Authorizes county clerks to retain a portion of fees collected for motor vehicle related services through a department of motor vehicles' website

Section 2 is the effective date.

Existing law

Article 2 of the Vehicle and Traffic Law (VTL) governs the Department of Motor Vehicles and the obligations of the Department's Commissioner. Section 205 of the VTL designates county clerks as agents of the commissioner and includes provisions of law relating to their authority, responsibilities, and fees.

Subsection 1 of § 205 of the VTL provide, each county clerk, except the counties of Rockland, Albany, Westchester, Suffolk, Nassau, Onondaga, Bronx, Kings, Queens, Richmond, and New York, shall act as the agent of the commissioner in the registration of motor vehicles, motorcycles, and when directed by the commissioner, snowmobiles, vessels and all terrain vehicles, and in the issuance of certificates thereof and number plates therefor, in receiving documents relating to certificates of titles, and unless and until the commissioner shall otherwise direct in any county, in the issuance of non-driver identification cards and drivers' license upon the certification of inspectors, and motor vehicle enforcement transactions. Each such agent all remit to the commissioner all fees collected by him for registrations, licenses, identification cards and transfers or relating to certificates of titles, except as hereinafter provided, together with a compete record of such registrations, identifications cards and licenses issues and transfers made, in accordance with the procedure prescribed by the commissioner, and with all documents relating to certificates of titles received and such record thereof as the commissioner prescribes.

Subsection 3 of § 205 of the VTL provides, each county clerk, except the counties of Rockland, Albany, Westchester, Suffolk, Nassau, Onondaga, Bronx, Kings, Queens, Richmond, and New York, shall retain from fees collected for any motor vehicle related service described in subsection one of this section processed by such county clerk an amount based on a percentage of gross receipts collected. The term gross receipts shall include all fines, fees and penalties collect pursuant to this chapter by a county clerk acting as agent of the commissioner, but shall not include any state or local sales or compensating use taxes imposed under or pursuant to the authority of Articles 28 and 29 of the Tax Law and collected by such clerk on behalf of the commissioner of Taxation and Finance. The retention percentage shall be 12.7%.

Subsection 3-a of 3 of § 205 of the VTL relates to the fees retained by the county collected by the commissioner through "enhanced internet and electronic partner revenue." Enhanced internet and electronic partner revenue shall mean the amount of gross receipts of each county and by designated partners of the department of behalf of the residents for the current calendar year that exceed the amount of such revenue collected by the commissioner during the 2011 calendar year. The commissioner shall certify the amounts to be retained by each county clerk pursuant to this subdivision.

Justification

The increasing use of the DMV website by residents to renew registrations and complete other services has decreased the amount of fees paid directly at local DMV offices in counties throughout the state. Nonetheless, counties still must support these offices financially. In order to eliminate this increasingly unfunded mandate, counties should receive the same 12.7% of gross receipts of services rendered at the DMV website as they would if residents were using the local DMV office, rather than a percentage determined by the Commissioner.

This bill directs DMV to remit the 12.7% of processing fees to respective counties from transactions through the DMV website, according to the county of residence of the applicant or registrant.

Legislative history

2015: Rules Committee

Fiscal implications

To be determined.

Effective date

This act shall take effect April 1, 2017; provided, however, that effective immediately, the addition, amendment and/or repeal of any rule or regulation necessary for the implementation of this act on its effective date are authorized and directed to be made and completed on or before such effective date.