SB 234
Department of Legislative Services
Maryland General Assembly
2020 Session
FISCAL AND POLICY NOTE
Third Reader - Revised
Senate Bill 234 (The President, et al.) (By Request - Office of the
Attorney General)
Judicial Proceedings Judiciary
Vehicle Laws - Suspension of Driver's License or Registration - Unpaid Citations
or Judgments
This bill restricts the ability of the Motor Vehicle Administration (MVA) to suspend a
driver’s license for nonpayment of a traffic citation or judgment (including nonpayment of
an installment plan agreement made with the District Court or a circuit court). Instead, the
court may refer the amount of the unpaid outstanding fine to the Central Collection Unit
(CCU) to pursue payment. The fine threshold an individual must meet to enter into an
installment plan is reduced (from $300 to $150), and payment under such a plan may be
made over any time period, rather than over 10 months. The bill retroactively applies to
any driver’s license or driving privilege actively suspended under a provision affected by
it; thus, MVA must withdraw those suspensions. The bill makes numerous conforming
changes, including codifying the required contents of traffic citations. The Department of
Legislative Services (DLS) must conduct a study related to installment plans.
Fiscal Summary
State Effect: General fund and Transportation Trust Fund expenditures increase by
approximately $1.5 million and $172,800 respectively, in FY 2021. DLS can conduct the
required study with existing resources. The overall effect on general fund and special
revenues cannot be reliably quantified, as discussed below.
(in dollars) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
GF/SF Revenue (-) (-) (-) (-) (-)
GF Expenditure $1,486,600 $1,686,500 $1,725,000 $1,784,800 $1,846,800
SF Expenditure $172,800 - - - -
Net Effect ($1,659,400) ($1,686,500) ($1,725,000) ($1,784,800) ($1,846,800)
Note:() = decrease; GF = general funds; FF = federal funds; SF = special funds; - = indeterminate increase; (-) = indeterminate decrease
Local Effect: To the extent additional installment plans are authorized, local revenues
may be delayed. Expenditures are likely not materially affected.
Small Business Effect: None.
Analysis
Bill Summary/Current Law: A “judgment” is any final judgment resulting from a cause
of action for damages or on an agreement of settlement for damages arising out of the
ownership, maintenance, or use on any highway or other property open to the public of any
vehicle required to be registered in the State.
Nonpayment of Fines and Suspension of License
Under current law, if a person fined under the Maryland Vehicle Law (or under a federal
traffic law or regulation for a violation occurring in the State) does not pay a fine in
accordance with the court’s directive, the court may certify the failure to pay to MVA.
When MVA receives the certification, it may suspend the driving privileges or license of
the person until the fine has been paid (but only after giving the person 10 days advance
written notice). The bill repeals these provisions and instead specifies that, if a defendant
fails to pay the fine (or enter into an installment plan agreement), the court may (1) refer
the amount of the unpaid outstanding fine to CCU or (2) process the unpaid outstanding
fine as it would other outstanding fines owed to the court. The clerk of the court must
provide notice to the defendant of the disposition of the unpaid outstanding fine in the same
manner required for other outstanding fines processed in the same manner.
Installment Plan Agreements
Under current law, the District Court or a circuit court may authorize an individual
installment plan agreement for a defendant whose driver’s license or driving privilege may
be (or is) suspended for failure to pay a fine for one or more traffic offenses, including
one or more citations for a violation of specified parking ordinances. A defendant who is
sentenced to pay one or more fines that total at least $300 and certifies inability to pay the
fine (or fines) may apply to the clerk of the court to make installment payments.
The bill expands the current authorization to apply to any defendant who has failed to pay
a fine for one or more traffic offenses; further, it reduces, from $300 to $150, the amount
of fines required to enter into an installment plan. However, the defendant must still certify
inability to pay the fines. The bill clarifies that the District Court (or a circuit court) may
authorize an installment plan agreement for (1) the payment of one or more citations for a
specified payable violation issued pursuant to State law or (2) one or more fines imposed
at a hearing or trial by the court. In addition, the bill specifies that a defendant who agrees
to enter into an installment plan agreement consents to conviction at the time of the
agreement.
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Under current law, an installment plan agreement must, among other things, require that
the defendant make installment payments of 10% per month on the total amount of the fine
(or fines) covered by the agreement. The bill repeals the 10% threshold requirement and,
as a result, allows installment payments to be set at any portion of the fine (or fines) and to
be paid over any time period.
