Michigan § 259.135 - Federal or other assistance to political subdivisions; submittal of project application to administrator of federal aviation administration; commission as agent; terms and conditions of agency; disbursements; applicability.

(1) A political subdivision of this state may accept federal or other assistance in the acquisition, construction, enlargement, improvement, maintenance, equipment, or operation of airports, landing fields, and other aeronautical facilities.

(2) A political subdivision of this state, whether acting alone or jointly with another political subdivision or with the state, shall not submit directly to the administrator of the Federal Aviation Administration or its successor agency any project application under the provisions of an act of Congress for airport and airway systems, unless the project and the project application have been first approved by the commission.

(3) Except as otherwise provided in this subsection, a political subdivision shall not directly accept, receive, receipt for, or disburse any funds granted by the United States for the purpose of acquisition, construction, enlargement, maintenance, equipment, or improvement of airports, landing fields, or other aeronautical facilities, but it shall designate the commission as its agent and in its behalf to accept, receive, receipt for, and disburse the funds described in this subsection. A political subdivision shall enter into an agreement with the commission which must prescribe the terms and conditions of the agency in accordance with federal laws, rules, and regulations and the applicable laws of this state. Money paid over by the United States government for the acquisition, construction, improvement, enlargement, equipment, or maintenance of airports, landing fields, or other aeronautical facilities must be channeled through the state treasury and disbursed for and in behalf of the political subdivision under the terms and conditions of the respective grants. The disbursements must be made in accordance with the accounting laws and procedures of this state. This subsection does not apply to funds granted by the United States to a qualified airport unless federal laws or regulations applicable to the funds prohibit the direct acceptance or receipt by, or disbursement to, a qualified airport.