(1) For all of the purposes of this part 2 and, with respect to state highways, for all the purposes of part 1 of article 3 of this title, state highways or county highways may be designated, established, and constructed in, into, or through cities and counties, cities, or towns when such highways form necessary or convenient connecting links for carrying state highways or county highways into or through such cities and counties, cities, or towns, and for such purposes the department of transportation and the boards of county commissioners of the several counties may condemn or otherwise acquire rights-of-way and access rights.
(2) Each county highway in a city or town shall be maintained by such city or town. Each state highway in a city and county, city, or town shall be maintained by the department of transportation. By agreement between any such city and county, city, or town, and the chief engineer with respect to a state highway or the board of county commissioners with respect to a county highway, the department of transportation or the board of county commissioners, as the case may be, may agree to perform or pay for all or a part of the maintenance of such state or county highway in such city and county, city, or town.