Additionally, under the bill, if a defendant fails to pay a fine in accordance with an
installment plan agreement, the clerk of the court may (1) refer the amount of the unpaid
outstanding fine to CCU or (2) process the unpaid outstanding fine as it would other
outstanding fines owed to the court. The clerk of the court must provide notice to the
defendant of the disposition of the unpaid outstanding fine in the same manner required for
other outstanding fines processed in the same manner.
Suspension of License and Registration upon Nonpayment of Judgment
Under current law, except as otherwise specified, MVA is required to suspend (1) the
license to drive of a judgment debtor and (2) the registration of all vehicles owned by the
judgment debtor upon receipt of a certified copy of a judgment and a certificate of facts.
The bill repeals this requirement.
In addition, the bill repeals two exceptions that prohibit MVA from suspending a license
or registration for (1) judgments related to accidents caused by specified governmental
vehicles and (2) judgments that an insurer was obligated to pay.
Under current law, a license or registration suspended under Title 17, Subtitle 2 of the
Transportation Article must remain suspended and may not be renewed or reissued (and a
new or original license or registration may not be issued) to the judgment debtor until the
judgment is (1) stayed; (2) satisfied; or (3) subject to a specified exception. The bill repeals
these provisions.
Installment Payment of Judgment
Under current law, on due notice to the judgment creditor, a judgment debtor may apply to
the court that rendered the judgment for the privilege of paying the judgment in
installments. In its discretion, the court may order payment of the judgment in installments
and may set (and modify from time to time) the amounts and times of the installment
payments. The bill specifies that a judgment debtor may continue to make payments under
an installment plan as long as the installment payments are not in default.
SB 234/ Page 3
Issuance and Contents of Traffic Citations
The bill modifies the required contents of a traffic citation. Each traffic citation must now
include a notice in boldface type that, if the citation is a payable violation, the person may
enter into an installment plan agreement pursuant to § 7-504.1 of the Courts and Judicial
Proceedings Article. (This requirement also applies to a citation marked “you have the right
to stand trial.”)
Compliance with Traffic Citations and Powers of the Court on Noncompliance
Under current law, if a person fails to comply with a notice in a traffic citation, the
District Court or a circuit court may (1) issue a warrant for the person’s arrest (except as
specified) or (2) after five days, notify MVA of the person’s noncompliance. The bill
clarifies that a person may comply with the notice to appear by entering into an installment
plan agreement.
Under the bill, and pursuant to current law, on receipt of a notice of noncompliance from
the District Court (or a circuit court), MVA must notify the person that the person’s driving
privileges must be suspended unless, within 15 days of the mailing date, the person (1) pays
the fine on the original charge or (2) requests a new date for a trial or a hearing on
sentencing and disposition (the bill repeals a requirement that the individual must post bond
or a penalty deposit). In addition, the bill authorizes a person to achieve compliance by
entering into an installment plan agreement (pursuant to § 7-504.1 of the Courts and
Judicial Proceedings Article, if applicable). Again, this must be done within 15 days of the
mailing date.
Under the bill, if the person subsequently fails to pay the fine, enter into an installment plan
agreement, or request a new date for a trial or hearing, MVA may then suspend the driving
privileges of the person.
On notice from the District Court (or a circuit court) that a person has paid the fine, entered
into an installment plan agreement, or requested a new date for a trial or hearing,
MVA must withdraw the suspension of the driver’s license or driving privileges of the
person. However, on notice from the court that a person who requested a new date for a
trial or a hearing failed to attend the new trial or hearing, MVA must suspend the driver’s
license or driving privileges of the person until the person complies, as specified.
DLS Reporting Requirement
The bill requires DLS to study the feasibility of (1) eliminating the minimum amount of
outstanding fines required to enter into an installment plan and (2) additional statutory
changes to ensure that debts accrued through the criminal justice system do not result in
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the loss of driving privileges. DLS must report its findings to the General Assembly by
December 31, 2020.
Background: Appendix – Traffic Fines presents various information on District Court
traffic fines, including deferments, installment plans, and revenues.
State Fiscal Effect: The bill is expected to have a significant operational and fiscal impact
on the Judiciary beginning in fiscal 2021 and a lesser one-time impact on MVA.
