CCLME.ORG - The Department of Transportation

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review with the department the status of the proposed transportation
project involving that parcel.
(c) As used in this section, "special study" means a highway study
approved by the commission or the department on or before July 1,
1989, or a study approved after that date conducted pursuant to
Section 14530.5 of the Government Code.

104. The department may acquire, either in fee or in any lesser
estate or interest, any real property which it considers necessary
for state highway purposes. Real property for such purposes
includes, but is not limited to, real property considered necessary
for any of the following purposes:
(a) For rights-of-way, including those necessary for state
highways within cities.
(b) For the purposes of exchanging the same for other real
property to be used for rights-of-way.
(c) For rock quarries, gravel pits, or sand or earth borrow pits.

(d) For offices, shops, or storage yards.
(e) For parks adjoining or near any state highway.
(f) For the culture and support of trees which benefit any state
highway by aiding in the maintenance and preservation of the roadbed,
or which aid in the maintenance of the attractiveness of the scenic
beauties of such highway.
(g) For drainage in connection with any state highway.
(h) For the maintenance of an unobstructed view of any portion of
a state highway so as to promote the safety of the traveling public.

(i) For the construction and maintenance of stock trails.
(j) For the construction and maintenance of nonmotorized
transportation facilities, as defined in Section 156.

104.2. If property is provided through donation or at less than
fair market value to the department for state highway purposes, or
purchased with funds provided by a local agency, the donor or seller
may reserve the right to develop the property, but any development of
the property shall be subject to the approval of the department and
any reservations, restrictions, or conditions that it determines
necessary for highway safety.

104.4. Whenever the right of occupancy of any person upon national
forest or national park lands is terminated because of the proposed
construction of a state highway across such lands, the department
shall, in connection with the construction of the highway, acquire,
by purchase or condemnation, any buildings or improvements
constructed upon such lands by the person.

104.5. The director may execute all deeds or conveyances necessary
to convey any real property or interest therein to be sold or
exchanged under the provisions of this code. He may insert in any
such deed or conveyance such conditions, covenants, exceptions and
reservations as in his opinion are in the public interest or may
convey in fee simple absolute. All statutes relating to State lands
or to reservations of minerals therein or to reservations of rights
to prospect for or mine or remove such minerals are inapplicable to
lands heretofore or hereafter acquired by the State or conveyed by
the State pursuant to the provisions of this code or pursuant to the
provisions of previously existing statutes codified in this code, and
no such statute in respect to State lands hereafter enacted shall be
applicable thereto unless the Legislature expressly so declares.
It shall be conclusively presumed in favor of any purchaser for
value and without notice of any real property or interest therein
conveyed pursuant to the provisions of this code that the department
acted within its lawful authority in acquiring the property, and that
the director acted within his lawful authority in executing any deed
or conveyance or lease authorized by this code.

104.6. The authority conferred by this code to acquire real
property for state highway purposes includes authority to acquire for
future needs. Structures maintained or allowed to remain on
property which has been acquired, or is acquired in the future, for
future highway needs shall be maintained in conformance with
standards established in the building and safety ordinances of the
city or county having jurisdiction. The standards to which such
structure shall be made to conform are those standards, except for
such variances as may be applicable to the structure when acquired,
of the city or county having jurisdiction which are in effect at the
time of acquisition by the department.
The department is authorized to lease any lands which are held for
state highway purposes and are not presently needed therefor on such
terms and conditions as the director may fix and to maintain and
care for such property in order to secure rent therefrom. Except for
any rent required under the California Toll Bridge Authority Act
(Chapter 1 (commencing with Section 30000) of Division 17), or any
bond indenture executed under that act, to be deposited in some other
fund, all such rent shall be deposited to the credit of the State
Highway Account in the State Transportation Fund. Twenty-four
percent of such rent in the State Highway Account shall be allocated
pursuant to Section 104.10.
Whenever it is determined by the department that any rental
revenue collected under this section represents overpayment or
payment in duplicate, the department may make refund of such
overpayment or payment in duplicate from the State Highway Account.
Any reference in any law or regulation to the Highway Properties
Rental Fund or to the Highway Properties Rental Account in the
Transportation Tax Fund shall be deemed to refer to the State Highway
Account.

