Amends and adds to existing law to provide for the dissolution of urban renewal agencies and termination of urban renewal revenue allocation areas and to allow fire protection districts and ambulance service districts to opt out of certain urban renewal financing provisions.

This legislation provides a mechanism for local governing bodies to dissolve their urban renewal agencies early if the agencies have no outstanding debt. It also provides that for urban renewal revenue allocation areas created or modified after July 1, 2025, fire protection districts and ambulance service districts will not have their property tax increments included in the revenue allocation area, unless said districts affirmatively opt in to the revenue allocation area. In addition, fire protection districts and ambulance service districts currently included within an existing urban renewal revenue allocation area may withdraw from it if it is currently debt-free. These changes will allow communities to preserve the property tax base necessary to maintain these essential public safety services.