] is old law to be omitted. LBD03301-01-5A. 899 2 1 an applicant without verification that such applicant owns a registered 2 motor vehicle pursuant to section four hundred one of this article. 3 2. A distinctive plate issued pursuant to this section shall be issued 4 in the same manner as such other number plates upon the payment of the 5 regular registration fee prescribed by section four hundred one of this 6 article, provided, however, that an additional annual service charge of 7 twenty dollars shall be charged for such plate. Such annual service 8 charge shall be deposited pursuant to the provisions of section four 9 hundred four-oo of this article to the credit of the department of motor 10 vehicles distinctive plate development fund established by section nine- 11 ty-five-g of the state finance law and shall be used for the production, 12 design, advertising and marketing of distinctive license plates pursuant 13 to such section ninety-five-g provided, however, that annual service 14 charges collected in excess of twenty-five hundred dollars shall be paid 15 by the state comptroller to the northern New York community foundation 16 for their scholarship program. 17 § 2. 1. A distinctive plate established pursuant to section 404-ff of 18 the vehicle and traffic law shall only be designed, produced and issued 19 upon the delivery to the department of motor vehicles of a surety bond 20 in the amount of six thousand dollars, which shall be executed by a 21 surety company authorized by the department of financial services to 22 transact business in this state. Provided, however, that if the commis- 23 sioner of motor vehicles shall have received prior to plate design, 24 production and issuance at least two hundred orders for such distinctive 25 plate together with the additional annual service charge applicable to 26 each such order, which shall be non-refundable, no such surety bond 27 shall be required. All service charges collected pursuant to this 28 section shall be deposited pursuant to the provisions of section 404-oo 29 of the vehicle and traffic law to the credit of the department of motor 30 vehicles distinctive plate development fund established by section 95-g 31 of the state finance law and shall be used for the design, production, 32 advertising and distribution of distinctive license plates in accordance 33 with such section 95-g. 34 2. If, upon the expiration of two years following the date upon which 35 distinctive plates in the series are first available for sale two 36 hundred or more sets of such plates are sold, a bond delivered pursuant 37 to this section shall be discontinued. If fewer than two hundred sets of 38 such plates are sold by such time, the department of motor vehicles 39 shall be entitled to recover against the bond in an amount proportionate 40 to such shortfall. 41 § 3. This act shall take effect immediately; provided, however, that 42 section one of this act shall take effect on the one hundred eightieth 43 day after it shall have become a law. Effective immediately, the addi- 44 tion, amendment and/or repeal of any rule or regulation necessary for 45 the implementation of this act on its effective date are authorized to 46 be made and completed on or before such effective date.