104.7. (a) Unless otherwise provided by statute, when requested by
a city, county, or special district, the department shall provide
information regarding, and shall lease, unoccupied, unimproved
property that is held for future highway purposes to the city,
county, or special district within which the property is located.
The city, county, or special district may use the leased property
first for agricultural and community garden purposes, and second for
recreational purposes, on terms and conditions not unreasonably
inhibiting the use of the property, including, but not limited to,
assumption of liability and installation and removal of improvements.
The lease shall be for one dollar ($1) per year for not less than
one year and shall be renewable.
The city, county, or special district may sublease the property
for agricultural or recreational purposes upon prior written
notification to the department, and may proceed with the sublease
unless disapproved by the department within 10 working days after the
notice is sent to the department. The first priority for a sublease
shall be given to the owner of property contiguous to the leased
land.
In a sublease of the property, the city, county, or special
district may charge rental fees at least sufficient to pay its
administrative costs. All money received by the city, county, or
special district under a sublease, less administrative costs, shall
be transmitted to the department for deposit in the State Highway
Account.
(b) Unoccupied, unimproved property that has commercial,
industrial, or residential use as its most feasible or best use, as
determined by the department, is not subject to this section.
(c) The Legislature finds and declares that the lease of
unoccupied, unimproved property pursuant to this section serves a
public purpose.

104.8. The department may retain in its records all deeds,
conveyances, and other evidences of title to or interests in real
property acquired by the department under the provisions of this
code. The Secretary of State and any other State officer or
department having custody of any such documents is authorized and
directed to deliver custody of such instruments to the department.
The department may furnish on demand to any person paying the cost of
preparing the same a certified copy of any such document.

104.9. None of the deeds, conveyances or other evidences of title
to or interests in real property acquired by the department under the
provisions of this code for highway purposes, need be recorded by
the Secretary of State.

104.10. The Department of Transportation shall, not later than the
first day of November following the close of any fiscal year, pay the
rents computed pursuant to Section 104.6 to the county in which such
real property is situated. The Department of Transportation shall
certify to the Department of Finance the amount of such rentals
attributable to each county and shall notify each county of the
rental and location of each piece of rental property for which rents
are deposited in the State Highway Account in the State
Transportation Fund.
The county auditor shall distribute any payment received by the
county pursuant to this section, to the county, to each revenue
district for which the county assesses and collects real property
taxes or assessments, and to every other taxing agency within the
county in which the property is situated in the amount as determined
by the board of supervisors, except that one-half of the allocation
for a rental property shall be allocated to the city in which the
rental property is located.
As used in this section, the terms "taxing agency" and "revenue
district" have the same meanings given them in the Revenue and
Taxation Code.
The money received by the respective jurisdictions under this
section shall be expended only for purposes authorized by Article XIX
of the California Constitution.

104.11. (a) Upon a finding that the action would not adversely
affect the activities of the department, the department may lease, in
whole or in part, property owned by it in the block bounded by First
Street, Main Street, Second Street, and Los Angeles Street in the
City of Los Angeles to public agencies or private entities for any
term not to exceed 99 years. Each lease shall be subject to
reservations, restrictions, and conditions as the department deems
appropriate. Prior to entering into a lease, the department shall
determine that the proposed lease is not in conflict with local
zoning ordinances. The lease may provide for joint use of the
property by the department. Each lease shall be subject to prior
approval by the commission.
(b) Revenues from leases shall be deposited in the State Highway
Account.
(c) The department shall act as agent for the payment of its
tenant's possessory interest tax in accordance with the procedures of
Section 104.13.

104.12. (a) The department may lease to public agencies or private
entities for any term not to exceed 99 years the use of areas above
or below state highways, subject to any reservations, restrictions,
and conditions that it deems necessary to ensure adequate protection
to the safety and the adequacy of highway facilities and to abutting
or adjacent land uses. Authorized emergency vehicles, as defined in
Section 165 of the Vehicle Code, which are on active duty and are not
merely being stored, shall be given preference in the use of these
areas, and no payment of consideration shall be required for this use
of the areas by these vehicles. Prior to entering into any lease,
the department shall determine that the proposed use is not in
conflict with the zoning regulations of the local government
concerned. The leases shall be made in accordance with procedures to
be prescribed by the commission, except that, in the case of leases
with private entities, the leases shall only be made after
competitive bidding unless the commission finds, by unanimous vote,
that in certain cases competitive bidding would not be in the best
interests of the state. The possibilities of entering into the
leases, and the consequent benefits to be derived therefrom, may be
considered by the department in designing and constructing the
highways.
Revenues from the leases shall be deposited in the State Highway
Account. If leased property was provided to the department for state
highway purposes through donation or at less than fair market value,
the lease revenues shall be shared with the donor or seller if so
provided by contract when the property was acquired. If the donor or
seller was a local agency which no longer exists at the time the
department enters into the lease, the local agency's share of lease
revenues shall be paid to the county or counties within which the
local agency was situated.
(b) Notwithstanding subdivision (a), in any case where sufficient
land or airspace exists within the right-of-way of any highway,
constructed in whole or in part with federal-aid highway funds, to
accommodate needed passenger, commuter, or high-speed rail, magnetic
levitation systems, and highway and nonhighway public mass transit
facilities, the department may make the land or airspace available,
with or without charge, to a public entity for those purposes,
subject to any reservations, restrictions, or conditions that it
determines necessary to ensure adequate protection to the safety and
adequacy of highway facilities and to abutting or adjacent land uses.

