outstanding debt to the city government violates their constitutional protections.
The lawsuit was filed in federal court Tuesday evening is the second legal action against the contentious law in under a year; the plaintiffs in the complaint filed last summer prevailed in court.
“This case challenges a poverty trap the District of Columbia imposes on its most vulnerable and impoverished residents,” the most recent lawsuit reads.
The District, including Department of Licensing and Consumer Protection Interim Director Shirley Kwan-Hui and DC Health Interim Director Sharon Lewis, who approve small business and occupational licenses, are named defendants in the case. Spokespeople for the District offices did not respond to request for comment.
The Clean Hands Law, which first passed in 1996, denies residents specific city goods and services, including licenses, grants, and contracts, if they owe more than $100 in local fees, fines, taxes, or penalties. The law used to apply to driver’s licenses. too – but the council passed legislation last summer changing that. Lawmakers believed their bill would reduce racial inequities because Black and brown residents are disproportionately impacted by debt.
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