They do that in MN after the 1st offense, I think. The plates are the same as regular plates, but the first 2 characters of the plate are "WV", and are called "whiskey plates" in the local vernacular.
I don't think it's such a bad idea. And if someone gets 3+ DUIs, I don't see the big deal of making them announce it to everyone with a nice, shiny plate if they want to continue to drive.
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