Have experienced this as my partner is from the greater NYC area. Cops will hand out these cards (or sometimes it is a little badge that you pin to your wallet or a larger badge that you stick in your rear window so they don't pull you over in the first place). It doesn't have to be a family member - I knew people who had them because their neighbor was a cop.

It's all part of a "I've got mine" culture that is comfortable with different sets of rules for different kinds of people. And it certainly fosters corruption, favors and deals done outside the normal channels.

This practice and anything like it should absolutely be outlawed and rooted out.