(a) (1) A school type vehicle operated on a regular daily basis to transport students attending grades K through 12 shall be registered under this section.

(2) A school type vehicle otherwise operated to transport persons for educational purposes or maintained by an educational institution as part of a transportation system shall be registered, at the option of the registrant:

(i) Under this section; or

(ii) Under any other appropriate section of this title.

(3) The Administration may establish guidelines for the registration of school type vehicles in accordance with this section.

(b) If it is only operated for the transportation of children, students, or teachers for educational purposes or in connection with a school activity or if it is operated, with approval from a board of education in any county, to provide transportation for persons 60 years old or older to civic, educational, social, or recreational activities, a Type I school vehicle (school bus) shall:

(1) Display distinctive “school bus” registration plates issued by the Administration; and

(2) Comply with all the requirements of the Maryland Vehicle Law and the regulations of the Administration that relate to a Type I school vehicle.

(c) (1) If it is operated for any purpose in addition to those specified in subsection (b) of this section, a Type I school vehicle (school bus) shall display distinctive “school charter” registration plates issued by the Administration.

(2) The Administration shall issue “school charter” plates:

(i) In place of and not in addition to “school bus” plates; and

(ii) Only to vehicles complying with all the requirements of the Maryland Vehicle Law and the regulations of the Administration that relate to a Type I school vehicle.

(d) A Type II school vehicle shall:

(1) Display distinctive registration plates issued by the Administration; and

(2) Comply with all the requirements of the Maryland Vehicle Law and the regulations of the Administration that relate to a Type II school vehicle.