Los Angeles Superior Court Judge James A. Steele issued his ruling after reviewing statutes cited by prosecutors and Spears' attorney, J. Michael Flanagan.
The ruling means the singer may go on trial in October.
Steele's ruling disagreed, saying prosecutors properly charged Spears.
The case is the last remnants of a criminal case city prosecutors lodged against Spears after she hit a parked car in August 2007 and left without notifying the owner. She was originally cited for hit-and-run and driving without a license, but the hit-and-run charge was dropped.
Flanagan said Tuesday that Spears had a valid Louisiana driver's license when she was involved in an accident last year. He says she got a California license within six days of being notified of the infraction.
Steele, however, stated in his ruling that documents in other legal cases involving Spears indicate she was a California resident for 17 months before the offense. A person has 10 days after establishing residency in California to get a license, Steele's ruling states.
Flanagan did not immediately return a call seeking comment Wednesday afternoon. He said after Tuesday's hearing that he would appeal if Steele did not dismiss the case.
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