Section 357. Federal aid for public airports

No county, town, city, village
  or  authority in this state whether acting alone or jointly with another
  county, town, city, village or authority or with the state, shall submit
  to the administrator of civil  aeronautics  of  the  United  States  any
  project application, under the provisions of section nine (a) of the Act
  of  Congress, approved May thirteenth, nineteen hundred forty-six, being
  a public law three hundred seventy-seven, seventy-ninth Congress,  known
  and  hereinafter  designated  as  the  "Federal  Airport  Act",  or  any
  amendment thereto, unless the project and the project application  shall
  have been first approved by the state commissioner of transportation. No
  such  county,  town,  city,  village or authority shall directly accept,
  receive, receipt for, or disburse any funds granted by the United States
  under the Federal Airport Act but it must designate such commissioner as
  its agent, who, on its behalf, shall accept, receive,  receipt  for  and
  disburse such funds. Every such county, town, city, village or authority
  shall  enter  into  an  agreement with such commissioner prescribing the
  terms and conditions of such agency in accordance with the federal laws,
  rules and regulations and applicable laws of this state. Such moneys  as
  are  paid  over by the United States government shall be retained by the
  state or paid over to such county, town, city, village or authority upon
  such terms and conditions as may be imposed  by  the  United  States  in
  making such grant.