The bill establishes a framework for local agencies, including cities, towns, and counties, to enter into development agreements, which are legally binding contracts that outline the terms and conditions for property development. It defines a "local agency" and specifies the requirements for these agreements, including the need for them to adhere to existing rules and regulations at the time of execution, while allowing for the application of new regulations that do not conflict with the original terms. The bill also mandates that local agencies conduct periodic reviews of these agreements to ensure compliance and provides for the recording of agreements with the county clerk to ensure public notice.

Additionally, the bill addresses the implications of incorporating unincorporated territories into cities or towns, stating that development agreements made prior to incorporation will remain valid for a specified duration. It allows for modifications to these agreements if necessary for public health and safety. The bill also stipulates that if state or federal laws enacted after the agreement's execution conflict with its provisions, those provisions may be modified or suspended to ensure compliance. The act is set to take effect on July 1, 2024.