Getting a DUI? New Rules Mean Immediate Interlocks and New Costs for Tech Makers
Sponsors: Amy Paschal, Jamie Jackson, Dylan Roberts·Transportation, Housing & Local Government·

Illustration: Assembly Required
The Bottom Line
If you get a DUI in Colorado, this bill eliminates the mandatory waiting period to get an ignition interlock device, meaning you can legally drive to work much sooner. However, it also makes those devices absolutely mandatory for first-time offenders to get their full license back, and forces the private companies making the tech to heavily discount their services for low-income drivers. It's a major shift in how the state balances road safety with getting people back to work.
What This Bill Actually Does
Currently, if you get a DUI, DWAI, or refuse a chemical breath test in Colorado, you have to sit through a hard waiting period—like two months for a refusal—before you can even apply to get a restricted license that lets you drive with an ignition interlock device. HB26-1242 strips out that waiting period entirely. If you lose your license, you can apply for an early reinstatement with an interlock device right away.
But the state isn't just handing out favors; there's a significant catch. Under current law, some people simply wait out their suspension period without driving, then get their regular license back without ever installing a device. This bill closes that loophole. It mandates that first-time offenders must hold an interlock-restricted license for up to nine months (or until they complete a specific, strict removal process) before they can ever get an unrestricted license back. You can no longer just wait out the clock.
Finally, the bill completely overhauls how we pay for this tech. Interlock devices are expensive, which historically keeps lower-income drivers from getting back on the road legally. To fix this, the bill creates a strict financial assistance program for drivers who make less than 150% of the Federal Poverty Level or are enrolled in federal public assistance. But here is the major twist: the state isn't footing the bill. Instead, the legislation forces certified ignition interlock manufacturers to provide qualifying drivers with free standard installation, free removal, and up to a 50% discount on the monthly lease rate. The only exception to the free installation rule? If the state determines the driver owns a "high-end or electric vehicle," the manufacturer only has to cover 50% of the installation fee.
What It Means for You
Nobody plans on getting a DUI, but if it happens to you, a family member, or a friend, this legislation radically changes the immediate aftermath. Under current law, sitting out a license suspension without driving at all might have been a viable—if incredibly inconvenient—option. Under HB26-1242, if you want your regular, unrestricted driver's license back, you must participate in the interlock program. The state is essentially saying that proving you can drive sober with a machine is the only acceptable path back to normal driving privileges. You'll have to blow into that device every time you start your car for up to nine months, no matter how long your original revocation period was.
The silver lining for cash-strapped drivers is the new affordability mandate. If you make less than 150% of the poverty line (roughly $22,500 for a single person today), you won't be blocked from getting to work just because you can't afford the hefty installation fees and monthly lease costs. But be warned: the mandated discounts do not apply to penalty fees. If you lock out the device, miss an administrative appointment, or violate the program rules, you will be charged the full rate for those specific service fees. Furthermore, if you fail to remain compliant with the program, you forfeit your affordability status entirely.
Here is what you should do to stay ahead of this:
- Mark your calendar: If passed, these new rules won't take effect immediately. They apply to license revocations happening on or after June 1, 2027.
- Talk to your teens and young adults: If you're a parent, this is a great practical example of how much more complicated (and expensive) a DUI is about to get in Colorado.
- Make your voice heard: If you have strong feelings about mandatory interlocks or the elimination of waiting periods, contact your local representative or the members of the House Transportation, Housing & Local Government Committee before they vote.
What It Means for Your Business
If you operate an auto shop that installs interlock devices, or if you represent a certified interlock manufacturer, this bill is a direct hit to your pricing and operational model. The state is legally mandating that you provide free installations, free removals, and half-price leases to a specific subset of low-income offenders. You are essentially being drafted to subsidize the state's criminal justice rehabilitation efforts. You will also have strict new compliance burdens: you must provide written notice about this assistance program to every single customer at the time they schedule an appointment and when they sign a lease.
The one caveat for installers? You only have to eat 50% of the installation cost (rather than 100%) if the car is a "high-end or electric vehicle." This is going to require some very clear definitions from the Department of Revenue on what exactly qualifies as "high-end," so you'll need to watch the administrative rulemaking process closely. You are allowed to request updated financial info from participants every six months to verify they still qualify, so you'll need to build out an administrative process to handle that semi-annual income verification.
For general employers, however, this bill is actually great news. If you manage a workforce—especially in logistics, construction, retail, or the trades—employees who catch a DUI over the weekend won't have to navigate a complex, months-long waiting period before they can legally drive again. Because they can apply for an interlock-restricted license immediately, they can get back to work faster. Here is what you should do this week:
- Interlock installers, prep your POS: Start drafting the mandatory consumer notices you'll need to hand out when appointments are scheduled and leases are signed.
- Review your HR policies: Update your employee handbook regarding DUIs and company vehicles, noting that interlocks will now be strictly mandatory for personal license reinstatement.
- Reach out to industry groups: If you are an interlock provider, coordinate with your trade association to ensure you have a voice at the upcoming committee hearings.
