CHAPTER 791. INTERLOCAL COOPERATION CONTRACTS

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GOVERNMENT CODE

TITLE 7. INTERGOVERNMENTAL RELATIONS

CHAPTER 791. INTERLOCAL COOPERATION CONTRACTS

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 791.001. PURPOSE. The purpose of this chapter is to

increase the efficiency and effectiveness of local governments by

authorizing them to contract, to the greatest possible extent,

with one another and with agencies of the state.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.002. SHORT TITLE. This chapter may be cited as the

Interlocal Cooperation Act.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.003. DEFINITIONS. In this chapter:

(1) "Administrative functions" means functions normally

associated with the routine operation of government, including

tax assessment and collection, personnel services, purchasing,

records management services, data processing, warehousing,

equipment repair, and printing.

(2) "Interlocal contract" means a contract or agreement made

under this chapter.

(3) "Governmental functions and services" means all or part of a

function or service in any of the following areas:

(A) police protection and detention services;

(B) fire protection;

(D) public health and welfare;

(E) parks and recreation;

(F) library and museum services;

(G) records center services;

(H) waste disposal;

(I) planning;

(J) engineering;

(K) administrative functions;

(L) public funds investment;

(M) comprehensive health care and hospital services; or

(N) other governmental functions in which the contracting

parties are mutually interested.

(4) "Local government" means a:

(A) county, municipality, special district, junior college

district, or other political subdivision of this state or another

state;

(B) local government corporation created under Subchapter D,

Chapter 431, Transportation Code;

Local Government Code;

(D) local workforce development board created under Section

2308.253; or

(E) combination of two or more entities described by Paragraph

(A), (B), (C), or (D).

(5) "Political subdivision" includes any corporate and political

entity organized under state law.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1993, 73rd Leg., ch. 823, Sec. 1, eff.

Sept. 1, 1993; Acts 2001, 77th Leg., ch. 98, Sec. 1, eff. Sept.

1, 2001; Acts 2003, 78th Leg., ch. 301, Sec. 2, eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

1317, Sec. 1, eff. June 18, 2005.

Sec. 791.004. INTERLOCAL CONTRACT; DUAL OFFICE HOLDING. A

person acting under an interlocal contract does not, because of

that action, hold more than one civil office of emolument or more

than one office of honor, trust, or profit.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.005. EFFECT OF CHAPTER. This chapter does not affect

an act done or a right, duty, or penalty existing before May 31,

1971.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.006. LIABILITY IN FIRE PROTECTION CONTRACT OR PROVISION

OF LAW ENFORCEMENT SERVICES. (a) If governmental units contract

under this chapter to furnish or obtain services of a fire

department, such as training, fire suppression, fire fighting,

ambulance services, hazardous materials response services, fire

and rescue services, or paramedic services, the governmental unit

that would have been responsible for furnishing the services in

the absence of the contract is responsible for any civil

liability that arises from the furnishing of those services.

(a-1) Notwithstanding Subsection (a), if a municipality, county,

rural fire prevention district, emergency services district, fire

protection agency, regional planning commission, or joint board

enters into a contract with a governmental unit under this

chapter to furnish or obtain fire or emergency services, the

parties to the contract may agree to assign responsibility for

civil liability that arises from the furnishing or obtaining of

services under the contract in any manner agreed to by the

parties. To assign responsibility for civil liability under this

subsection, the parties to the contract must assign

responsibility in a written provision of the contract that

specifically references this subsection and states that the

assignment of liability is intended to be different than

liability otherwise assigned under Subsection (a).

(b) In the absence of a contract, if a municipality or county

furnishes law enforcement services to another municipality or

county, the governmental unit that requests and obtains the

services is responsible for any civil liability that arises from

the furnishing of those services.

limits and immunities for a governmental unit provided by the

Texas Tort Claims Act, Chapter 101, Civil Practice and Remedies

Code, or other law.

