Whenever the Taxicab Commission is required to sell a medallion by auction, and in selling all medallions newly issued on or after January 1, 1979, the Taxicab Commission shall cause to be advertised on the island for which a medallion is issued, timely notice of the sale by auction. The notice shall contain information that only approved buyers may purchase medallions and the procedure by which a person may become an approved buyer. Medallions sold at auction shall be sold to the highest bidder. If the highest bidder is not an approved buyer of record at the time of the auction, the sale shall be honored if the Taxicab Commission finds that the highest bidder subsequently qualifies as an approved buyer. No person who has been denied status as an approved buyer may bid at an auction conducted under this section until such time as he is determined to be an approved buyer.