§8–507.

    (a)    (1)    In this section the following words have the meanings indicated.

        (2)    “Municipality” means any municipal corporation in this State that is entitled to receive federal-aid urban funds.

        (3)    “Urban area” means an area with boundaries fixed by the Administration that includes and is adjacent to a municipality or other urban place having a population of at least 5,000, as determined by the latest federal census.

    (b)    (1)    There is a County Highway Construction Fund in the Transportation Trust Fund.

        (2)    There is a Municipality-Urban Area Highway Construction Fund in the Transportation Trust Fund.

    (c)    In accordance with this section and Part II of Title 7, Subtitle 2 of the State Finance and Procurement Article, and with the consent of the Secretary, the Administration in any fiscal year may allocate from the Transportation Trust Fund:

        (1)    To the County Highway Construction Fund, an amount equal to the amount of federal-aid secondary highway funds that:

            (i)    Are available to the Administration from the Federal Highway Administration;

            (ii)    Are allocated by the Administration to the counties; and

            (iii)    The counties later release to the Administration for use on the State highway system; and

        (2)    To the Municipality-Urban Area Highway Construction Fund, with the approval of the releasing municipalities or urban areas, an amount equal to the amount of federal-aid urban highway funds that:

            (i)    Are available to the Administration from the Federal Highway Administration;

            (ii)    Are allocated by the Administration to the municipalities and urban areas; and

            (iii)    The municipalities or urban areas later release to the Administration for use on the State highway system.

    (d)    (1)    The Administration may apportion the amounts in each fund.

        (2)    Each county, municipality, or urban area that participates in a program under this section shall furnish matching construction amounts.

    (e)    The County Highway Construction Fund, the Municipality-Urban Area Highway Construction Fund, and the matching amounts required by this section may be spent only for highway construction and reconstruction under rules and regulations adopted by the Administration.