October 1 thereafter, the Secretary shall withhold 2.5 percent of the amount required to be apportioned to a State under each of paragraphs (1) and (2) of section 104(b) for that fiscal year if the State is not in compliance with subsection (c) on that date. (3) Effect of withholding of funds No funds withheld under this section from an apportionment to a State shall be available to that State. (c) Requirements A State shall be in compliance with this subsection if the State has in effect the following laws with respect to transportation network companies operating in that State: (1) Front and rear license plates A law requiring that each TNC vehicle display a State-issued license plate on both the front and rear of the vehicle. (2) Inspection and signage requirements A law requiring TNC drivers to present TNC vehicles for inspection by not later than 180 days after the date of enactment of that law, or, in the case of a State that already has in effect a law that meets the requirements of this paragraph, not later than 180 days after the date of enactment of this section, and annually thereafter, including each of the following: (A) A provision requiring each TNC driver to affix a sticker with a machine-readable code or image, provided to that driver pursuant to section 4(b)(2) of Sami’s Law , on each window of the vehicle of the TNC driver adjacent to where passengers may sit. (B) A provision that prohibits a TNC driver from providing TNC services if the TNC vehicle does not pass the inspection. (C) A provision that requires periodic safety inspections of the TNC vehicle performed at intervals of not less frequently than once each year. (D) A provision that requires, at all times when the TNC driver is active on the TNC platform or providing any TNC service, each TNC vehicle to display a consistent and distinctive signage or emblem that— (i) is recognized as a trade dress for the transportation network company