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Committee advances bill to clarify tax-increment tools for local infrastructure and economic development
Summary
Assemblymember Carrillo told the Senate Committee on Local Government that AB 417 would refine tax-increment financing tools so local agencies can more readily fund infrastructure, housing and climate adaptation projects.
Assemblymember Carrillo presented AB 417 to the Senate Committee on Local Government as a set of clarifying amendments to make tax-increment tools — including Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs) — easier for local governments to use. The bill’s backers said the changes would support affordable housing, climate adaptation, transit and fire-hazard mitigation by enabling more regional partnerships and streamlined administrative steps.
Carrillo told the committee that EIFDs are widely used and that CRIAs were designed to target communities with the greatest need, but practical implementation issues have limited uptake. “This bill will make a few changes to EIFD law…to support small businesses in a manner that fosters economic recovery and provide clarification to encourage regional partnerships,” Carrillo said. He and witnesses emphasized that the bill’s changes are intended to be administrative and to preserve public participation and transparency.
Supporters included local economic development professionals and local governments: Aaron Laurel, City Manager and Port CEO for West Sacramento representing CALED; the Los Angeles Area Chamber of Commerce; the Humboldt County Board of Supervisors; the League of California Cities; the Associated General Contractors; and housing advocates including Habitat for Humanity affiliates. Laurel told the committee the technical fixes were developed in collaboration with local practitioners.
Opposition testimony focused on eminent domain. Bob Naylor (Fieldstead & Company) and Howard Amundson, Jr. said recent redevelopment and eminent domain actions harmed minority and disadvantaged neighborhoods and urged the bill be amended to preclude eminent domain. Carrillo and a CALED representative replied that the bill does not expand eminent domain authority and that eminent domain already exists under local law; they noted only one CRIA has been formed (Victorville), arguing that eminent domain has not been a driving factor behind widespread CRIA formation.
The committee voted to advance AB 417 to the Senate floor for further consideration.
