You need to add a pull-up resistor between Pin 8 of the 7217 IC and +5V for the transistor output of the sensor to work correctly. A value of 1K ohms would normally be used, but this is incompatible with your blue LED D5 which needs current to flow when Pin 8 is high and this current would drop voltage across the pullup resistor. To make the LED work it might be easiest to put the LED and its series resistor from pin 8 up to 5V so that the LED turns ON when pin 8 is low. In this way, the LED and resistor provides the pullup function. It may be necessary to put a large value resistor across the LED, like 22K ohms.
I can infer the connections from the driver IC to the display, but I think this should be shown more explicitly on the schematic.
C4, the 47uF capacitor, is sufficient bypassing along with C3, so I think C1 is not needed. C4 can be an electrolytic type. This assumes these parts are all located on the same board.
You need to decide on the Store function, pin 9. It seems that you may need to ground that input, but check the data sheet.
Pin 10 must be wired to gnd or 5V, it cannot be left floating.
You probably need to put a reset circuit on pin 14 of the IC, or else the counter will power-up to an unknown value. The most common and simple type is to wire a larger value capacitor from the Reset pin to gnd and a resistor from the Reset pin to 5V. The values for resistor and capacitor are chosen so that the capacitor takes much more than 10mSec to charge up to 2.5V. Alternatively, you could use a reset IC.
D3 would be less confusing if you used the symbol for a lamp instead of an LED.
Post again after making corrections.