(c) The department shall consider future lease potential of areas
above or below state highway projects when planning new state highway
projects. This consideration shall be accomplished by
intradepartment consultation between offices concerned with project
development and airspace lease development.

104.13. (a) The department shall act as agent for the payment of
possessory interest taxes due from persons to whom the department
leases property of a type described in subdivision (e).
(b) The department shall annually provide a current list of all
such property located in each county to the assessor of the county.
Notwithstanding any other provision of law, the assessor shall submit
the possessory interest tax bill for each property directly to the
department, and the department shall be responsible for the payment
of the tax in the manner described in subdivision (c).
(c) All funds distributed to a county pursuant to Section 104.10
shall be deemed to be in full or partial payment on the total
possessory interest taxes due on the property described in
subdivision (e) located in the county. If the amount transferred to
a county pursuant to Section 104.10 in any year is less than the
total possessory interest tax due on all the property located in the
county, the department shall promptly forward to the county the
amount of the balance due.
(d) In lieu of the information required by Section 107.6 of the
Revenue and Taxation Code, all leases of property of a type described
in subdivision (e) shall contain a statement that the department
will pay all possessory interest taxes arising from the lease and
that the amount of rent charged reflects the cost of this added
responsibility of the department.
(e) This section shall apply only to real property held for future
state highway needs and to real property originally held for that
purpose, which the department has determined is no longer needed for
that purpose, prior to its sale or exchange by the department.

104.15. Whenever land has been acquired pursuant to former Section
104.1 or pursuant to Article 5 (commencing with Section 1240.410) of
Chapter 3 of Title 7 of Part 3 of the Code of Civil Procedure, the
department may, in its discretion, lease to a local agency for park
purposes all or any portion of the remainder outside the boundary of
the state highway or public work or improvement, but not beyond the
next adjacent dedicated street, when such use will protect such
highway, public work, or improvement and its environs, and will
preserve its view, appearance, light, air, and usefulness. Such
lease shall be made in accordance with procedures, terms, and
conditions to be prescribed by the commission. Such terms and
conditions shall include all of the following:
(a) Provisions requiring the local agency to develop and maintain
such portion of the remainder as a park.
(b) Provisions that whenever such portion of the remainder is
needed for state highway purposes, the lease shall terminate.
(c) Provisions that whenever such portion of the remainder ceases
to be used for park purposes, the lease shall terminate.

104.16. (a) Any airspace under a freeway, or real property acquired
for highway purposes, in the City and County of San Francisco, which
is not excess property, may be leased by the department to the city
and county or another political subdivision or a state agency for
purposes of an emergency shelter or feeding program.
(b) The lease shall be for one dollar ($1) per month. The lease
amount may be paid in advance of the term covered in order to reduce
the administrative costs associated with the payment of the monthly
rental fee. The lease shall require the payment of an administrative
fee not to exceed five hundred dollars ($500) per year, unless the
department determines that a higher administrative fee is necessary,
for the department's cost of administering the lease.
(c) The Legislature finds and declares that the lease of real
property pursuant to this section serves a public purpose.

104.17. (a) The department may provide information regarding, and
may lease, airspace under the interchange of Route 4 and Route 5 in
San Joaquin County and on the northeast corner of Route 101 and De La
Vina Street in the County of Santa Barbara, to a city, county, or
other political subdivision or another state agency for emergency
shelter or feeding program purposes. Property may be leased pursuant
to this section only if there is no buyer. The lease shall be for
one dollar ($1) per month. The lease amount may be paid in advance
of the term covered in order to reduce the administrative costs
associated with the payment of the monthly rental fee.
Any lease executed pursuant to this section shall also provide for
the cost of administering the lease.
The administrative fee shall not exceed five hundred dollars
($500) per year unless the department determines that a higher
administrative fee is necessary.
(b) The Legislature finds and declares that the lease of real
property pursuant to this section serves a public purpose.
(c) Any lease executed pursuant to subdivision (a) for airspace
under the interchange of Route 4 and Route 5 in San Joaquin County
shall provide for the rescission of existing leases of this airspace
between the department and the City of Stockton and for the refunding
of any rent paid pursuant to those leases for periods commencing on
or after January 1, 1988. Upon the request of the City of Stockton,
the department may renew the lease executed pursuant to subdivision
(a) for the airspace described in this subdivision for the period
requested by the city, but not to exceed 10 years, and may,
subsequent to that renewal, agree to not more than two additional
renewals of not more than 10 years each.

