Brief Road to Reform: State Approaches to Addressing Debt-Based Driver’s License Suspensions

Introduction 

Nearly 11 million people in the United States have faced driver's license suspensions, not because they are dangerous drivers, but due to debt-based reasons, such as failure to pay traffic fines or court fees, failure to appear in court or pay child support.  

The common practice of using license suspension to enforce compliance with laws unrelated to highway safety lacks empirical evidence supporting its effectiveness. Research suggests these suspensions disproportionately affect individuals with lower economic status and people of color, and hinders an individual’s access to employment, health care and other essential needs. Concerns also arise about diverting law enforcement resources toward less serious offenses, negatively impacting public safety. 

A study by the New Jersey Department of Transportation revealed that nearly 45% of drivers in the state experienced job loss following license suspension, with an equal number struggling to find alternative employment during the suspension period. Because suspensions often last until the full fine is paid, compounded by late fees and interest, individuals can remain in debt indefinitely. Moreover, continuing to drive during a suspension, even for work or school, may lead to additional criminal sanctions and incarceration. 

Organizations like the American Association of Motor Vehicle Administrators suggest that states and jurisdictions can consider interventions, such as suspending licenses only for failure to appear in court or pay fines related to highway safety violations, to mitigate the consequences of these suspensions.  

Similarly, The Free to Drive Coalition advocates for limitations on driving privileges solely for dangerous driving offenses, rather than using them to coerce debt payment or punish individuals who miss a traffic hearing. 

Some argue that ending debt-based driver’s license suspensions could have a negative fiscal impact for the state. However, a 2019 report highlights that license suspensions for debt-related reasons are both expensive and inefficient in generating revenue. The report found that jurisdictions spent more than 42 cents for every dollar they collected over the period studied on in-court hearings and jail costs enforcing these laws.  

Policymakers are beginning to recognize the unintended consequences of monetary penalties and legal financial obligations associated with debt-based driver’s license suspensions. Since 2017, at least 25 states and the District of Columbia have passed largely bipartisan legislation to curb or eliminate the use of driver's license suspensions and driving privilege restrictions for unpaid fines and fees. These reforms commonly involve eliminating suspensions for non-payment or failure to appear for certain citations or implementing partial reforms in these areas. 

Failure to Pay and Appear Definitions

Failure to Pay applies when an individual does not pay the fines or fees associated with traffic violations, citations, or other offenses, some jurisdictions may impose a driver's license suspension. This is often referred to as a debt-based suspension because it is directly tied to the financial obligations owed by the individual. 

Failure to Appear  refers to instances where an individual receives a ticket for a traffic infraction or other offense and does not respond. This includes failing to pay fines associated with such infractions, pleading not guilty or missing a scheduled court hearing related to the offense. Failure to appear may lead to a debt-based driver's license suspension.

Driver’s License Suspension Reforms for Failure to Pay or Appear 

California, Colorado, Idaho, New Mexico and Virginia are among a handful of states that no longer suspend, revoke or prohibit driver’s license renewals for failure to pay fines and fees and/or appear in court.  

California (AB 103, 2017) was among the first states to stop suspending driver's licenses due to unpaid fines and fees. The law retroactively restored driver's licenses for those whose licenses were suspended before the reforms were implemented. The law does not resolve all types of suspensions, particularly those related to impaired driving. 

According to the Free to Drive Coalition, the law restored 450,000 driver's licenses after its passage. Additionally, in the year following the end of driver's license suspensions for failure to pay a traffic ticket, on-time collection rates across the state improved by 8.9%. As of 2022, California (HB 2746) no longer suspends driver's licenses for failure to appear in court for cases involving fines and fees for citations like traffic tickets, which lifted over 400,000 driver's license suspensions. 

Similarly, Colorado (HB 1314, 2021) prohibited the Department of Revenue from revoking driver’s licenses or permits for reasons such as failing to pay fines and fees or missing a court appearance related to traffic violations, failure to present a transit press related coupon or underage possession or consumption of marijuana or alcohol (residents can still lose their licenses if they accumulate too many points for driving infractions). Before Colorado passed HB 1314, the state estimated it took 18,646 hours per year of staff time, or nine full-time employees, to process and hold hearings for driver’s license suspensions unrelated to driving safety. 

To address concerns about lost revenue from individuals who pay fees to reinstate their licenses, the legislation compensated for the projected shortfall by transferring funds from the Marijuana Cash Tax Fund to the Licensing Services Cash Fund. The law also allowed the General Assembly to allocate funds from the Marijuana Tax Cash Fund to the Judicial Department for trial court programs. 

Idaho (HB 599, 2018) ended driver's license suspensions for failure to pay an infraction penalty. Previously, licenses were suspended for nonpayment of infraction fines and fees, which included most traffic violations. So far, there’s no evidence the change has affected collection rates on infraction cases.  

New Mexico (SB 47, 2023) ended driver’s license suspensions for missed court hearings and overdue fines and fees owed in criminal and traffic cases. The state still suspends or revokes licenses in cases of dangerous driving behavior such as impaired driving or accruing excessive points from traffic infractions. The legislation allowed the New Mexico Motor Vehicle Division to lift the suspension of driver’s licenses for more than 100,000 individuals.  

Partial Driver’s License Suspension Reforms for Failure to Pay or Appear 

Some states have implemented partial reforms or exceptions to their failure-to-pay laws. States like Arizona, Georgia, Indiana and Washington have ceased suspending driver’s licenses for failure to pay fines or appear in court, though they incorporate exceptions or alternative restrictions. 

Arizona (SB 1551, 2021) ended debt-based driver's license suspensions for failing to pay civil traffic penalties like parking tickets or failing to appear in court. However, the state still suspends or holds vehicle registrations for unpaid fines and fees until an individual agrees to a payment plan. The Arizona Department of Transportation reported that 31,000 licenses were reinstated on the day the law went into effect. 

Georgia (Ga. Code § 40-6-189) does not suspend driver's licenses for failure to pay fines and fees but licenses are suspended for failure to pay the $200 "super speeder" fine within 90 days of receipt. This fine applies to drivers who were ticketed for traveling at speeds of 75 miles per hour or faster on a two-lane road, or 85 miles per hour or faster on other roads or highways. 

Indiana (HB 1199, 2021) ended driver’s license suspension for failure to appear, but the law only allows drivers to avoid suspension for failure to pay if they provide proof of auto insurance. The law does not apply to individuals whose licenses have been suspended for moving violations such as impaired or reckless driving.  

Washington (SB 5226, 2021) enacted legislation that still allows courts to revoke or suspend a person’s driver’s license if they don’t pay an ordered fine or fee. However, this suspension is only enforced if they also neglect to attend their court hearing to pay, contest or arrange a payment plan.  

Virginia (HB 1700, Amendment 33, 2019) passed a temporary budget amendment measure that ended the practice of suspending driver’s licenses for unpaid fines and fees. However, the state made this practice permanent in 2020 and further removed failure to appear as a reason for suspension (SB 1). The change does not apply to violations like unpaid tolls, failure to pay child support or driving with a suspended license. The temporary measure alone restored more than half a million licenses, retroactively.  

Federal Debt-Based Driver’s License Suspension Reform 

While several states have acted to end debt-based driver's license suspensions, federal lawmakers are pushing for broader change with the bipartisan Driving for Opportunity Act. This legislation aims to support states in reinstating suspended licenses by providing grants to cover the costs associated with reform programs. These grants could be used to offset any financial burden of reinstatement, assist individuals in areas with limited public transportation and establish programs that help more people regain their driving privileges. The act was first considered in 2021 and reintroduced in 2023.