Ontario's Liberal government plans to introduce legislation to give municipalities new tools to collect about $350 million in outstanding fines that have accumulated over seven years.

The new legislation will expand licence plate denial to Ontario residents to include speeding, improper lane changes, illegal turns, driving with no insurance and careless driving.

Transportation Minister Glen Murray says there's potentially up to $100 million a year in revenue for Ontario municipalities if fines are actually collected.

If passed, the legislation would also allow municipalities to mail highway tickets to out-of-province drivers who haven't paid their fines.

It will also allow municipalities to issue red light camera tickets to out-of-province vehicle owners.

Murray says every one per cent increase in fine collection amounts to about $2.5 million in revenue.