(a) By contract between the municipality and the system, the governing body of the municipality in which a component institution of the system is located may delegate to the system the authority to regulate the parking of vehicles on any public street running through or immediately adjacent to property owned or occupied and controlled by the system.
(b) The contract may authorize the system to assign and regulate parking spaces for its use, to charge and collect a fee from its personnel and students for parking, to prohibit parking, and to charge and collect a fee for removing vehicles parked in violation of law or ordinance or in violation of a rule governing the parking of vehicles adopted by the board. All parking violations shall be filed in the municipal court or the justice of the peace court having jurisdiction over the offense.

(c) Before the contract is considered by the governing body of the municipality or the board, the attorney general and the applicable city attorney shall review and either approve the contract or file written legal objections to the contract with the chief executive officer of both the board and the governing body of the municipality. The contract must be approved by resolution of the board and the governing body of the municipality.