1.1                          A bill for an act 
  1.2             relating to education; amending provisions regarding 
  1.3             school bus advertising; amending Minnesota Statutes 
  1.4             1997 Supplement, section 121.175. 
  1.5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.6      Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.7   121.175, is amended to read: 
  1.8      121.175 [ADVERTISING ON SCHOOL BUSES.] 
  1.9      (a) The commissioner, through a competitive process, and 
  1.10  with the safety approval of the school bus safety advisory 
  1.11  committee may contract with advertisers regarding advertising on 
  1.12  school buses.  At a minimum, the contract must prohibit 
  1.13  advertising and advertising images that: 
  1.14     (1) solicit the sale of, or promote the use of, alcoholic 
  1.15  beverages and tobacco products; 
  1.16     (2) are discriminatory in nature or content; 
  1.17     (3) imply or declare an endorsement of the product or 
  1.18  service by the school district; 
  1.19     (4) contain obscene material; 
  1.20     (5) are false, misleading, or deceptive; or 
  1.21     (6) relate to an illegal activity or antisocial behavior. 
  1.22     (b) Advertisement must meet the following conditions: 
  1.23     (1) the advertising attached to the school bus does not 
  1.24  interfere with bus identification under section 169.441; and 
  1.25     (2) the bus with attached advertising meets the school bus 
  2.1   equipment standards under sections 169.4501 to 169.4504. 
  2.2      (c) All buses operated by school districts may be attached 
  2.3   with advertisements under the state contract.  All school 
  2.4   district contracts shall include a provision for advertisement.  
  2.5   Each school district shall be reimbursed by the advertiser for 
  2.6   all costs incurred by the district and its contractors for 
  2.7   supporting the advertising program, including, but not limited 
  2.8   to, retrofitting buses, storing advertising, attaching 
  2.9   advertising to the bus, and related maintenance. 
  2.10     (d) The commissioner shall hold harmless and indemnify each 
  2.11  district for all liabilities arising from the advertising 
  2.12  program.  Each district must tender defense of all such claims 
  2.13  to the commissioner within five days of receipt. 
  2.14     (e) All revenue from the contract ~~shall~~ must be deposited 
  2.15  in the general fund of the district whose buses generated the 
  2.16  revenue.