School district approval made a condition of establishing an economic development district.

HF 3166 requires school district approval before a municipality can establish an economic development district using tax increment financing. Specifically, the governing board of every school district containing part of the proposed district must approve the tax increment financing plan by resolution before the county auditor certifies the district's tax capacity. This change applies to all economic development districts except those for qualifying workforce housing projects. The bill directly affects local governments (municipalities or authorities) seeking to create such districts, adding a new step requiring school district consent. It does not alter the purpose or structure of economic development districts, only the approval process.