(1) The board has the following duties:

(a) To advise the director on aviation matters;

(b) To establish procedures for the administration and distribution of moneys credited to the aviation fund created in section 43-10-109, for aviation purposes at public airports, commercial service airports, and reliever airports, as defined in 49 U.S.C. sec. 47102, in this state;

(c) To seek recommendations of the director for the distribution of moneys credited to the aviation fund created in section 43-10-109;

(d) To establish policies for the growth and development of aviation in the state;

(e) To provide statewide aviation needs to be included in the department of transportation's statewide transportation plan; and

(f) To set and adopt on an annual basis, a budget for the division, including recommendations to the transportation commission for the amount to be allocated for administrative costs;

(g) (Deleted by amendment, L. 2009, (HB 09-1066), ch. 82, p. 301, § 2, effective August 5, 2009.)

(2) (a) The board shall have no control over federal funds for public airports, except as provided in paragraph (b) of this subsection (2). The board may accept federal funds to carry out its powers and duties pursuant to this article.

(b) Pursuant to section 47105 (a)(1)(B) of the federal "Revision of Title 49, Transportation", 49 U.S.C. sec. 40101 et seq., "Subtitle VII - Aviation Programs", Federal Public Law 103-272, 108 Stat. 1093, the board may also accept and distribute by contract to local airports federal funds available to the state for airport development projects benefitting one or more airports or for airport planning projects for one or more airports if the following requirements are met:

(I) The sponsor of a local airport gives written consent that the state apply for a project grant under the federal act cited in this paragraph (b);

(II) The federal secretary of transportation is satisfied that there is administrative merit and aeronautical benefit for the state being the sponsor of an airport development or planning project; and

(III) An acceptable agreement exists ensuring that the state will comply with appropriate grant conditions and other assurances the federal secretary of transportation requires.