Whenever a public highway, or any portion thereof is at any time vacated, closed, abandoned, or discontinued, the public highway shall be used or disposed of for the use of the State in the case of a state highway as provided by law and for the use of the county in which the highway lies in the case of a county highway; provided that:

(1) In the case of a county highway, before it is disposed of in any way, it shall be first offered to the abutters for a reasonable length of time and at a reasonable price, and if they do not take the county highway, then it may be sold at public auction; and
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Terms Used In Hawaii Revised Statutes 264-3

(2) If any county highway, the right-of-way for which has been acquired in whole or in part by expenditure of federal funds, is abandoned and disposed of, the necessary portion of the proceeds from the sale thereof shall be remitted to the State for reimbursement or credit to the Federal Highway Administration, if reimbursement or credit is so required.

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