104.18. (a) Real property in the City of San Diego between 17th
Street and the west side of Route 5 between the southbound onramp and
the offramp near J Street, which was acquired for highway purposes
and which is not excess property, may be leased by the department to
a city, county, or other political subdivision or another state
agency for emergency shelter, feeding program purposes, or for the
establishment of a day care center for children.
(b) The lease shall be for one dollar ($1) per month. The lease
amount may be paid in advance of the term covered in order to reduce
the administrative costs associated with the payment of the monthly
rental fee. The lease shall require the payment of an administrative
fee not to exceed five hundred dollars ($500) per year, unless the
department determines that a higher administrative fee is necessary,
for the department's cost of administering the lease.
(c) The Legislature finds and declares that the lease of real
property pursuant to this section serves a public purpose.

104.19. (a) The excess property owned by the department described
in subdivision (b) that is leased until June 30, 2005, to the Century
Housing Corporation, a nonprofit corporation, and used for job
training and placement purposes, shall continue to be leased to that
party until June 30, 2028, at the existing rent.
(b) The excess property consists of approximately 1.3 acres, is
referred to as excess parcels 6160, 6166, 6167, and 6168, and is
located adjacent to Lennox Boulevard and State Highway (Interstate)
Route 405 in an unincorporated area of Los Angeles County.

104.21. (a) (1) The department may lease airspace under the
interchange of Route 4 and Sutter Street in San Joaquin County to any
city, county, or other political subdivision, or any state agency,
for feeding program purposes. The department may provide information
to those entities regarding the lease of that airspace for that use.
Property may be leased under this section only if there is no buyer
for the property. The lease shall be for one dollar ($1) per month.
The lease amount may be paid in advance of the term covered in
order to reduce the administrative costs associated with the payment
of the monthly rental fee.
(2) Any lease executed under this section shall also provide for
the cost of administering the lease. The administrative fee shall
not exceed five hundred dollars ($500) per year unless the department
determines that a higher administrative fee is necessary.
(b) The Legislature finds and declares that the lease of real
property under this section serves a public purpose.
(c) Upon the request of the City of Stockton, the department may
renew the lease for the period requested by the city, but not to
exceed 10 years, and may, subsequent to that renewal, agree to not
more than two additional renewals of not more than 10 years each.
(d) This section shall become operative on July 1, 1999.

105. The department may construct and maintain stock trails
approximately paralleling any State highway and may retain and
maintain for stock trails the right of way of any State highway which
is superseded by relocation.
The department may likewise designate as a stock trail any highway
which the State has relinquished to a county and which approximately
parallels any State highway. Where such a highway has been so
designated as a stock trail, it thereafter may not be abandoned or
vacated without the consent in writing of the department filed with
the board of supervisors.
The department shall post notices upon such stock trails, and upon
each highway at the entrances of such trails, directing all persons
to drive all untethered stock thereon.
Any person who drives any untethered stock upon any State highway
between the entrances of such a stock trail is guilty of a
misdemeanor, and, in addition, thereto, is liable for all damage
thereby done to said highway.

106. Whenever in its opinion the public convenience and necessity
require it for State highway purposes, the department may enter into
a cooperative agreement:
(a) To construct a bridge across any river, stream, or inlet of
the sea.
(b) To reconstruct or replace an existing, privately owned bridge
over any river, stream or inlet of the sea, which bridge is used for
highway purposes by the public and the owner.
(c) To acquire an existing bridge, or a right of way over the
location of such bridge, whenever the acquisition of such bridge or
right of way by the State alone would ordinarily require an excessive
expenditure of State highway money.

107. Any such agreement may be:
(a) With any person for the construction of a new bridge and the
use of any such bridge thereafter jointly by such person and the
public.
(b) With the owner of any existing bridge for the reconstruction
thereof, or for the replacement thereof by a new bridge, and the use
of any such bridge thereafter jointly by such owner and the public.

108. Any agreement made under the authority of sections 106 and 107
may provide:
(a) Either for apportionment of the expense of any such
construction, reconstruction, replacement, improvement, or
maintenance between such owner or person and the State, or for the
surrender to the State of the rights and property of the owner and
the construction, reconstruction, replacement, improvement, or
maintenance of any such bridge partly or wholly at the expense of the
State.
(b) For the terms and conditions upon which the owner may use such
bridge jointly with the public after the construction,
reconstruction, replacement or improvement thereof.
(c) For other pertinent matters to give effect to sections 106 and
107.

