Subject to the policies of the state board [department], the state transportation division of the department of education [public education department] shall:
A. establish standards for school bus transportation;
B. establish standards for school bus design and operation pursuant to provisions of Section 22-16-11 NMSA 1978;
C. establish procedures pertaining to the resolution of transportation issues in areas where local school districts are engaged in school district boundary disputes;
D. enforce those regulations adopted by the state board [department] relating to school bus transportation;
E. audit records of school bus contractors or school district-owned bus operations in accordance with regulations promulgated by the state transportation director;
F. establish standards and certify for safety, vehicles that are defined as school buses by the Motor Vehicle Code [Articles 1 to 8 of Chapter 66 [except 66-7-102.1] NMSA 1978]; and
G. establish regulations for the purpose of permitting commercial advertisements on school buses.