(a) On and after October 1, 1978, the Director of Motor Vehicles shall require that each automobile for hire presented to him for inspection and registration be accompanied by a separate taxicab medallion registered to the automobile owner and obtained under subchapter II, chapter 37 of this title. Notwithstanding any other provision of law, on and after October 1, 1978, the Director of Motor Vehicles shall inspect and register automobiles for hire and collect the fees therefor, except that the Director shall not issue license plates for automobiles for hire. In cooperation with the Taxicab Commission, the Director shall device, by rules and regulations, a means for affixing on the registration form at the time of issuance of the license plates, the number of the license plates issued by the Taxicab Commission to an owner of an automobile for hire.
(b) On or before October 1, 1978, and in each subsequent year, the Director shall provide the Taxicab Commission with such license plates as it may require to be issued for automobiles for hire. Each plate shall be marked according to existing law and shall designate the island for which it is issued and shall be valid only on the island designated.
(c) On and after October 1, 1978, the Taxicab Commission shall issue to the owner of a valid taxicab medallion who presents proof that an automobile for hire owned by him has been inspected and registered with the Director of Motor Vehicles, a set of license plates for each such automobile; provided, however, that only one set of plates may be issued for each separate medallion. The Taxicab Commission shall forthwith notify the Director of Motor Vehicles the number on the plates issued each automobile and shall record such number in the register of medallions required by subchapter II of chapter 37 of this title. Only persons owning taxicab medallions on and after October 1, 1978, may obtain license plates for automobiles for hire.
(d) Any owner of a validly registered and licensed automobile for hire who chooses to no longer use such vehicle as an automobile for hire shall immediately notify the Taxicab Commission of his intention and return to the Taxicab Commission the license plates from such automobile. The Taxicab Commission shall reserve such plates for that owner's replacement vehicle provided that owner is still the owner of the taxicab medallion for which the plates were originally issued. The Taxicab Commission shall notify the Director of any such disuse of plates and any subsequent reissue.
(e) Any person who operates a motor vehicle as an automobile for hire without the appropriate registration license and license plates shall be fined in an amount not exceeding $50 for each offense.