The department of transportation and the executive director thereof are hereby designated and authorized to take all steps and adopt all procedures necessary to make and enter into such contracts or agreements as are necessary for state application and administration of the "Federal Transit Act", 49 U.S.C. sec. 5304. The department of transportation shall develop a procedure in conjunction with affected counties, municipalities, and other public bodies, which procedure shall provide for a fair and equitable distribution of funds pursuant to 49 U.S.C. sec. 5304 within the state. The department of transportation shall develop a procedure in cooperation with affected metropolitan planning organizations, which procedure shall provide for a fair and equitable distribution of section 8 funds within the state.
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