(d) Notwithstanding any other provision of this chapter, a

contract under this chapter is not a joint enterprise for the

purpose of assigning or determining liability.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 2001, 77th Leg., ch. 811, Sec. 1, eff.

Sept. 1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

1337, Sec. 16, eff. June 18, 2005.

SUBCHAPTER B. GENERAL INTERLOCAL CONTRACTING AUTHORITY

Sec. 791.011. CONTRACTING AUTHORITY; TERMS. (a) A local

government may contract or agree with another local government or

a federally recognized Indian tribe, as listed by the United

States secretary of the interior under 25 U.S.C. Section 479a-1,

whose reservation is located within the boundaries of this state

to perform governmental functions and services in accordance with

this chapter.

(b) A party to an interlocal contract may contract with a:

(1) state agency, as that term is defined by Section 771.002; or

(2) similar agency of another state.

(b-1) A local government that is authorized to enter into an

interlocal contract under this section may not contract with an

Indian tribe that is not federally recognized or whose

reservation is not located within the boundaries of this state.

(1) study the feasibility of the performance of a governmental

function or service by an interlocal contract; or

(2) provide a governmental function or service that each party

to the contract is authorized to perform individually.

(d) An interlocal contract must:

(1) be authorized by the governing body of each party to the

contract unless a party to the contract is a municipally owned

electric utility, in which event the governing body may establish

procedures for entering into interlocal contracts that do not

exceed $100,000 without requiring the approval of the governing

body;

(2) state the purpose, terms, rights, and duties of the

contracting parties; and

(3) specify that each party paying for the performance of

governmental functions or services must make those payments from

current revenues available to the paying party.

(e) An interlocal contractual payment must be in an amount that

fairly compensates the performing party for the services or

functions performed under the contract.

(f) An interlocal contract may be renewed annually.

(g) A governmental entity of this state or another state that

makes purchases or provides purchasing services under an

interlocal contract for a state agency, as that term is defined

by Section 771.002, must comply with Chapter 2161 in making the

purchases or providing the services.

(h) An interlocal contract between a governmental entity and a

purchasing cooperative may not be used to purchase engineering or

architectural services.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1999, 76th Leg., ch. 405, Sec. 47, eff.

Sept. 1, 1999; Acts 2001, 77th Leg., ch. 98, Sec. 2, eff. Sept.

1, 2001.

Amended by:

Acts 2005, 79th Leg., Ch.

257, Sec. 1, eff. May 30, 2005.

Acts 2007, 80th Leg., R.S., Ch.

1213, Sec. 12, eff. September 1, 2007.

Sec. 791.012. LAW APPLICABLE TO CONTRACTING PARTIES. Local

governments that are parties to an interlocal contract for the

performance of a service may, in performing the service, apply

the law applicable to a party as agreed by the parties.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1997, 75th Leg., ch. 176, Sec. 1, eff. May

21, 1997.

Sec. 791.013. CONTRACT SUPERVISION AND ADMINISTRATION. (a) To

supervise the performance of an interlocal contract, the parties

to the contract may:

(1) create an administrative agency;

(2) designate an existing local government; or

(3) contract with an organization that qualifies for exemption

from federal income tax under Section 501(c), Internal Revenue

Code of 1986, as amended, that provides services on behalf of

political subdivisions or combinations of political subdivisions

and derives more than 50 percent of its gross revenues from

grants, funding, or other income from political subdivisions or

combinations of subdivisions.

(b) The agency, designated local government, or organization

described by Subsection (a)(3) may employ personnel, perform

administrative activities, and provide administrative services

necessary to perform the interlocal contract.

the administrative agency or designated local government is

exempt from or subject to taxation in the same manner as if the

property were held and used by the participating political

subdivisions.

