Remove Barriers to Employment from Court Debt.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 694

Short Title: Remove Barriers to Employment from Court Debt. (Public)
Sponsors: Senators Sawrey, Britt, and Daniel (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S694-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO REMOVE BARRIERS TO EMPLOYMENT DUE TO COURT DEBT AND TO 2
APPROPRIATE FUNDS TO IMPLEMENT A TEXT REMINDER SYSTEM FOR COURT 3
DATES. 4
The General Assembly of North Carolina enacts: 5
6
SET AUTOMATIC EXPIRATION OF LICENSE REVOCATIONS BASED SOLELY ON 7
THE NONPAYMENT OF FINE, PENALTY, OR COST FOR MOTOR VEHICLE 8
OFFENSES 9
SECTION 1.(a) G.S. 20-24.1 reads as rewritten: 10
"§ 20-24.1. Revocation for failure to appear or pay fine, penalty or costs for motor vehicle 11
offenses. 12
(a) The Division must revoke the driver's license of a person upon receipt of notice from 13
a court that the person was charged with a motor vehicle offense and he:did any of the following: 14
(1) failed Failed to appear, after being notified to do so, when the case was called 15
for a trial or hearing; orhearing. 16
(2) failed to pay a fine, penalty, or court costs ordered by the court. 17
Revocation orders entered under the authority of this section are effective on the sixtieth day 18
after the order is mailed or personally delivered to the person. 19
(b) A license revoked under this section remains revoked until the person whose license 20
has been revoked:revoked does any of the following: 21
(1) disposesDisposes of the charge in the trial division in which hethe person 22
failed to appear when the case was last called for trial or hearing; orhearing. 23
(2) demonstratesDemonstrates to the court that hethe person is not the person 24
charged with the offense; oroffense. 25
(3) pays the penalty, fine, or costs ordered by the court; orcourt. 26
(4) demonstrates to the court that his failure to pay the penalty, fine, or costs was 27
not willful and that he is making a good faith effort to pay or that the penalty, 28
fine, or costs should be remitted. 29
Upon receipt of notice from the court that the person has satisfied the c onditions of this 30
subsection applicable to histhe person's case, the Division must restore the person's license as 31
provided in subsection (c). In addition, if the person whose license is revoked is not a resident of 32
this State, the Division may notify the driver licensing agency in the person's state of residence 33
that the person's license to drive in this State has been revoked. 34
… 35
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 694-First Edition
(b2) Notwithstanding any provision of law to the contrary, a license revoked pursuant only 1
to subdivision (2) of subsection (a) of this section, unless that revocation is related to an offense 2
under G.S. 20-138.1, shall be restored after 36 months have passed following the date of the 3
license holder's most recent conviction for an offense under Chapter 20 of the General Statutes. 4
A license holder whose license is restored pursuant to this subsection shall be required to pay the 5
restoration fee set by G.S. 20-7(il). 6
Upon termination of suspensions pursuant to this subsection, the Division shall provide notice 7
to each person whose license suspension was terminated by first-class mail to the address on file 8
with the Division. The notice shall inform the person of the other legal consequences associated 9
with continued failure to pay fines and the options for resolution of any fines an d fees that they 10
owe. The Division shall post information to its website about the termination of suspensions 11
pursuant to this subsection. 12
The Administrative Office of the Courts and the Division of Motor Vehicles shall develop a 13
procedure to implement license restorations under this subsection. 14
(c) If the person satisfies the conditions of subsection (b) that are applicable to histhe 15
person's case before the effective date of the revocation order, the revocation order and any 16
entries on histhe person's driving record relating to it shall be deleted and the person does not 17
have to pay the restoration fee set by G.S. 20-7(i1). For all other revocation orders issued 18
pursuant to this section, G.S. 50-13.12 or G.S. 110-142.2, the person must pay the restoration fee 19
and satisfy any other applicable requirements of this Article before the person may be relicensed. 20
(d) To facilitate the prompt return of licenses and to prevent unjustified charges of driving 21
while license revoked, the clerk of court, upon request, must give the person a copy of the notice 22