Judiciary
The Judiciary advises that an increase in installment plan requests is expected due to the
new notice required on traffic citations under the bill. Additionally, the lower fine threshold
($150 rather than $300) required to enter into an installment plan is likely to significantly
increase the number of individuals requesting an installment plan. These agreements are
handled manually.
As a result, the Judiciary advises that additional personnel are necessary (two clerks in each
district and two at the Traffic Processing Center). Accordingly, general fund expenditures
increase by $1.5 million in fiscal 2021, which reflects the cost to hire 26 clerks (along with
one-time reprogramming changes). This estimate includes salaries, fringe benefits,
one-time start-up costs, and ongoing operating expenses.
Positions 26
Salaries and Fringe Benefits $1,297,002
One-time Judicial Information Systems Reprogramming 50,120
Operating Expenses (including One-time Equipment) 139,523
Total FY 2021 General Fund Expenditures $1,486,645
Future year expenditures reflect full salaries with annual increases and employee turnover
and ongoing operating expenses.
Motor Vehicle Administration
MVA advises that about 166,100 suspended licenses are affected by the bill. Once the bill
takes effect, those licensees must be notified. MVA anticipates one-time costs totaling
$172,770 for this purpose (i.e., about $1.04 per notification) in fiscal 2021.
Reprogramming changes that are necessary as a result of the bill can be handled with
existing budgeted resources.
SB 234/ Page 5
Other Effects on State Revenues and Expenditures
The bill affects State expenditures and revenues in several other ways. Under current law,
traffic fines are generally credited to the general fund. Under the bill, however, outstanding
fines may be referred to CCU for collection. CCU recovers its operating expenses by
assessing and collecting a 17% fee in addition to and for the debts that it is assigned.
Therefore, to the extent special fund expenditures increase for CCU to send notices and
work to collect the additional debt, special fund revenues increase correspondingly as the
debt is collected; however, the magnitude of any such impact cannot be reliably estimated
at this time. Furthermore, any special fund balance for CCU in excess of 15% of the unit’s
actual operating expenses reverts to the general fund. Therefore, general fund revenues
may increase as additional debt is collected; however, the magnitude of any such impact
cannot be reliably estimated at this time.
To the extent that the bill results in longer installment plan periods, revenues may be
delayed relative to current law.
Finally, multiple special funds receive disbursements from traffic fines and court costs.
Revenues for those funds decrease under the bill (with a likely commensurate decrease in
expenditures). That impact also cannot be quantified.
Local Revenues: The number of additional installment plan agreements that may be
entered into under the bill is not known. However, if a significant influx of requests occurs
as a result of the bill, local revenues may be delayed (especially given the longer payment
periods and lower payment plan threshold authorized by the bill). Local revenues may also
be foregone entirely if the removal of existing enforcement mechanisms incentivizes
nonpayment of fines.
Additional Information
Prior Introductions: None.
Designated Cross File: HB 280 (The Speaker, et al.) (By Request - Office of the Attorney
General) - Judiciary.
Information Source(s): Office of the Attorney General; Judiciary (Administrative Office
of the Courts); Department of State Police; Maryland Department of Transportation;
Department of Legislative Services
SB 234/ Page 6
Fiscal Note History: First Reader - February 3, 2020
rh/ljm Third Reader - April 9, 2020
Revised - Amendment(s) - April 9, 2020
Revised - Updated Information - April 9, 2020
Analysis by: Eric F. Pierce Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 234/ Page 7
 Appendix – Traffic Fines
Exhibit 1
District Court Traffic Citations
Deferred Payments Granted at the Time of Trial, by County
Fiscal 2019
Allegany 347
Anne Arundel 2,532
Baltimore City 2,407
Baltimore 436
Calvert 870
Caroline 530
Carroll 760
Cecil 1,289
Charles 897
Dorchester 750
Frederick 901
Garrett 94
Harford 867
Howard 1,059
Kent 139
Montgomery 2,809
Prince George’s 1,729
Queen Anne’s 204
Somerset 802
St. Mary’s 762
Talbot 538
Washington 323
Wicomico 1,214
Worcester 1,318
Total Deferments 23,577
Source: Judiciary (Administrative Office of the Courts); Department of Legislative Services
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 Exhibit 2
District Court Traffic Citations Installment Payment Plan Data
October 1, 2018 to December 31, 2019
Number Number
Month of Plans in Default Default Rate
October 2018 93 24 26%
November 20