The department shall act as an agent of any airport sponsor of this state upon the request of the airport sponsor, in accepting, receiving and receipting for any grants or funds for airports or other aviation purposes, and in contracting for the acquisition, construction, maintenance, or operation of airports or aviation facilities, financed either in whole or in part by federal grants. The governing body of the airport sponsor shall designate the department as its agent for purposes of this section and enter into an agreement with the department prescribing the terms and conditions of the agency.
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