Section 54-5-201 - State highways routed through municipalities - Contracting regarding rights-of-way(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.(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.Acts 1929, ch. 42, § 1; Code 1932, § 3242; Acts 1947, ch. 123, § 1; C. Supp. 1950, § 3242; impl. am. Acts 1959, ch. 9, § 3; Acts 1963, ch. 126, § 2; impl. am. Acts 1972, ch. 829, § 7; T.C.A. (orig. ed.), § 54-531; Acts 1987, ch. 180, § 1.