it sends to the Division to indicate that the person has complied with the conditions of subsection 23
(b) applicable to histhe person 's case. If the person complies with the condition before the 24
effective date of the revocation, the notice must indicate that the person is eligible to drive if 25
hethe person is otherwise validly licensed. 26
… 27
(f) If a license is revoked under subdivision (2) of subsection (a) of this section, and for 28
no other reason, the person subject to the order may apply to the court for a limited driving 29
privilege valid for up to one year or until any fine, penalty, or court costs ordered by the court 30
are paid. The court m ay grant the limited driving privilege in the same manner and under the 31
terms and conditions prescribed in G.S. 20-16.1. A person is eligible to apply for a limited driving 32
privilege under this subsection only if the person has not had a limited driving privilege granted 33
under this subsection within the three years prior to application." 34
SECTION 1.(b) G.S. 20-24.2 reads as rewritten: 35
"§ 20-24.2. Court to report failure to appear or pay fine, penalty or costs. 36
(a) The court must report to the Division the name of any person charged with a motor 37
vehicle offense under this Chapter who:who does any of the following: 38
(1) Fails to appear to answer the charge as scheduled, unless within 20 days after 39
the scheduled appearance, hethe person either appears in court to answer the 40
charge or disposes of the charge pursuant to G.S. 7A-146; or7A-146. 41
(2) Fails to pay a fine, penalty, or costs within 40 days of the date specified in the 42
court's judgment. 43
…." 44
SECTION 1.(c) G.S. 15A-1116(a) reads as rewritten: 45
"(a) Use of Contempt or Fine Collection Procedures: Notification of DMV. – If the person 46
does not comply with a sanction ordered by the court, the court may proceed in accordance with 47
Chapter 5A of the General Statutes. If the person fails to pay a penalty or costs, the court may 48
proceed in accordance with Article 84 of this Chapter. If the infraction is a motor vehicle 49
infraction, the court must report a failure to pay the applicable penalty and costs to the Division 50
of Motor Vehicles as specified in G.S. 20-24.2." 51
General Assembly Of North Carolina Session 2025
Senate Bill 694-First Edition Page 3
SECTION 1.(d) This section becomes effective December 1, 2025, and applies to 1
license revocations issued before, on, or after that date. 2
3
COLLECT DATA TO MONITOR IMPLEMENTATION AND MEASURE IMPACT 4
SECTION 2.(a) No later than October 1, 2025, the Division of Motor Vehicles shall 5
collect data and publish a report that shows, as of a result of this act, all of the following 6
information: 7
(1) The total number of suspensions on account of failure to pay fines or fees that 8
were terminated, disaggregated by race, ethnicity, gender, and zip code of 9
residence of the person with the suspension; the length of the suspension; the 10
charge; the charge level; and court. 11
(2) The total number of people whose licenses were reinstated, dis aggregated by 12
race, ethnicity, gender, and zip code of residence. 13
(3) The total number and amount of fees, including reinstatement fees, that were 14
waived. 15
(4) The total amount of fines and fees related to a prosecution of Driving While 16
License Revoked that were waived. 17
SECTION 2.(b) Article 2 of Chapter 20 of the General Statutes is amended by 18
adding a new section to read: 19
"§ 20-24.4. Data collection. 20
The Administrative Office of the Courts shall collect data related to compliance and 21
collections from cou rts that adjudicate motor vehicle offenses. All data presented shall be 22
disaggregated by county, court, charge, as well as demographic information about the person 23
against whom the fine or fee was levied, or who was prosecuted, including race, and gender. At 24
a minimum, the data collected shall include all of the following: 25
(1) The total amount of fines and fees debt imposed in the preceding year. 26
(2) The total amount of fines and fees collected in the preceding year. 27
(3) The total amount of fines and fees waived, in full or in part, in the preceding 28
year." 29
30
FORGIVENESS OF OUTSTANDING FINES AND FEES ASSOCIATED WITH 31
PREVIOUS DWLR CONVICTIONS IF UNDERLYING SUSPENSION WAS DUE TO 32
FAILURE TO PAY 33
SECTION 3. G.S. 20-28 is amended by adding a new subsection to read: 34
"(a4) As of October 1, 2025, if a person has unpaid fines and fees that result from a charge 35
pursuant to subsection (a) of this section, the person or a prosecutor may petition the sentencing 36
