provide that no county transfer jurisdiction of a county highway to a municipality unless the highway meets a minimum pavement condition rating, or unless there is mutual agreement of the county and municipality.

This bill requires counties to meet a minimum pavement condition rating before transferring jurisdiction of a county highway to a municipality, unless both parties agree otherwise. It directly affects county and municipal governments by setting a clear standard for highway maintenance responsibility during jurisdictional transfers. The provision aims to prevent municipalities from assuming control of poorly maintained roads without mutual consent.