The governing body of a political subdivision or road district that determines an improvement is reasonable, necessary, and beneficial to the subdivision or district may contract with another governmental entity to:

1. (1) acquire with bond proceeds necessary rights-of-way for the road or highway; and
2. (2) construct and maintain the road or highway in cooperation with the entity.

Acts 1995, 74th Leg., ch. 165, Sec. 1, eff. Sept. 1, 1995.