109. Any such bridge acquired, constructed, reconstructed, replaced
or improved in the manner provided in sections 106, 107 and 108 is a
part of the State highway system and title thereto shall vest in the
State. Any funds which, without such cooperative agreement, would
be available for the construction, reconstruction, replacement,
improvement or maintenance of a bridge at such location on the State
highway system, shall be available for a similar use under such
cooperative agreement.

109.5. Whenever the construction of any facility of the United
States or any department or agency thereof, or any feature thereof,
requires construction or relocation of, or other change in any state
highway or bridge, the department may enter into an agreement with
the United States, or with the United States and any person,
providing therefor, and for the exchange of any property required
thereby. The department may enter into like agreements for
acquisition of a right-of-way over, or respecting maintenance of, any
facility, constructed or owned by the United States or any
department or agency thereof, all or any portion of which is to be
used for highway purposes.

110. Nothing in this article shall prohibit any county or city from
contributing to the State, in the manner provided by law, funds or
real property or interests therein for the acquisition, construction,
reconstruction, replacement, improvement or maintenance of any such
bridge as is provided for by sections 106, 107 and 108, nor prohibit
the relinquishment of any such bridge by the department to any county
or city. Upon relinquishment such bridge shall be under the
supervision and control of the county or city to which it is
relinquished.

111. Whenever the natural course of a State highway passes into or
through any city and a State highway route through or around such
city is not specifically described by law, the commission shall
determine the location of the connecting portion necessary to make
the State highway continuous. Such location may be either through or
around such city, depending upon the commission's determination as
to which location will be of the greatest benefit to through traffic
upon such State highway.
Any portion of any street or highway, within the limits of such
city, may be adopted by the commission as a part of the State highway
system without compensation to the city.

111.5. Whenever a city street or a county highway and an existing
state highway (1) are substantially parallel; (2) each has been or is
to be restricted to one-way traffic, proceeding in opposite
directions as to each other, by ordinance of such city or county duly
enacted and applicable thereto; and (3) the commission determines
that the existing state highway is inadequate and that state highway
traffic conditions can be improved and state highway traffic more
economically served than by confining improvements to the existing
state highway, the commission may adopt any portion of the city
street or county highway so substantially parallel with an existing
state highway, as a part of the State Highway System without
compensation to the city or county, and the department may improve
the same and make necessary connections to route traffic one way on
such city street or county highway and the existing state highway,
respectively.
Whenever an ordinance of any city or county designating a
particular highway as a one-way highway becomes applicable to a state
highway, whether an existing state highway at the time of the
enactment of such ordinance or a city street or county highway
thereafter adopted as a state highway, such ordinance shall not be
thereafter rescinded, repealed, revoked or amended by action of the
legislative authority of such city or county without the consent in
writing of the department with the approval of the commission first
obtained, unless otherwise provided by the terms of any written
agreement between the State and any city entered into prior to the
effective date of this section. If any city street or county highway
which has become a portion of the State Highway System pursuant to
this section ceases to be a one-way street because the ordinance
declaring such street or highway to be a one-way street or highway is
rescinded, repealed, revoked, or amended, with the consent of the
department, as hereinabove provided, such city street or county
highway, or the portion thereof that is no longer restricted to
one-way traffic, shall by operation of law revert to the status of a
city street or county highway and cease to be a portion of the State
Highway System.

112. The department may enter into an agreement with any city
relative to proceedings to be taken by the city to fix or change the
grade of any State highway, or portion thereof, within the city in
order to establish a grade specified in such agreement. The city, in
fixing such grade, may follow the procedure specified in any statute
or ordinance providing for fixing or changing the grades of city
streets with like effect as if such highway were a city street and
the grade so established or changed shall be the official grade of
such State highway or portion thereof.
The city may contribute any part of the expense of such
proceedings, including payment of claims, out of any funds available
to it for the acquisition of rights of way for the construction,
improvement or maintenance of streets.
This section does not limit the right of the department, on
authorization of the commission, to proceed as provided in Article 1
of Chapter 6 of this division.

113. Upon a request from the department the governing body of any
city may acquire any real property or interest therein needed for
state highway purposes and lying within such city. The title to such
real property or interest therein may be taken in the name of the
State or of the city.
Any city may aid in the construction, improvement or maintenance
of any state highway located in whole or in part within its
boundaries by contributing any part of the expense thereof to the
department out of any city funds available or to become available for
construction, improvement or maintenance of streets within the city.

