Senator Cabaldon's infrastructure financing district legislation carves out new protections for agricultural land by preventing property taxes from contracted farmland from being diverted to fund local infrastructure projects. The measure modifies how enhanced infrastructure financing districts (EIFDs) can allocate tax revenue by explicitly excluding parcels enrolled in Williamson Act or farmland security zone contracts.

The bill establishes specific parameters around agricultural land tax treatment within EIFDs. Properties under active Williamson Act or farmland security zone contracts would retain their existing tax status, with revenue continuing to flow to standard taxing entities rather than being divided to support EIFD projects. This exclusion extends to parcels transitioning out of agricultural contracts until both the contract termination is complete and the land is rezoned for non-agricultural use.

For properties not subject to agricultural contracts, the existing EIFD framework remains unchanged. Public financing authorities may continue allocating a portion of property tax revenue above an established baseline to fund authorized infrastructure improvements. The measure maintains current provisions requiring tax revenue to revert to standard taxing entities once an EIFD ceases operations.