The department of transportation and the executive director thereof are designated and authorized to take all steps and adopt all proceedings necessary to make and enter into such contracts or agreements as may be necessary for state application and administration of the "Federal Transit Act", 49 U.S.C. sec. 5311, designated for public transportation projects in areas other than urbanized areas. The department of transportation shall prepare a program of such projects for submission to the secretary of transportation, which shall provide for a fair and equitable distribution of funds within the state and may include distributions to the state, municipalities, counties, and special districts organized for transportation purposes.
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