As I clarified in a post below, I *don't* do this in situations with bike lanes because it is indeed illegal (not to mention rude, stupid, and unnecessary). That said, it is legal, and often necessary for us to take a portion of the bike lane to make a turn. While I don't know the specific law here I'm sure we have to yield to a cyclist in that case.

A supervisor once told me that "you have a license to be a road hog, so use it". That, of course, does not preclude us from yielding where necessary. But we will frequently ignore lanes marked out for cars because we have no choice.