(d) An administrative agency created under this section may

acquire, apply for, register, secure, hold, protect, and renew

under the laws of this state, another state, the United States,

or any other nation:

(1) a patent for the invention or discovery of:

(A) any new and useful process, machine, manufacture,

composition of matter, art, or method;

(B) any new use of a known process, machine, manufacture,

composition of matter, art, or method; or

manufacture, composition of matter, art, or method;

(2) a copyright of an original work of authorship fixed in any

tangible medium of expression, now known or later developed, from

which the work may be perceived, reproduced, or otherwise

communicated, either directly or with the aid of a machine or

device;

(3) a trademark, service mark, collective mark, or certification

mark for a word, name, symbol, device, or slogan that the agency

uses to identify and distinguish the agency's goods and services

from other goods and services; and

(4) other evidence of protection of exclusivity issued for

intellectual property.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1995, 74th Leg., ch. 481, Sec. 1, eff. Aug.

28, 1995; Acts 2003, 78th Leg., ch. 301, Sec. 3, eff. Sept. 1,

2003.

Sec. 791.014. APPROVAL REQUIREMENT FOR COUNTIES. (a) Before

beginning a project to construct, improve, or repair a building,

road, or other facility under an interlocal contract, the

commissioners court of a county must give specific written

approval for the project.

(b) The approval must:

(1) be given in a document other than the interlocal contract;

(2) describe the type of project to be undertaken; and

(3) identify the project's location.

not offer payment for a project undertaken without approval

required by this section.

(d) A county is liable to another local government for the

amount paid by the local government to the county for a project

requiring approval under this section if:

(1) the county begins the project without the approval required

by this section; and

(2) the local government makes the payment before the project is

begun by the county.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.015. SUBMISSION OF DISPUTES TO ALTERNATIVE DISPUTE

RESOLUTION PROCEDURES. Local governments that are parties to an

interlocal contract may provide in the contract for the

submission of disputes arising under the contract to the

alternative dispute resolution procedures authorized by Chapter

2009.

Added by Acts 2001, 77th Leg., ch. 666, Sec. 1, eff. Sept. 1,

2001.

SUBCHAPTER C. SPECIFIC INTERLOCAL CONTRACTING AUTHORITY

Sec. 791.021. CONTRACTS FOR REGIONAL CORRECTIONAL FACILITIES.

The parties to an interlocal contract may contract with the Texas

Department of Criminal Justice for the construction, operation,

and maintenance of a regional correctional facility if:

(1) title to the land on which the facility is to be constructed

is deeded to the department; and

(2) the parties execute a contract relating to the payment of

costs for housing, maintenance, and rehabilitative treatment of

persons held in jails who cannot otherwise be transferred under

authority of existing statutes to the direct responsibility of

the department.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

87, Sec. 25.080, eff. September 1, 2009.

Sec. 791.022. CONTRACTS FOR REGIONAL JAIL FACILITIES. (a) In

this section:

(1) "Facility" means a regional jail facility constructed or

acquired under this section.

(2) "Jailer" means a person with authority to supervise the

operation and maintenance of a facility as provided by this

section.

(b) A political subdivision of the state, by resolution of its

governing body, may contract with one or more political

subdivisions of the state to participate in the ownership,

construction, and operation of a regional jail facility.

boundaries of one of the participating political subdivisions.

The facility is not required to be located in a county seat.

(d) Before acquiring and constructing the facility, the

participating political subdivisions shall issue bonds to finance

the facility's acquisition and construction. The bonds must be

issued in the manner prescribed by law for issuance of permanent

improvement bonds.

(e) To supervise the operation and maintenance of a facility,

the participating political subdivisions may agree to:

(1) appoint as jailer of the facility the police chief or

sheriff of the political subdivision in which the facility is

located;

(2) form a committee composed of the sheriff or police chief of

each participating political subdivision to appoint a jailer of

the facility; or

(3) authorize the police chief or sheriff of each participating

political subdivision to continue to supervise and manage those

prisoners incarcerated in the facility under the authority of

that officer.

(f) If participating political subdivisions provide for facility

supervision under Subsection (e), the person designated to

supervise operation and maintenance of the facility shall

supervise the prisoners incarcerated in the facility.

(g) When a prisoner is transferred from the facility to the

originating political subdivision, the appropriate law

enforcement officer of the originating political subdivision

shall assume supervision and responsibility for the prisoner.

(h) While a prisoner is incarcerated in a facility, a police

chief or sheriff not assigned to supervise the facility is not

liable for the escape of the prisoner or for any injury or damage

caused by or to the prisoner unless the escape, injury, or damage

is directly caused by the police chief or sheriff.

(i) The political subdivisions may employ or authorize the

jailer of the facility to employ personnel necessary to operate

and maintain the facility.

(j) The jailer of the facility and any assistant jailers must be

commissioned peace officers.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.023. CONTRACTS FOR STATE CRIMINAL JUSTICE FACILITIES.

The state or an agency of the state may contract with one or more

entities to finance, construct, operate, maintain, or manage a

criminal justice facility provided, in the exercise of the

governmental power, for the benefit of the state in accordance

with this chapter and:

(1) Subchapter A, Chapter 494, Government Code;

(2) Subchapter D, Chapter 361, Local Government Code; or

(3) the Certificate of Obligation Act of 1971 (Subchapter C,

Chapter 271, Local Government Code).

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.024. CONTRACTS FOR COMMUNITY CORRECTIONS FACILITIES. A

community supervision and corrections department established

under Section 76.002 may agree with the state, an agency of the

state, or a local government to finance, construct, operate,

maintain, or manage a community corrections facility under

Section 76.010(b) or a county correctional center under

Subchapter H, Chapter 351, Local Government Code.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 7.18, eff.

Sept. 1, 1995.

Sec. 791.025. CONTRACTS FOR PURCHASES. (a) A local government,

including a council of governments, may agree with another local

government or with the state or a state agency, including the

comptroller, to purchase goods and services.

(b) A local government, including a council of governments, may

agree with another local government, including a nonprofit

corporation that is created and operated to provide one or more

governmental functions and services, or with the state or a state

agency, including the comptroller, to purchase goods and any

services reasonably required for the installation, operation, or

maintenance of the goods. This subsection does not apply to

services provided by firefighters, police officers, or emergency

medical personnel.

this section satisfies the requirement of the local government to

seek competitive bids for the purchase of the goods and services.

(d) In this section, "council of governments" means a regional

planning commission created under Chapter 391, Local Government

Code.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1995, 74th Leg., ch. 28, Sec. 1, eff. April

27, 1995; Acts 1997, 75th Leg., ch. 826, Sec. 1, eff. June 18,

1997.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

937, Sec. 1.62, eff. September 1, 2007.

Sec. 791.026. CONTRACTS FOR WATER SUPPLY AND WASTEWATER

TREATMENT FACILITIES. (a) A municipality, district, or river

authority of this state may contract with another municipality,

district, or river authority of this state to obtain or provide

part or all of:

(1) water supply or wastewater treatment facilities; or

(2) a lease or operation of water supply facilities or

wastewater treatment facilities.

(b) The contract may provide that the municipality, district, or

river authority obtaining one of the services may not obtain

those services from a source other than a contracting party,

except as provided by the contract.

payments made under the contract are the paying party's operating

expenses for its water supply system, wastewater treatment

facilities, or both.

(d) The contract may:

(1) contain terms and extend for any period on which the parties

agree;

(2) require the purchaser to develop alternative or replacement

supplies prior to the expiration date of the contract and may

provide for enforcement of such terms by court order; and

(3) provide that it will continue in effect until bonds

specified by the contract and any refunding bonds issued to pay

those bonds are paid.

(e) Where a contract sets forth explicit expiration provisions,

no continuation of the service obligation will be implied.

(f) Tax revenue may not be pledged to the payment of amounts

agreed to be paid under the contract.