Follow the Money
The official legislative fiscal note detailing the exact dollar amounts hasn't been published yet, but we can read the financial tea leaves right in the bill text. The state will fund its side of the administrative assistance program through the First Time Drunk Driving Offender Account within the Highway Users Tax Fund. The Department of Revenue will have to spend money updating their systems, posting new eligibility rules online, and managing the application process.
However, the true financial cost of this bill is quietly passed onto private businesses. By forcing interlock manufacturers to provide free standard installations, free removals, and up to 50% off monthly lease discounts, the state is shifting a massive financial burden off of its own ledgers and onto the private sector. Expect manufacturers to lobby hard on this point. It is highly likely that these companies will eventually raise their standard rates for non-indigent drivers to subsidize the mandatory discounts they are forced to give low-income drivers.
Where This Bill Stands
HB26-1242 was officially introduced in the House on February 18, 2026, and assigned to the House Transportation, Housing & Local Government Committee.
Because this bill touches on DUIs, road safety, and shifts heavy costs to private companies, expect a very lively committee hearing. Interlock manufacturers will likely show up in force to testify against the financial mandates, while criminal justice reform advocates and workforce groups will likely support the immediate driving privileges and low-income assistance. If it passes all legislative hurdles, the new rules won't take effect until June 1, 2027, giving the Department of Revenue a full year to write the specific rules and definitions required to make this work.
The Opportunity Signal
Where this bill creates practical upside for operators: the opening, the key constraints, and the move to make while the window is still favorable.
Interlock Provider Business Model Adjustment
Certified ignition interlock manufacturers and their installers in Colorado face a significant mandated shift: as of June 1, 2027, they must provide free installations, free removals, and up to 50% off monthly lease rates for low-income drivers. This immediate and substantial cost absorption requires these businesses to proactively re-evaluate their entire pricing structure for non-subsidized customers, optimize operational efficiencies, and build robust administrative processes for semi-annual income verification and mandatory customer disclosures. Failure to adapt a new business and pricing model risks substantial margin erosion and regulatory penalties, creating an urgent need for strategic planning.
- Mandatory financial assistance for drivers below 150% of the Federal Poverty Level, effective June 1, 2027.
- Requires new internal processes for income verification, program compliance, and mandatory customer notifications at appointment scheduling and lease signing.
- Manufacturers can adjust standard rates for non-indigent customers to offset mandated subsidies, but must do so strategically.
- Department of Revenue must define 'high-end or electric vehicle' for the 50% installation cost exception.
Next move: By April 1, 2026, interlock manufacturers should engage financial analysts and legal counsel to model new pricing tiers, draft compliance protocols for income verification, and prepare mandatory customer disclosures for internal review.
Workforce Continuity Planning for Employers
Colorado employers, particularly those with a mobile workforce in sectors like logistics, construction, or field services, can benefit from this bill. The elimination of the mandatory waiting period for an interlock-restricted license means employees convicted of a DUI can legally drive and return to work much faster, significantly reducing the duration of workforce disruptions. This presents an opportunity to update human resources policies to leverage quicker employee reintegration, minimize productivity loss, and potentially improve employee retention through clear communication about the revised paths back to driving privileges.
- Employees can obtain interlock-restricted licenses immediately upon license revocation, no longer facing a mandatory waiting period, effective June 1, 2027.
- Mandatory interlock use for first-time offenders replaces the option to simply wait out a suspension without driving, ensuring a consistent path back to driving privileges.
- This change helps reduce the duration of employee driving suspensions, enhancing workforce stability and reducing recruitment costs.
- Employers can benefit from more predictable employee availability post-DUI incidents.
Next move: By July 1, 2026, HR departments should review and update employee handbooks and internal policies regarding DUIs, emphasizing the immediate interlock option and mandatory participation for license reinstatement, and communicate these changes to management and employees.
Interlock Program Administration & Software Solutions
The new financial assistance program for interlock devices creates a complex administrative burden for certified manufacturers, requiring semi-annual income verification, strict notification protocols, and detailed tracking of subsidized services. This presents a strong B2B opportunity for technology developers or specialized administrative service providers to offer solutions that streamline these compliance requirements. Automated income verification tools, CRM integrations for tracking customer eligibility, standardized notification templates, and robust reporting functionalities will be in high demand to help interlock companies navigate these new operational mandates efficiently and compliantly.
- Interlock providers must verify driver income against 150% Federal Poverty Level every six months to maintain eligibility for discounts.
- Mandatory written notices about the assistance program must be provided to every customer at appointment scheduling and lease signing.
- Compliance requires robust data management for tracking subsidized services and program adherence, including managing penalty fees.
- The need for clear definitions regarding 'high-end or electric vehicle' for partial installation coverage will require system flexibility.
Next move: By September 1, 2026, technology developers or Business Process Outsourcing (BPO) firms should conduct detailed market research with Colorado-certified interlock manufacturers to identify specific compliance pain points and begin scoping a software solution or service offering.
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