SECTION 1.

 (a) The Director of Parks and Recreation, with the approval of the Director of General Services, is hereby authorized to enter into a mutually beneficial agreement with the City of Carlsbad, San Diego County, for the exchange of real property as specified in this section. The real property to be offered by the state consists of portions of the property known as South Carlsbad State Beach located between Cerezo Drive and Avenida Encinas in the City of Carlsbad. The real property to be offered by the city consists of a portion or portions of excess property created through the redesign and realignment of Carlsbad Boulevard.

(b) The City of Carlsbad shall reimburse the state for the difference in the appraised value of the property that is to be exchanged, if the state is found to be receiving less value, except that any costs for design or development that have been advanced on behalf of the state by the City of Carlsbad shall be deducted from the value on a prorate share basis, and for reasonable administrative costs incurred to complete the transfer of title.

(c) The City of Carlsbad shall be solely responsible for compliance with the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) in connection with the transfer of property ownership. The Department of Parks and Recreation shall be responsible for compliance with Section 6(f)(3) of the federal Land and Water Conservation Fund Act of 1965 (Public Law 88-578).

(d) The exchange of lands carried out pursuant to this section shall be based on current fair market value and subject to the terms and conditions, and with the reservations, restrictions, and exceptions, that the Director of General Services determines are in the best interests of the state, including the condition that the exchange shall result in no net cost or loss to the state.