(1) (a) When a portion of a state highway is relocated and, because of the relocation, a portion of the route as it existed before the relocation is, in the opinion of the transportation commission, no longer necessary as a state highway, the portion shall be considered as abandoned. The transportation commission may also determine that all or a portion of a state highway no longer functions as a part of the state highway system, and, with the agreement of each affected county or municipality, the state highway or portion thereof shall be considered as abandoned. An abandoned state highway or portion thereof shall become a county highway, upon the adoption of a resolution to that effect by the board of county commissioners of an affected county, or a city street, upon the adoption of an ordinance to that effect by the governing body of any affected municipality, within ninety days after the official notification of abandonment by the transportation commission. If the county or municipality ceases to use the abandoned portion of the highway for the purpose of a county highway or a city street, title to the abandoned state highway or portion thereof shall revert to the department of transportation. (b) When the department of transportation makes a payment to a county or municipality as compensation for the transfer of ownership to the county or municipality of all or a portion of a state highway abandoned pursuant to paragraph (a) of this subsection (1) as a result of the granting of an application for such a transfer of ownership filed on or after August 5, 2009, the county or municipality shall credit the payment to a special fund to be used only for transportation-related expenditures. (c) For purposes of this subsection (1), all or a portion of a state highway shall be considered to function as part of the state highway system, and shall not be determined by the transportation commission to no longer function as a part of the state highway system, unless the commission and each county or municipality that would be affected by the abandonment of the state highway or portion of a state highway agree that the state highway or portion of a state highway no longer serves the ongoing purposes of the state highway system. (2) If, pursuant to the provisions of subsection (1) of this section, the abandoned portion of a state highway is not claimed by a county, city, or town or if title to such abandoned portion reverts to the department of transportation, the department of transportation shall dispose of the abandoned portion by means of a sale or exchange for not less than fair market value in the manner set forth in section 43-1-210 (5). (3) If the department of transportation is not able to dispose of the abandoned portion of a state highway by means of a sale or exchange following a diligent effort for a five-year period, the department shall vacate the abandoned portion and title to such portion shall vest in accordance with the provisions of part 3 of this article. (4) If it appears to the transportation commission that any landowner suffers damages because of the abandonment of any portion of a state highway, such damages shall be determined, tendered, and paid out of funds allocated to the department of transportation in the same manner as other damages as provided by law. (5) As used in this section, "exchange" has the same meaning as set forth in section 43- 1-210 (5)(d).
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