1997-27
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Cite as N.Y. Op. Att'y Gen. No. 1997-27
VEHICLE AND TRAFFIC LAW §§ 401, 410, 415; 15 NYCRR § 78.21(b).
Vehicle and Traffic Law § 415 does not authorize the use of
dealer number plates on vehicles used to transport customers or
pick up supplies, as such use does not constitute the “sale or
demonstration” of the vehicle or fall within other permitted uses
under the statute.
June 13, 1997
Thomas R. Emnett, Esq.
Informal Opinion
County Attorney
No. 97-27
County of Tioga
County Office Bldg.
156 Main Street
Owego, NY 13827
Dear Mr. Emnett:
You ask whether a motor vehicle dealer violates Vehicle and
Traffic Law § 415 when staff members drive dealership vehicles
equipped with dealer number plates to transport customers from
the dealership to other locations or to pick up parts from local
stores. You indicate that some dealers in your county believe
they are justified in using dealer plates in such a manner
because the dealer-plated vehicles are held for sale or
demonstration.
Section 415 of the Vehicle and Traffic Law provides for
dealer registration and states that “[a] dealer or other person
qualifying for limited use of motor vehicles” may receive one or
more sets of dealer and transporter number plates. Vehicle and
Traffic Law § 415(4). The statute also permits registered
dealers to operate vehicles to the extent provided in section
415(8) with dealer plates instead of obtaining individual vehicle
registration as required in sections 401 and 410. Id. Dealer
number plates may be used for all of the purposes for which
transporter plates may be used. Id., § 415(8). These include
the
purpose of weighing, testing, dismantling,
transporting or delivering the same, or for
the purpose of moving such vehicles in
connection with making installations thereon
or improvements thereto, or the repossession
or foreclosure thereof, or for the operation,
for demonstration purposes, of any vehicle
owned by a manufacturer, or for transporting
or delivering the vehicle upon which the
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plates are displayed and additional vehicles
carried in whole or in part upon such
vehicle. Id.
The statute also provides that dealer number plates
may be used for the operation of any vehicle
owned or controlled by the registrant and
held for sale or demonstration, except a
vehicle rented to another, a vehicle used to
transport passengers for hire, a vehicle
commonly called a “tow truck” or “wrecker”
and used by the dealer for such purposes, a
vehicle equipped for the purpose of towing or
pushing disabled or nonoperated vehicles or a
commercial or suburban type vehicle used by
the dealer for commercial purposes other than
directly affecting the sale or demonstration
of that particular vehicle. Id.
The Commissioner of Motor Vehicles is authorized to suspend
or revoke or refuse to issue or renew the dealer registration of
any dealer who uses or permits use of dealer plates contrary to
law. Id., § 415(9)(b). The Commissioner also can suspend or
revoke the dealer number plates if they are used contrary to law
and may impose fines for violations. Id., § 415(10), (12).
In our view, the phrase “held for sale or demonstration” in
section 415(8) is consistent with section 415(4), which
authorizes issuance of dealer plates for “limited use”. The
Legislature obviously intended to regulate carefully the use of
dealer plates so they would not inappropriately be substituted
for individual registration of vehicles, which permits unlimited
use. This intent is evident from the statutory scheme, including
the enforcement provisions.
The Legislature’s decision to list a number of express
exceptions in the statute, which bar certain dealer vehicles from
eligibility for dealer plates, arguably could be read to
authorize all uses not listed. In our view, such a reading would
be inconsistent with the legislative intent to issue dealer
plates for limited use. We believe the statutory language should
be construed as providing examples of prohibited uses.
There is no authority in the statute to use dealer number
plates on vehicles engaged in running errands or performing the
routine activities associated with a dealership’s operation, and
holding out such a vehicle as being available for sale or
demonstration does not under the statute validate an otherwise
inappropriate use of dealer number plates. People v Christensen
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& Weiss, 250 App Div 470 (2d Dept 1937). In Christensen, the
court read this statute’s precursor, which similarly authorized
use of dealer plates on vehicles “held for sale or demonstration”
except those used primarily for towing or transporting property,
for rental to another, or to transport passengers for hire, as
prohibiting the use of such plates for any activity not directly
related to the sale or demonstration of a vehicle.
Regulations promulgated by the Commissioner are consistent
with this view. They state that “it is unlawful, among other
things, to use dealer plates on vehicles owned by members of the
dealer's family or employees, and on service cars”. 15 NYCRR
§ 78.21(b). While “service cars” is not defined, it seems
reasonable that it includes cars used by service departments to
get parts and transport customers to their jobs or homes. The
Department of Motor Vehicles has confirmed that this is the
intended meaning.
If section 415 were to be construed as allowing a dealer,
under the guise of holding a vehicle for sale or demonstration,
to use that vehicle for services like transporting customers or
picking up materials, dealer number plates could then be used for
any conceivable purpose and for any length of time. This would
not be consistent with the legislative intent to authorize the
issuance of dealer plates for limited use in place of individual
registration, which permits unlimited use of the registered
vehicle.
We conclude that section 415 does not authorize the use of
dealer number plates on vehicles used to transport customers or
pick up supplies, as such use does not constitute the “sale or
demonstration” of the vehicle as contemplated by Vehicle and
Traffic Law § 415.
The Attorney General renders formal opinions only to
officers and departments of State government. This perforce is
an informal and unofficial expression of the views of this
office.
Very truly yours,
SIOBHAN S. CRARY
Assistant Attorney General