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(1) BARSAA program funds identified as match for federally funded projects being administered by the department will not be distributed separately to the local government, but will be moved by the department, upon request from the local government, to the highway state special revenue account as credit for the local government match for that identified project.

(2) BARSAA program funds identified as match for federally funded projects administered by a local government from federal funds received directly by the local government, or administered by another federal or state agency, including but not limited to discretionary or earmarked funds, will be distributed directly to the local government under this chapter.

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