R926-3-4. Uses for Funding

(1) Determination of Authorized Uses. The Department shall determine how local highway authorities may spend class B or class C road funds as the Legislature directs and consistent with applicable law. A local highway authority may not violate applicable state or federal law when expending class B or class C road funds. (2) Local highway authorities may only spend class B or class C road funds for the following purposes: (a) to construct and maintain eligible class B or class C roads and to maintain class D roads; (b) to install and maintain traffic and pedestrian safety devices, including: (i) sidewalks; (ii) curb and gutter on eligible class B or class C roads and state highways; (iii) traffic signals, including necessary control devices, enclosures, electrical service equipment, and support structures; (iv) traffic signs, including associated lighting, electrical service, and mounting equipment; (v) street lighting, including necessary electrical service equipment and support structures; (vi) bicycle facilities in the highway right-of-way; (c) to procure, lease, or rent equipment used to construct and maintain class B or class C roads or to maintain class D roads; (d) for design, engineering, or administration work directly related to road maintenance and construction of class B or C roads or to maintain class D roads; (e) for future reimbursement of other funds for class B or class C road construction projects; (f) to acquire highway rights of way; (g) to build fencing and cattle guards associated with class B or class C roads; (h) to meet match requirements for federal match funding; or (i) to appropriate investment to gain value, provided net gains remain in the fund and are spent for authorized use. (3) Leasing Equipment. Equipment purchased with class B or class C road funds may be leased from a local highway authority to another public entity using the schedule of equipment rates posted on the Federal Emergency Management Agency, or FEMA website at, https://www.fema.gov/schedule-equipment-rates. (4) Emergency Use. A local highway authority may use equipment purchased with class B or class C road funds for purposes not otherwise authorized by Rule R926-3 in an emergency to make repairs and prevent further damage. (5) Multiple-Use Facilities. Local highway authorities may construct multiple-use facilities by mixing funds on a proportional basis, including constructing road maintenance buildings, storage sheds, and yards. (6) R.S. 2477 Issues. Class B or class C road funds may be used to pay the costs of asserting, defending, or litigating R.S. 2477 issues as authorized by Section 72-2-110. (7) Non-Permissible Uses. Non-Permissible uses of class B and class C road funds include the following: (a) non-road uses; (b) police costs; (c) to pay for the rental of equipment of a type that the local highway authority previously purchased with class B and class C road funds; or (d) except for circulator alleys in municipalities as authorized by Section 72-3-104, to build or maintain alleys.