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Committee advances AB 417 to refine tax increment tools; opposition urges removal of eminent domain authority for CRIAs
Summary
The Local Government Committee voted 7-0 to pass AB 417, a bill that clarifies and streamlines rules for Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs). Opponents urged the author to eliminate a provision that grants CRIAs eminent domain authority.
The California State Assembly Local Government Committee voted 7-0 to report AB 417, a bill the author said would clarify and improve the functionality of tax increment financing tools used by cities and counties.
Assemblymember Carrillo said AB 417 makes adjustments to tools such as Enhanced Infrastructure Financing Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs) to support local infrastructure, affordable housing and economic recovery. “This bill will align CRA law with changes made to EIFD law … to streamline the formation process,” Carrillo said during the hearing.
Gurbak Sahota, president and CEO of the California Association for Local Economic Development, testified in support, saying local governments have used these tools and identified implementation issues the bill seeks to fix. Supporters named the League of California Cities, American Planning Association and California Chamber of Commerce among backers.
In opposition, Bob Naylor of Fieldstead & Company urged the author to amend the bill to remove CRIAs’ eminent domain authority, calling the provision an area of concern and saying his group would withdraw opposition if that change were made. Naylor said, in part, that CRIAs “do have eminent domain authority” and that abuse of eminent domain has been well documented.
Committee members moved the bill and carried it out of committee on a 7-0 vote. The committee record shows the measure was reported “do pass as amended.” The author and sponsors said the bill preserves public participation and transparency while reducing administrative barriers to formation and interagency participation.
