The bill amends the Local Development Act by updating key definitions and procedures for the approval of districts, plans, or projects. Notably, the term "blight" has been replaced with "underdeveloped," and the bill introduces a requirement for voter approval for the creation of any district, plan, or project, necessitating a majority vote from eligible voters in the relevant jurisdiction. Additionally, local taxing jurisdictions must separately approve the formation of an increment district, and those that do not approve will not have their tax revenues allocated for use by the increment district.

The bill also establishes new regulations for review committees involved in the approval process. Members of these committees are prohibited from accepting anything of value from entities that would benefit from the formation of an incentive or increment district and must complete at least twelve hours of instruction on the Local Development Act before voting on recommendations. The bill mandates annual meetings for review committees, requires presentations for and against proposed projects, and stipulates that professional opinions must be obtained prior to making recommendations. Furthermore, the review committee is tasked with preparing an economic impact study to evaluate the effects of apportioned tax revenues on local taxing jurisdictions and the anticipated economic outcomes of the project. This act is set to take effect on November 1, 2025.