The director is hereby authorized to design and to issue, under such rules as the director deems appropriate, vanity number plates to be used on motor vehicles in lieu of other number plates. Such number plates shall be of such design and shall bear such letters or letters and numbers as the director shall prescribe, but there shall be no duplication of identification. Such number plates or a changeable designation of the effective period thereof, as the director shall determine, shall be issued only upon application therefor and upon payment of a special vanity plate service fee of $40, said special fee to be in addition to the regular motor vehicle registration fee and any other number plate manufacturing fee otherwise required by law for the particular vehicle. Plates shall be renewed on an annual basis for $40 per set. All special fees collected under this section shall be paid to the state treasurer and distributed as provided by N.H. Rev. Stat. § 263:52. Upon rejection of an application for vanity number plates, the director shall refund or credit the collected special vanity plate service fee. The director shall recall any vanity number plates that have been issued which do not conform to applicable law and rules, regardless of when the plates were issued. Any person whose application for vanity number plates has been rejected or whose vanity number plates have been recalled shall be issued a number plate of the same classification as the plate that had been requested or recalled. The prorated by month portion of the special vanity plate service fee shall be refunded or credited to the person whose vanity number plates have been recalled.