113.5. A city or county may enter into a cooperative agreement with
the department to fund the construction or improvement of a segment
of a state highway located in whole or in part within its
jurisdiction when the project is included in the state transportation
improvement program pursuant to Section 14529 of the Government
Code. The project shall be constructed by the department, and, upon
completion of construction, the highway segment shall be in the
possession and control of, and operated and maintained by, the
department.

114. (a) When the commission or other public entity has allocated
any funds for the construction, improvement, or maintenance of any
portion of a state highway within a city or a county, the department
may enter into a cooperative agreement with the city or the county or
other public entity for the performance of the work by the
department or by the city or the county or other public entity, or
for the apportionment of the expense of the work between the
department and the city or the county or other public entity.
(b) The department shall enter into a cooperative agreement with a
city, county, or other public entity to perform professional and
technical project development services, if the department determines
that the city, county, or other public entity in which the project
is located has qualified and available staff to perform the necessary
project services.

115. All work performed pursuant to any provisions of sections 111,
113 and 114 shall be performed to the satisfaction of and subject to
the approval of the department.

116. The department may delegate to any such city or county any
part of the powers and jurisdiction vested by law in the department,
except the power of approval, with respect to any portion of any such
state highway within such city or county, and may withdraw such
delegation.

117. Unless otherwise specifically provided in the instrument
conveying title, the acquisition by the department of any
right-of-way over any real property for state highway purposes,
includes the right of the department to issue, under Chapter 3
(commencing with Section 660), permits for the location in the
right-of-way of any structures or fixtures necessary to telegraph,
telephone, or electric power lines or of any ditches, pipes, drains,
sewers, or underground structures.

118. (a) Whenever the department determines that any real property
or interest therein, previously or hereafter acquired by the state
for highway purposes, is no longer necessary for those purposes, the
department may sell, contract to sell, sell by trust deed, or
exchange the real property or interest therein in the manner and upon
terms, standards, and conditions established by the commission. The
payment period in any contract of sale or sale by trust deed shall
not extend longer than 10 years from the time the contract of sale or
trust deed is executed, and any transaction involving a contract of
sale or sale by trust deed to private parties shall require a
downpayment of at least 30 percent of the purchase price, except as
follows:
(1) In the case of improved and unimproved real property sold or
exchanged for the purpose of housing for persons and families of low
or moderate income, as defined in Section 50093 of the Health and
Safety Code, the payment period may not exceed 40 years and the
downpayment shall be at least 5 percent of the purchase price. All
contracts of sale or sales by trust deed, for the purpose of housing
for persons and families of low- or moderate-income shall bear
interest. The rate of interest for any such contract or sale shall
be computed annually, and shall be the same as the average rate
returned by the Pooled Money Investment Board for the past five
fiscal years immediately preceding the year in which the payment is
made. The contract of sale and sales by trust deeds shall not be
utilized if the proposed development or sale qualifies for financing
from other sources and if the financing makes feasible the provision
of low- and moderate-income housing.
(2) All improved residential property sold to a local public
agency pursuant to paragraph (1), if subsequently sold or transferred
to a nonprofit housing organization, shall have the endorsement of
the city in which the parcels are located, or the county if the
parcels are located in an unincorporated area, that the housing shall
remain at affordable housing costs to persons and families of low-
or moderate-income and very low income households for the longest
feasible time, but for not less than 15 years, as determined by the
city or county, as the case may be. By endorsing such a sale, the
city or county accepts the responsibility of ensuring the housing
remains affordable. The local public agency shall record in the
office of the county recorder, covenants or restrictions implementing
this subdivision. Notwithstanding any other provision of law, the
covenants or restrictions shall run with the land and shall be
enforceable against the original purchaser from the department and
successors in interest.
(b) Any conveyance under this section shall be approved by the
commission and shall be executed on behalf of the state by the
director and the purchase price shall be paid into the State Treasury
to the credit of any fund, available to the department for highway
purposes, which the commission designates.
(c) Any such real property or interest therein may in like manner
be exchanged, either as whole or part consideration, for any other
real property or interest therein needed for state highway purposes.

118.1. Except as provided in Article 8 (commencing with Section
54220) of Chapter 5 of Part 1 of Division 2 of Title 5 of the
Government Code and Section 118. 6 of this code, with respect to
commercial real property acquired for the construction of a state
highway, but no longer required for that purpose because the
construction will not be undertaken, the department shall first offer
the real property for sale at its current fair market value to the
occupant thereof if the occupant is renting or leasing the real
property from the department, has used and occupied the real
property, and has made improvements of a value in excess of five
thousand dollars ($5,000) on the real property during that time at
his or her own expense consistent with the terms of the rental or
lease agreement with the department. For the purpose of establishing
fair market value, the department shall obtain at least two
independent appraisals from qualified appraisers.
The failure of the department to first offer excess real property
as required by this section shall not affect the validity of any
conveyance of this excess real property to any person or entity
unaware of the failure of the department to do so. However, this
shall in no way be construed as releasing the department from its
responsibility in offering that property to the occupants thereof
first.

