AB 1389 was approved in September as part of the much-delayed2008/09 budget package. The CRA suit claims certain sections"authorize a one-time raid of $350 million in redevelopmentfunds."

The lawsuit seeks to "invalidate that aspect of AB 1389 and toprohibit the state from forcing county auditors to divertredevelopment funds to finance state obligations," the suitstates.

A possible suit was first made public in an exclusiveinterview in October, when CRA executive director JohnShirey told GlobeSt.com his group was "considering whether we'regoing to bring suit against the state."

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