The following definitions apply to terms found in this subchapter: 

(1) "Allocate" or "allocation" means the department's annual calculation of a local government's share, in the ratio provided for in 15-70-101, MCA, of BARSAA revenue collected during the previous calendar year.

(2) "Bridge and Road Safety and Accountability" program, or "BARSAA" means the local government road construction and maintenance match program established by 15-70-127, MCA.

(3) "Calendar year" means a twelve-month period between January 1 and the following December 31.

(4) "Collected" means revenue received as required by 15-70-403, MCA.

(5) "Completed project" means a closed project on which planned expenditures for the project have been paid in full.

(6) "Distribute" or "distribution" means the department's disbursement of allocated or reserved BARSAA funds to local governments.

(7) "Fiscal year" means the twelve-month period between July 1 and the following June 30.

(8) "Local government" means a Montana city, town, county or consolidated city-county government.

(9) "Locally designated signature authority" means the person identified by a local government as authorized to approve requests for distribution, requests for reservation, and annual reports.

(10) "Obligate" or "obligation of funds" means an action by a local government to commit the BARSAA funds to a project, either through a contract or by inclusion as an authorized expenditure in a local government's fiscal year budget.

(11) "Project description" includes: project name, project location, type of work, total cost estimate, source of match, and estimated completion date.

(12) "Reserve" means allocated BARSAA funds held by the department at the request of a local government.

(13) "Unobligated funds" means funds not obligated by March 1, five years after the calendar year in which the funds were distributed or would have been distributed if not reserved, which must be returned to the department's BARSAA local government restricted account.

(14) "Unused funds" means funds not used by a local government for the requested purpose or project, by March 1, five years after the calendar year in which the funds were distributed or would have been distributed if not reserved, which must be returned to the department's BARSAA local government restricted account.

(15) "Withdrawn project" means a project a local government has removed from its original distribution request list or re-prioritized after distribution of funds.

(1) Any local government in Montana is eligible to receive BARSAA program funds.

(2) BARSAA revenue collected in the previous calendar year must be allocated by the department and held in the BARSAA restricted account for the benefit of local governments.

(3) Allocations must be made by the department by March 1 of each year.

(4) The department shall notify a local government of its allocation amount annually, by March 1 of each year.

(5) A local government must match each $20 request for distribution with at least $1 of local government budgeted matching funds. A local government must identify the source of the budgeted matching funds, which may not be from the motor fuel tax allocation in 15-70-101, MCA.

(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.

(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.

(1) All eligible local government requestors must complete the BARSAA program distribution request form found on the Department of Transportation's web site at www.mdt.mt.gov.

(2) The local government requestor may request a distribution of allocated funds by submitting a request to the department between March 1 and November 1 of the calendar year the funds were allocated. The distribution request must include all requirements stated in 15-70-130, MCA including:

(a) the amount of BARSAA funding sought, which may not exceed the amount allocated for that year, plus any eligible prior year reserved funds;

(b) a copy of an adopted resolution to request and accept the funding by the governing body of the local government. The resolution must identify the source of the matching funds required under 15-70-130, MCA;

(c) a description of the project(s) to be funded, which must be for:

(i) construction, reconstruction, maintenance or repair of rural roads, city or town streets or alleys, or bridges; or roads and streets the local government has responsibility to maintain; or

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

(3) Each distribution request must be complete and accompanied by all required supplemental materials. The department has an obligation to screen projects for eligibility and may request additional information to ensure the distribution request meets the requirements of 15-70-130, MCA. Distribution requests must be verified via electronic signature, by the locally designated signature authority, per the adopted resolution.

(4) All BARSAA program funds must be utilized solely for the project(s) as described in a local government's distribution request.

(5) Within 90 days of completion of a project, the local government shall notify the department of its intent to obligate any remaining funds for additional projects within five years of original allocation, or to return any unused funds to the department. Additional projects are subject to the same request requirements found in these rules.

(6) BARSAA program funds not distributed or reserved by a local government, or which are returned as unused, will remain in the BARSAA local government restricted account to be allocated in the next calendar year.

(1) A local government shall place BARSAA funds distributed by the department and the corresponding matching funds in a restricted asset account within the fuel tax apportionment fund that is carried forward until there is a need for the expenditure. The account must be kept separate from other local government accounts.

(2) A local government must obligate the funds by March 1, five years after the calendar year in which the funds were distributed or would have been distributed if not reserved.

(3) Unobligated funds must be returned to the department within 30 days of invoice date, and deposited in the BARSAA local government restricted account to be allocated for the BARSAA program in the next calendar year.

(1) A local government's share of allocated BARSAA program funds may be reserved for up to two years.

(2) A local government may only reserve allocated funds if it is unable to match the funds as required by 15-70-130, MCA.

(3) An eligible local government requestor must complete the BARSAA program reservation request form found on the Department of Transportation's web site at www.mdt.mt.gov.

(4) Completed fund reservation requests and all supplemental materials must be received between September 1 and November 1 of the fiscal year after the fiscal year in which the department allocated the funds.

(5) The local government requestor must adopt a resolution to reserve the funding, and state the reservation is necessary due to the local government's inability to match funds as required by 15-70-130, MCA. The resolution must be attached to the local government's reservation request to the department. Reservation requests must be verified via electronic signature, by the locally designated signature authority.

(6) If the local government does not request distribution of the reserved funds by November 1 of the fiscal year two years after the reservation request, the funds shall revert to the BARSAA local government restricted account to be allocated for the BARSAA program in the next calendar year.

(7) Requests for distribution of reserved funds are subject to the same distribution request requirements found in these rules.

(1) A local government must submit an annual report to the department by December 31 of each year providing information on projects listed on the appropriate annual distribution request (including projects administered by the department or by other government agencies), changes to the list of projects funded (including withdrawn projects, or added projects), and final project costs.