Montana Title 67. Aeronautics § 67-10-405. Federal and state money

(1) A municipality may accept, receive, receipt for, disburse, and spend federal and state money and other money, public or private, made available by grant or loan or both to accomplish any of the purposes of this chapter. All federal money accepted under this section must be accepted and spent by the municipality upon terms and conditions prescribed by the United States and consistent with state law. All state money accepted under this section must be accepted and spent by the municipality upon terms and conditions prescribed by the state. Unless otherwise prescribed by the agency from which the money is received, the chief financial officer of the municipality shall on its behalf deposit and keep all money received pursuant to this section in separate funds, designated according to the purposes for which the money is made available, in trust for those purposes.

(2) No application may be made by a municipality for federal aid, as provided in this section, unless the “project application”, as defined in the Federal Airport Act of 1946 and regulations of the administrator of civil aeronautics, is first approved by the department.

(3) A municipality may, with the approval and consent of the department, designate the department as its agent to accept, receive, receipt for, and disburse federal and state money and other money, public or private, made available by grant or loan or both to accomplish any of the purposes of this chapter. A municipality may, with the consent of the department, designate the department as its agent in contracting for and supervising the planning, acquisition, development, construction, improvement, or equipment of an airport or other air navigation facility. All contracts made, let, or awarded by the department acting as agent of a municipality under this section must be made, let, or awarded pursuant to the laws governing the making of contracts by or on behalf of the state. The municipality may enter into an agreement with the department providing for payment to the department for services rendered as agent and prescribing the terms and conditions of the agency, in accordance with terms and conditions prescribed by the United States, if federal money is involved and in accordance with applicable state law. All federal money accepted under this section by the department must be accepted and transferred or spent by the department upon terms and conditions prescribed by the United States. All money received by the department under this subsection must be deposited in the state treasury and, unless otherwise prescribed by the agency from which the money is received, must be kept in separate funds designated according to the purposes for which the money is made available and held by the state in trust for those purposes.