(g) The powers granted by this section prevail over a limitation

contained in another law.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 2.01, eff.

Sept. 1, 1997.

Sec. 791.027. EMERGENCY ASSISTANCE. (a) A local government may

provide emergency assistance to another local government, whether

or not the local governments have previously agreed or contracted

to provide that kind of assistance, if:

(1) in the opinion of the presiding officer of the governing

body of the local government desiring emergency assistance, a

state of civil emergency exists in the local government that

requires assistance from another local government and the

presiding officer requests the assistance; and

(2) before the emergency assistance is provided, the governing

body of the local government that is to provide the assistance

authorizes that local government to provide the assistance by

resolution or other official action.

(b) This section does not apply to emergency assistance provided

by law enforcement officers under Chapter 362, Local Government

Code.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.028. CONTRACTS FOR JOINT PAYMENT OF ROAD CONSTRUCTION

AND IMPROVEMENTS. (a) In this section:

(1) "Highway project" means the acquisition, design,

construction, improvement, or beautification of a state or local

highway, turnpike, or road project.

(2) "Transportation corporation" means a corporation created

under Chapter 431, Transportation Code.

(b) A local government may contract with another local

government, a state agency, or a transportation corporation to

pay jointly all or part of the costs of a highway project,

including the cost of an easement or interest in land required

for or beneficial to the project.

accordance with a contract executed under this section, may:

(1) jointly undertake a highway project;

(2) acquire an easement, land, or an interest in land, in or

outside a right-of-way of a highway project, as necessary for or

beneficial to a highway project; or

(3) adjust utilities for the project.

(d) If a contract under this section provides for payments over

a term of years, a local government may levy ad valorem taxes in

an amount necessary to make the payments required by the contract

as they become due.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991. Amended by Acts 1997, 75th Leg., ch. 165, Sec. 30.196, eff.

Sept. 1, 1997.

Sec. 791.029. CONTRACTS FOR REGIONAL RECORDS CENTERS. (a) By

resolution of its governing body, a political subdivision of the

state may contract with another political subdivision of the

state to participate in the ownership, construction, and

operation of a regional records center.

(b) Before acquiring or constructing the records center, a

participating political subdivision may issue bonds to finance

the acquisition and construction of the records center in the

manner prescribed by law for the issuance of permanent

improvement bonds.

retention period is listed as permanent on a records retention

schedule issued by the Texas State Library and Archives

Commission under Section 441.158, unless the center meets

standards for the care and storage of records of permanent value

established by rules adopted by the commission under Section

203.048, Local Government Code.

(d) The Texas State Library and Archives Commission shall

provide assistance and advice to local governments in the

establishment and design of regional records centers.

Added by Acts 1991, 72nd Leg., ch. 38, Sec. 1, eff. Sept. 1,

1991.

Sec. 791.030. HEALTH CARE AND HOSPITAL SERVICES. A local

government may contract with another local government authorized

to provide health care and hospital services to provide those

services for the local government's officers and employees and

their dependents.

Added by Acts 1993, 73rd Leg., ch. 823, Sec. 2, eff. Sept. 1,

1993.

Sec. 791.031. TRANSPORTATION INFRASTRUCTURE. (a) This section

applies only to a local government, other than a school district,

that is authorized to impose ad valorem taxes on real property.

(b) The Texas Department of Transportation may enter into an

interlocal contract with a local government for the financing of

transportation infrastructure that is constructed or that is to

be constructed in the territory of the local government by the

department in a corridor of land on which no existing state or

federal highway is located.

(1) the duration of the agreement, which may not exceed 12

years;

(2) a description of each transportation infrastructure project

or proposed project;

(3) a map showing the location of each project and property

included in the contract; and

(4) an estimate of the cost of each project.