court for remission of the fines and fees or any unpaid portion of it. If the court finds that the 37
person's drivers license is suspended solely pursuant to G.S. 20-24.1(a)(2), the court shall order 38
the remission." 39
40
CONFORMING AMENDMENTS 41
SECTION 4.(a) G.S. 20-13.2(e) reads as rewritten: 42
"(e) Before the Division restores a driver's license that has been suspended or revoked 43
under any provision of this Article, other than G.S. 20-24.1, Article, the person seeking to have 44
his driver's license restored shall submit to the Division proof that he has notified his insurance 45
agent or company of his seeking the restoration and that he is financially responsible. Proof of 46
financial responsibility shall be in one of the following forms: 47
(1) A written certificate or electronically -transmitted facsimile thereof from any 48
insurance carrier duly authorized to do business in this State certifying that 49
there is in effect a nonfleet private passenger motor vehicle liability policy for 50
the benefit of the person required to furnish proof of financial responsibilit y. 51
General Assembly Of North Carolina Session 2025
Page 4 Senate Bill 694-First Edition
The certificate or facsimile shall state the effective date and expiration date of 1
the nonfleet private passenger motor vehicle liability policy and shall state the 2
date that the certificate or facsimile is issued. The certificate or facsimile shall 3
remain effective proof of financial responsibility for a period of 30 4
consecutive days following the date the certificate or facsimile is issued but 5
shall not in and of itself constitute a binder or policy of insurance or 6
(2) A binder for or policy of nonflee t private passenger motor vehicle liability 7
insurance under which the applicant is insured, provided that the binder or 8
policy states the effective date and expiration date of the nonfleet private 9
passenger motor vehicle liability policy. 10
The preceding pro visions of this subsection do not apply to applicants who do not own 11
currently registered motor vehicles and who do not operate nonfleet private passenger motor 12
vehicles that are owned by other persons and that are not insured under commercial motor vehicle 13
liability insurance policies. In such cases, the applicant shall sign a written certificate to that 14
effect. Such certificate shall be furnished by the Division and may be incorporated into the 15
restoration application form. Any material misrepresentation made by such person on such 16
certificate shall be grounds for suspension of that person's license for a period of 90 days. 17
For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 18
the definition ascribed to it in Article 40 of General Statute Chapter 58. 19
The Commissioner may require that certificates required by this subsection be on a form 20
approved by the Commissioner. The financial responsibility required by this subsection shall be 21
kept in effect for not less than three years after the date that the license is restored. Failure to 22
maintain financial responsibility as required by this subsection shall be grounds for suspending 23
the restored driver's license for a period of thirty (30) days. Nothing in this subsection precludes 24
any person from showing proof of financial responsibility in any other manner authorized by 25
Articles 9A and 13 of this Chapter." 26
SECTION 4.(b) G.S. 20-19(k) reads as rewritten: 27
"(k) Before the Division restores a driver's license that has been suspen ded or revoked 28
under G.S. 20-138.5(d), or under any provision of this Article, other than G.S. 20-24.1, Article, 29
the person seeking to have the person's driver's license restored shall submit to the Division proof 30
that the person has notified the person's insurance agent or company that the person is seeking 31
the restoration and that the person is financially responsible. Proof of financial responsibility 32
shall be in one of the following forms: 33
(1) A written certificate or electronically -transmitted facsimile thereof from any 34
insurance carrier duly authorized to do business in this State certifying that 35
there is in effect a nonfleet private passenger motor vehicle liability policy for 36
the benefit of the person required to furnish proof of financial responsibi lity. 37
The certificate or facsimile shall state the effective date and expiration date of 38
the nonfleet private passenger motor vehicle liability policy and shall state the 39
date that the certificate or facsimile is issued. The certificate or facsimile shall 40
remain effective proof of financial responsibility for a period of 30 41