118.5. No parcel of property acquired by eminent domain for the
purposes specified in Section 104 which, in its entirety, is found to
be no longer necessary for such purposes shall be subject to public
sale, unless an amount equal to the taxes which would have been paid
by the owner had the property not been acquired by the state is
transmitted by the department to the county auditor of the county in
which the property is located. The amount of any payments made
pursuant to Section 104.10 with respect to the property shall be
deducted from the amount required to be transmitted pursuant to this
section.
The money received by the county under this section shall be
expended only for the purposes authorized by Article XIX of the
California Constitution.

118.6. The department shall, to the greatest extent possible, offer
to sell or exchange excess real property within one year from the
date that it is determined by the department to be excess.
"Excess real property," for the purposes of this section, means
all land and improvements situated outside of calculated highway
right-of-way lines not needed or used for highway or other public
purposes, including, but not limited to, those leased to public
agencies pursuant to Section 104.15, and available for sale or
exchange.
The department shall adopt rules and regulations to determine
which real property outside of calculated right-of-way lines is no
longer needed or used for highway or other public purposes, and which
is available for sale or exchange. The department is authorized to
lease all real property not presently needed or used for highway
purposes pending the sale or exchange of such property.
Excess real property which consists of lands of notable
environmental value, such as, but not limited to, lands of
extraordinary scenic beauty, lands fronting on waterway, lakes, and
marshes, lands within the boundaries of parks, recreational areas,
wildlife preserves or refuges, and lands providing wildlife habitat
shall first be offered for sale or exchange to public agencies
operating parks and recreational areas as follows:
(a) To any park or recreation department of any city within which
the land may be situated.
(b) To any park or recreation department of the county within
which the land is situated.
(c) To any regional park authority having jurisdiction within the
area in which the land is situated.
(d) To the State Resources Agency or any agency which may succeed
to its powers.
The public agency desiring to purchase such land for park or
recreation use shall notify the department within 60 days of its
intent to purchase the land after receipt of the department's
notification of intent to sell the land. If the public agency
desiring to purchase the land and the department are unable to arrive
at a mutually satisfactory sales price for the land during the
60-day period, the land may be disposed of in the normal manner.
The failure of the department to first offer excess real property
which consists of lands of notable environmental value to public
agencies operating parks and recreational areas shall not affect the
validity of any conveyance of such excess real property to any person
or entity unaware of the failure of the department to do so;
however, this shall in no way be construed as releasing the
department from its responsibility in offering such property to such
public agencies first.

118.7. (a) The department may, upon terms, standards, and
conditions approved by the commission and the California Coastal
Commission, transfer environmental mitigation property located within
the city limits of Huntington Beach to a public agency or to a
nonprofit corporation that is qualified pursuant to Section 501(c)(3)
of the Internal Revenue Code and is organized for, among other
things, open-space or land conservation purposes.
(b) For the purposes of this section, "environmental mitigation
property," means property owned by the department that is required by
state or federal law, or by permit conditions imposed by a state or
federal agency, to be preserved or restored as natural habitat to
offset the environmental impacts caused by the construction and
operation of a state highway improvement project. However,
"environmental mitigation property" does not include property that is
part of highway operating right of way. Environmental mitigation
property shall be maintained as natural habitat in accordance with
the permit conditions. "Environmental mitigation property" means
property situated immediately east and adjacent to State Highway
Route 1 located between Brookhurst Street and Newland Street with an
approximate size of 7.1 acres.
(c) As a condition to the transfer of environmental mitigation
property pursuant to subdivision (a), the department may enter into a
cooperative agreement with the transferee to provide funding for the
future maintenance of the property consistent with any permit
conditions and mitigation requirements imposed by state or federal
law or conditions imposed by a state or federal agency. In
determining the amount of the funding provided, the department shall
consider the costs of maintaining the property and shall offset from
the amount of those costs any benefit or value received by the
transferee as a result of the transfer.
The department shall provide the fiscal and transportation policy
committees of the Legislature with at least 30 days prior written
notice of the transfer and cooperative agreement, and the amount of
any funding in accordance with the transfer and cooperative
agreement, to facilitate the Legislature's review of the transfer.
Funding provided as part of a transfer agreement shall be limited
to a single occurrence.
(d) (1) The public agency or nonprofit corporation to which the
department transfers the environmental mitigation property shall
assume the long-term responsibility for the future maintenance of the
property.
(2) (A) If the public agency or nonprofit corporation fails to
maintain the property in the manner required by law and in the manner
described in subdivision (b), or if the nonprofit corporation ceases
to exist, the property shall automatically revert to the department.

