You are correct, sir. My mistake. I meant they would voluntarily refrain from unlawful bounties on characters not designated as 1%ers, not that those bounties were not available to the ID.
Otherwise, a few screenshots of members committing crimes will get the whole club fr5ed and/or the idea of the 1%er goes out the window for fear of it.
I definitely phrased the one part poorly, but what about the idea mechanically? I think those that prefer or end up on the seedier side would get the freedom to be bad, while keeping the legal side available to race and trade without hindrance.
The ID would have bad rep with lawfuls, so maybe it could work out as a way to appease law enforcement. Say a member gets in trouble smuggling and doing unlawful bounties, you don't deny he's in the club because with his colors you can't. Instead, you say publicly to the cops "He must be one of that 1%er gang. We don't support illegal activity, we're a racing club." and they get their 1%er ID that applies the necessary diplomacy adjustments.
Then it would also occur more naturally. Rather than deciding to be a 1%er by completing a task, it could come as a natural reaction to law enforcement pressure. That way, the distinction is earned by a proven track record rather than one single moment.