(a) The department shall establish and administer a Safe Routes to School Program to distribute money received under the Hazard Elimination Program (23 U.S.C. § 152), as amended, to political subdivisions for projects to improve safety in and around school areas. Projects eligible to receive money under this program may include:
(1) installation of new crosswalks and bike lanes;
(2) construction of multiuse trails;
(3) construction and replacement of sidewalks;
(4) implementation of traffic-calming programs in neighborhoods around schools; and
(5) construction of wide outside lanes to be used as bike routes.
(b) The department, in considering project proposals under this section, shall consider:
(1) the demonstrated need of the applicant;
(2) the potential of the proposal to reduce child injuries and fatalities;
(3) the potential of the proposal to encourage walking and bicycling among students;
(4) identification of safety hazards;
(5) identification of current and potential walking and bicycling routes to school; and
(6) support for the projects proposed by local school-based associations, traffic engineers, elected officials, law enforcement agencies, and school officials.

(c) The department may allocate money received by the department from the federal government under the Hazard Elimination Program (23 U.S.C. § 152), as amended, to projects under this section.
(d) The department shall adopt rules to implement this section.