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(1) The department allocates, reserves, and distributes the local government share of BARSAA funds, and maintains a project reporting website under the BARSAA program. The department does not monitor or oversee local government projects included in the local government's request for distribution.

(2) All BARSAA funds allocated under this program must be utilized for:

(a) construction, reconstruction, maintenance and repair of rural roads, city or town streets and alleys, and bridge projects; or roads and streets a local government has the responsibility to maintain, which does not include purchase of capital equipment; or

(b) a match for federal funds used for the construction of roads and streets that are a part of the national, primary, secondary or urban highway systems; or roads and streets a local government has the responsibility to maintain.

(3) The proposed projects must be detailed in a distribution request submitted by an eligible local government, in a format provided by the department. A local government requestor is responsible for retaining and providing documentation to ensure all funding received under the program is spent as defined and as provided in a local resolution and annual report.

(4) Projects budgeted within a local government's current fiscal year are eligible for distribution request of BARSAA program funds.

(5) The department shall make distribution within 30 calendar days of receipt of the completed request for distribution.

(6) A local government may withdraw a project originally listed on a distribution request, which action shall be deemed a completed project, creating unused funds. Within 90 days of completion or withdrawal of a project, a local government shall notify the department of the intent to obligate any unused funds for additional project(s) by March 1, five years after the calendar year in which the funds were distributed or would have been distributed if not reserved, or to return any unused funds to the department. Additional projects are subject to the same request requirements found in these rules.

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