Quick bump, here's the language straight from NYS DMV regarding "Not Ready" status:
The US Environmental Protection Agency (EPA) guidelines allow up to two monitors to be in a "not ready" state for model year 1996 through 2000 vehicles and one monitor "not ready" for 2001 or newer model year vehicles.
http://dmv.ny.gov/brochure/what-do-y...cars-not-ready