The commissioner may acquire, by agreement with the owner, lands and property or any interest therein for highway purposes in the name of the state at what he considers a reasonable compensation, and, with approval of the governor and council, may sell, convey, or lease, in the name of the state, any land or property or any interest therein which the state has acquired for highway purposes. The commissioner may authorize the use of highway funds by agreement with another state agency or with a municipality, as authorized by federal regulations, for the functional replacement of land and improvements required for highway purposes.
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