California Code, Streets and Highways Code - SHC § 2530

(a) The federal act provides that sums apportioned to a state under this program be made available for projects throughout the state on a fair and equitable basis.  It is in the interest of the state and its counties and cities that the federal funds made available for the Safer Off-System Roads Program be made available by the commission for use on county roads and city streets.

(b) The funds shall be apportioned among the counties in accordance with the formula prescribed by federal law for apportionment among the states, except that no county shall receive less than one-half of 1 percent of each year's apportionment.

(c) The distribution of funds among the cities within each county and the county shall be determined by agreement between the county and a majority of the cities, which cities shall include a majority of the municipal population within the county.  A copy of the agreement shall be filed with the department.