(d) The agreement may establish one or more transportation

infrastructure zones. The Texas Department of Transportation and

the local government may agree that at one or more specified

times, the local government will pay to the Texas Department of

Transportation an amount that is calculated on the basis of

increased ad valorem tax collections in a zone that are

attributable to increased values of property located in the zone

resulting from an infrastructure project. The amount may not

exceed an amount that is equal to 30 percent of the increase in

ad valorem tax collections for the specified period.

(e) Money received by the Texas Department of Transportation

under this section may be used:

(1) to provide a local match for the acquisition of right-of-way

in the territory of the local government; or

(2) for design, construction, operation, or maintenance of

transportation facilities in the territory of the local

government.

Added by Acts 1997, 75th Leg., ch. 1171, Sec. 1.33, eff. Sept. 1,

1997.

Sec. 791.032. CONSTRUCTION, IMPROVEMENT, AND REPAIR OF STREETS

IN MUNICIPALITIES. With the approval of the governing body of a

municipality, a local government may enter into an interlocal

contract with the municipality to finance the construction,

improvement, maintenance, or repair of streets or alleys in the

municipality, including portions of the municipality's streets or

alleys that are not an integral part of or a connecting link to

other roads or highways.

Added by Acts 1999, 76th Leg., ch. 671, Sec. 1, eff. Sept. 1,

1999.

Sec. 791.033. CONTRACTS TO CONSTRUCT, MAINTAIN, OR OPERATE

FACILITIES ON STATE HIGHWAY SYSTEM. (a) In this section, "state

highway system" means the highways in this state included in the

plan providing for a system of state highways prepared under

Section 201.103, Transportation Code.

(b) A local government may enter into and make payments under an

agreement with another local government for the design,

development, financing, construction, maintenance, operation,

extension, expansion, or improvement of a toll or nontoll project

or facility on the state highway system located within the

boundaries of the local government or, as a continuation of the

project or facility, within the boundaries of an adjacent local

government.

Texas Department of Transportation.

(d) Notwithstanding Section 791.011(d), to make payments under

an agreement under this section, a local government may:

(1) pledge revenue from any available source, including payments

received under an agreement with the Texas Department of

Transportation under Section 222.104, Transportation Code;

(2) pledge, levy, and collect taxes to the extent permitted by

law; or

(3) provide for a combination of Subdivisions (1) and (2).

(e) The term of an agreement under this section may not exceed

40 years.

(f) Any election required to permit action under this section

must be held in conformance with the Election Code or other law

applicable to the local government.

(g) In connection with an agreement under this section, a county

or municipality may exercise any of the rights and powers granted

to the governing body of an issuer under Chapter 1371.

(h) This section is wholly sufficient authority for the

execution of agreements, the pledge of revenues, taxes, or any

combination of revenues and taxes, and the performance of other

acts and procedures authorized by this section by a local

government without reference to any other provision of law or any

restriction or limitation contained in those provisions, except

as specifically provided by this section. To the extent of any

conflict or inconsistency between this section and any other law,

this section shall prevail and control. A local government may

use any law not in conflict with this section to the extent

convenient or necessary to carry out any power or authority,

expressed or implied, granted by this section.

Added by Acts 2005, 79th Leg., Ch.

281, Sec. 2.89, eff. June 14, 2005.

Sec. 791.034. INTERLOCAL CONTRACT FOR RELIEF HIGHWAY ROUTE

AROUND CERTAIN MUNICIPALITIES. (a) The governing body of a

municipality located in a county in which is located a facility

licensed to dispose of low-level radioactive waste under Chapter

401, Health and Safety Code, may enter into an interlocal

contract with the county for the construction and maintenance of

a relief highway route around and outside the boundaries of the

municipality that the governing body determines will serve a

public purpose of the municipality.

(b) The municipality may expend municipal funds and may issue

certificates of obligation or bonds to pay for expenses

associated with a relief highway route under Subsection (a).

Added by Acts 2009, 81st Leg., R.S., Ch.

357, Sec. 1, eff. June 19, 2009.

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