(a) The commissioner, through a competitive process, may contract with advertisers regarding advertising on school buses. At a minimum, the contract must prohibit advertising and advertising images that:

• (1) solicit the sale of, or promote the use of, alcoholic beverages and tobacco products;
• (2) are discriminatory in nature or content;
• (3) imply or declare an endorsement of the product or service by the school district;
• (4) contain obscene material;
• (5) are false, misleading, or deceptive; or
• (6) relate to an illegal activity or antisocial behavior. (b) Advertisement must meet the following conditions:
• (1) the advertising attached to the school bus does not interfere with bus identification under section 169.441; and
• (2) the bus with attached advertising meets the school bus equipment Standard under sections 169.4501 to 169.4504. (c) All buses operated by school districts may be attached with advertisements under the state contract. All school district contracts shall include a provision for advertisement. Each school district shall be reimbursed by the advertiser for all costs incurred by the district and its contractors for supporting the advertising program, including, but not limited to, retrofitting buses, storing advertising, attaching advertising to the bus, and related maintenance. (d) The commissioner shall hold harmless and indemnify each district for all liabilities arising from the advertising program. Each district must tender defense of all such claims to the commissioner within five days of receipt. (e) All revenue from the contract shall be deposited in the general fund.

No person shall at any time smoke, chew, or otherwise ingest tobacco, or carry or use an activated electronic delivery device as defined in section 609.685, subdivision 1, in a public school, as defined in section 120A.05, subdivisions 9, 11, and 13, or in a charter school governed by chapter 124E. This prohibition extends to all facilities, whether owned, rented, or leased, and all vehicles that a school district owns, leases, rents, contracts for, or controls. Nothing in this section shall prohibit the lighting of tobacco by an adult as a part of a traditional Indian spiritual or cultural ceremony. For purposes of this section, an Indian is a person who is a member of an Indian tribe as defined in section 260.755, subdivision 12.