60-2-127. Allocation of funds for projects. (1) Each year, out of federal-aid highway funds available for construction purposes, the commission shall allocate a portion of the funds for projects located on:

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(a)the national highway system;

(b)the primary highway system;

(c)the secondary highway system;

(d)the urban highway system; and

(e)state highways.

(2)In making allocations under subsection (1), the commission shall comply with all applicable provisions relating to the use of federal-aid highway funds contained in Title 23, U.S.C.

(3)Notwithstanding the allocations made available to the secondary and urban highway systems in subsection (1), the commission may, with the concurrence of the appropriate local officials, authorize the use of federal-aid highway funds allocated under subsections (1)(c) and (1)(d) for any project eligible under 23 U.S.C. § 133(b) relative to the surface transportation program.

(4)The commission may enter into an agreement with a city, county, or consolidated city-county government, under terms and conditions that the commission determines necessary, to allow the city, county, or consolidated city-county government recipient of urban funds apportioned under 60-3-211 to dedicate all or a portion of the urban fund apportionment to the retirement of the bonds authorized by 7-7-110.