Due to the state's weak fiscal condition and corrupt politics, little progress was made until 1907, when the legislature replaced the Department of Highways with the Department of Engineering, within which there was a Division of Highways. California voters approved an $18 million bond issue for the construction of a state highway system in 1910, and the first California Highway Commission was convened in 1911. On August 7, 1912, the department broke ground on its first construction project, the section of El Camino Real between South San Francisco and Burlingame, which later became part of California State Route 82. The year 1912 also saw the founding of the Transportation Laboratory and the creation of seven administrative divisions, which are the predecessors of the 12 district offices in use . The original seven division headquarters were located in: