Authorizes the commissioner of motor vehicles to establish gift cards for distinctive and special number license plates

Title of bill

An act to amend the vehicle and traffic law, in relation to authorizing the commissioner of motor vehicles to establish gift cards for distinctive and special number license plates

Purpose or general idea of bill

The purpose of this legislation is to authorize the Commissioner of Motor Vehicle to establish gift cards for distinctive and vanity license plates.

Summary of specific provisions

Section 1. Section 404-00 of the Vehicle and Traffic Law is amended to read as follows:

§ 404-00. Deposit of service charges for distinctive license plates; issuance of gift cards. The old language has become '1.' and the new language is '2.' and reads as follows: The commissioner shall promulgate rules and regulations establishing gift cards for distinctive and special number license plates. Such gift cards shall be redeemable upon presentation to the commissioner with an application for the issuance or renewal of distinctive and/or special number license plates established pursuant to this article. No fee shall be charged for the issuance of such gift cards, nor shall any fees, including but not limited to services fees and dormancy or inactivity fees, be imposed upon such gift cards. For the purposes of this subdivision, the following terms shall have the following meanings: 'dormancy or inactivity fee' means a fee for non-use or, or inactivity on, a gift card; 'gift card' means a card, code or other device issued to a person on a prepaid basis in a specified amount in exchange for payment, and which is redeemable upon presentation to the commissioner with an application for the issuance or renewal of distinctive and/or special number license plates, and 'service fee' means a periodic fee for holding or using a gift card.

Section 2. Establishes the effective date.

Justification

This bill requires the Commissioner of Motor Vehicle promulgate rules and regulations so that gift cards may be sold in the State for custom and vanity license plates. Similar gift cards are already allowed in the State for camping permits, and Empire Passports which are used for entrance into New York State parks. Gift cards for camping permits may be used for anything from golf reservations and greens fees to the purchase of firewood or boat rentals, in addition to reserving camping sites. Gift cards for camping as well as the Empire Passports are even advertised for sale on the website for the New York State Office of Parks, Recreation and Historic Preservation.

Thus, there is a precedent set within the State to allow for the sale of gift cards. Vanity and custom plates are popular, so it is anticipated that gift cards will be purchased as soon as they are advertised. Allowing for the purchase of gift cards for such plates encourages the sale of these plates, thereby increasing revenue to the State.

Prior legislative history

None

Fiscal implications

It is anticipated that this State will collect additional revenue due to the enactment of this legislation.

Effective date

This act shall take effect one year after it shall have become a law.