SHC §301.4: (a) Upon the commission determining that it is in the best interests of the state to do so, the commission may, upon terms and conditions it approves, relinquish to the City of Laguna Beach the portio

(a) Upon the commission determining that it is in the best interests of the state to do so, the commission may, upon terms and conditions it approves, relinquish to the City of Laguna Beach the portion of Route 1 that is located between Moro Ridge Road and Via Mentone if the department and the City of Laguna Beach enter into an agreement providing for that relinquishment. (b) A relinquishment under this section shall become effective on the date following the county recorder’s recordation of the relinquishment resolution containing the commission’s approval of the terms and conditions of the relinquishment. (c) On and after the effective date of the relinquishment, all of the following shall occur: (1) The relinquished portion of Route 1 shall cease to be a state highway. (2) The relinquished portion of Route 1 shall be ineligible for future adoption under Section 81. (3) The City of Laguna Beach shall ensure the continuity of traffic flow on the relinquished portion of Route 1, including, but not limited to, any traffic signal progression. (4) For the relinquished portion of Route 1, the City of Laguna Beach shall maintain signs within its jurisdiction directing motorists to the continuation of Route 1.