CA AB1259

Amends Government Code Section 53398.54 to allow the City of Merced to establish or participate in enhanced infrastructure financing districts without receiving a "finding of completion" from its successor agency, as normally required for cities with dissolved redevelopment agencies.

Requires the City of Merced and the Merced Designated Local Authority (successor agency to the former Redevelopment Agency of the City of Merced) to pay in full all amounts outstanding demanded by the county auditor-controller, including any remaining amounts due under installment payment plans with the Department of Finance.

Maintains other standard requirements for the City of Merced, including compliance with Controller office reviews and certification that former redevelopment agency assets subject to litigation are not used to benefit the enhanced infrastructure financing district.

Establishes that a special statute is necessary for the City of Merced due to its unique financial circumstances and need for enhanced infrastructure financing district tools to fund housing construction, social services centers, and climate resilience projects.

Became effective upon Governor approval on October 10, 2023.