consecutive days following the date the certificate or facsimile is issued but 42
shall not in and of itself constitute a binder or policy of insurance. 43
(2) A binder for or policy of nonfle et private passenger motor vehicle liability 44
insurance under which the applicant is insured, provided that the binder or 45
policy states the effective date and expiration date of the nonfleet private 46
passenger motor vehicle liability policy. 47
Subdivisions (1) and (2) of this subsection do not apply to applicants who do not own 48
currently registered motor vehicles and who do not operate nonfleet private passenger motor 49
vehicles that are owned by other persons and that are not insured under commercial motor vehicle 50
liability insurance policies. In such cases, the applicant shall sign a written certificate to that 51
General Assembly Of North Carolina Session 2025
Senate Bill 694-First Edition Page 5
effect. Such certificate shall be furnished by the Division and may be incorporated into the 1
restoration application form. Any material misrepresentation made by such person on such 2
certificate shall be grounds for suspension of that person's license for a period of 90 days. 3
For the purposes of this subsection, the term "nonfleet private passenger motor vehicle" has 4
the definition ascribed to it in Article 40 of General Statute Chapter 58. 5
The Commissioner may require that certificates required by this subsection be on a form 6
approved by the Commissioner. The financial responsibility required by this subsection shall be 7
kept in effect for not less than thre e years after the date that the license is restored. Failure to 8
maintain financial responsibility as required by this subsection shall be grounds for suspending 9
the restored driver's license for a period of 30 days. Nothing in this subsection precludes any 10
person from showing proof of financial responsibility in any other manner authorized by Articles 11
9A and 13 of this Chapter." 12
SECTION 4.(c) G.S. 20-28.1(a) reads as rewritten: 13
"(a) Upon receipt of notice of conviction of any person of a motor vehicle moving offense, 14
such offense having been committed while such person's driving privilege was in a state of 15
suspension or revocation, the Division shall revoke such person's driving privilege for an 16
additional period of time as set forth in subsection (b) hereo f. For purposes of this section a 17
violation of G.S. 20-7(a), 20-24.1, G.S. 20-7(a) or 20-28(a) G.S. 20-28(a) or (a2) shall not be 18
considered a "motor vehicle moving offense" unless the offense occurred in a commercial motor 19
vehicle or the person held a commercial drivers license at the time of the offense." 20
SECTION 4.(d) G.S. 20-217(g2) reads as rewritten: 21
"(g2) Pursuant to G.S. 20-54, failure of a person to pay any fine or costs imposed pursuant 22
to this section shall result in the Division withholding the registration renewal of a motor vehicle 23
registered in that person's name. The clerk of superior court in the county in which the case was 24
disposed shall notify the Division of any person who fails to pay a fine or costs imposed pursuant 25
to this section within 40 days of the date specified in the court's judgment, as required by 26
G.S. 20-24.2(a)(2). judgment. The Division shall continue to withhold the registration renewal 27
of a motor vehicle until the clerk of superior court notifies the Division that the person has 28
satisfied the conditions of G.S. 20-24.1(b) applicable to the person's case. The provisions of this 29
subsection shall be in addition to any other actions the Division may take to enforce the payment 30
of any fine imposed pursuant to this section." 31
SECTION 4.(e) G.S. 110-142.2(f) reads as rewritten: 32
"(f) Upon receipt of certification under subsection (d) or (e) of this section, the Division 33
of Motor Vehicles shall reinstate the license to operate a motor vehicle in accordance with G.S. 34
20-24.1, upon payment of the restoration fee and remove any restriction of the individual's motor 35
vehicle registration." 36
37
AMEND EFFECTIVE DATE FOR S.L. 2015-186 38
SECTION 5. Section 7 of S.L. 2015 -186, as amended by Section 86 of S.L. 39
2015-264, reads as rewritten: 40
"SECTION 7. This act becomes effective December 1, 2015, and applies to offenses 41
committed on on, before, or after that date. Prosecutions for offenses committed before the 42
effective date of this act are not abated or affected by this act, and the statutes that would be 43
applicable but for this act remain applicable to those prosecutions." 44
45
EFFECTIVE DATE 46
SECTION 6. Except as otherwise provided, this act becomes effective July 1, 2025. 47