CA Interest Groups Challenge Recently Passed RDA Legislation

Posted on: July 13, 2011

Gloves

Photo Credit: Flickr - by Generationbass.com

On June 28, California Governor Jerry Brown signed into law two bills (ABX1 26 and ABX1 27) that seek to either force California community redevelopment agencies (“RDAs”) to relinquish a portion of their revenues for certain municipal uses (e.g., education) or shut the RDAs down altogether. The California Redevelopment Association (CRA) and the League of California Cities have declared their intent to file suit challenging the legislation on constitutional grounds. The argument relies heavily on Proposition 22 passed by California voters in late 2010 which prohibits the State from borrowing or taking funds from redevelopment agencies.

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