(a) The department shall construct, reconstruct and improve streets and maintain the streets in municipalities over which traffic on state highways is routed; or enter into contracts with the municipalities in the state regarding the construction, reconstruction and improvement of streets and maintenance of the streets in municipalities over which traffic on state highways is routed, and is authorized to enter into contracts with municipalities regarding the acquisition of rights-of-way for those streets, and is authorized to expend state or federal funds, or both, in carrying out this section; provided, that where any federal funds are used in the construction or reconstruction of any street, the municipality shall first agree to comply with, and conform to, all federal and state requirements with reference to traffic regulations and street markings.
Highway: includes public bridges and may be held equivalent to the words "county way" "county road" or "state road". See Tennessee Code 1-3-105
Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
State: when applied to the different parts of the United States, includes the District of Columbia and the several territories of the United States. See Tennessee Code 1-3-105
(b)(1) The state shall pay all the costs for any highway or parts of the highway designated and adopted by the department as and for a state or state and federal aid highway in the state’s system of highways; provided, that a municipality may contribute sums that may be approved by its governing body to the cost.(2) No municipality shall be required to pay or enter into an agreement to pay any part of the costs.(3) However, the state’s obligation for maintenance of its system of highways shall be governed by those limitations now set out by law, it being the intent of this section neither to enlarge nor to diminish present obligations for this maintenance.
