State officials may send restructuring funds to third parties for municipalities

The law bars designating a municipality as tier IV except through the method named in the cited statute. The rule applies to municipalities that could be designated as tier IV municipalities. The text begins with “notwithstanding” other provisions of the same section. The restriction does not apply when the designation uses the method in subdivision (1) of subsection (a). The provision is effective October 1, 2026, and says the restriction lasts until April 1, 2018.

The secretary may send Municipal Restructuring Fund money to a third party for a designated tier II, tier III, or tier IV municipality. The provision covers designated tier II, tier III, and tier IV municipalities and third parties receiving money for them. Money received under this section may be used in part to pay an arbitrator selected under the cited arbitration provision. The provision is effective October 1, 2026.

The law defines “planning region” as having the meaning given in section 4-124i. The definition applies wherever the cited planning and development statute uses the term “planning region.” The provision is effective October 1, 2026.