(B) If the property reverts back to the department pursuant to
this paragraph, any remaining funds from the original transfer
pursuant to subdivision (a) shall revert back to the department.
(C) Any costs, including legal costs, associated with reversion
pursuant to this paragraph shall not accrue to the department.
(e) (1) All deeds conveying property in accordance with this
section shall include a restriction limiting the use of the property
solely for environmental mitigation purposes in accordance with the
permit conditions specified in subdivision (b).
(2) All deeds conveying property in accordance with this section
and deeds related to a transfer or assignment of property under this
section shall be filed with the county recorder's office in the
county where the property is located.
(f) The public agency or nonprofit corporation to which the
department transfers environmental mitigation property shall not do
any of the following:
(1) Transfer or assign the property to another entity without
approval from the department and compliance with this section.
(2) Transfer or use the property for any other purpose than
required by permit conditions and mitigation requirements.
(3) Subdivide the property.
(4) Allow the property to be used to obtain development approval
for other property or to provide mitigation for the development of
other property.

119. Any real property or interest therein which has passed to the
State and has been accepted on behalf of the State by the department
for highway purposes, inadvertently or by mistake, may be reconveyed
to the persons entitled thereto. The reconveyance of any such real
property or interest therein shall be executed by the director on
behalf of the State. Such reconveyance shall not be made until the
consideration originally received therefor by the grantor is first
refunded or reconveyed to the State, or to any other party entitled
thereto.

120. With the consent and approval of the Public Utilities
Commission, the department may abandon that portion of any state
highway which crosses the tracks or right of way of any railroad or
street railroad, and may close such crossing.

121. Notwithstanding any other provision of law, a state highway
that has been designated by the federal government as an All-American
Road on or before April 30, 2002, shall be maintained and operated
by the department consistent with the recommendations for
context-sensitive design standards relative to aesthetics and safety
that are contained in the corridor management plan submitted to the
Federal Highway Administration.

122. Whenever jurisdiction over any highway within a State park has
been relinquished to the authority charged by law with the
management and control of such park, the department may construct,
improve or maintain such highway. Any construction, improvement or
maintenance of highways, other than State highways, within state
parks shall be subject to the approval of the park authority.

123. The provisions of section 122 shall neither affect nor limit
the department's authority, possession or control of any State
highway even though any portion of such State highway is located
within a State park.

123.5. The department shall erect and maintain signs directing the
way to each of the 21 California Missions originally established by
the Franciscan Fathers at the state highway intersection (or
turn-offs in case of freeways) nearest to each of the missions.

124. The department may restrict the use of, or close, any State
highway whenever the department considers such closing or restriction
of use necessary:
(a) For the protection of the public.
(b) For the protection of such highway from damage during storms
or during construction, improvement or maintenance operations
thereon.

124.1. (a) Upon completion by the department of a safety study and
a determination by the director, with the concurrence of the
Commissioner of the California Highway Patrol, that truck traffic
attributable to the United States-Mexico border crossing at Tecate in
San Diego County constitutes a safety hazard to schoolbus
operations, the department shall determine methods of mitigating the
safety hazard, including, but not limited to, prohibiting the use of
truck tractor-trailer combinations on Route 94 from the communities
of Boulevard and Manzanita to the junction of Route 54 (traveling
east and west) during the hours of 6 a.m. to 9 a.m. and 2 p.m. to
5 p.m. on those days that public school districts utilize that
portion of Route 94 to operate schoolbuses, as defined in Section 545
of the Vehicle Code.
(b) Any person operating a vehicle on Route 94 in violation of
this section is guilty of an infraction punishable as provided in
Section 42001 of the Vehicle Code.

125. To notify the public that a state highway is closed or its use
restricted, the department may:
(a) Erect suitable barriers or obstructions upon such highway.
(b) Post warnings and notices of the condition of any such
highway.
(c) Post signs for the direction of traffic upon it, or to or upon
any other highway or detour open to public travel.
(d) Place warning devices on such highway.
(e) Assign a flagman to warn, detour or direct traffic on such
highway.

127. The California Highway Patrol shall cooperate with the
department in the enforcement of the closing, or restriction of use,
of any State highway.

128. The department shall maintain, in each district office, a file
of its final construction plans and right-of-way record maps for all
completed state highway projects located within the district. The
department may file, in the office of the recorder of the county in
which any state highway is located, such plans, maps, or drawings of
each state highway as the department deems necessary in the public (continued)