When covered local governments or districts show financial hardship, state agencies must speed up invoice payment requests when state and federal rules allow.
Agencies can arrange payment for verified, eligible work under assistance agreements with certain rural counties, municipalities, and districts. They must speed payment requests when those recipients show financial hardship, but only when state and federal rules allow.
The law counts districts within certain smaller counties as rural communities. It also includes independent districts that provide water and wastewater services in a rural area of opportunity.
An agency may arrange payment of invoices to a covered county, municipality, or special district for eligible work completed under an assistance agreement. This applies to state or federal assistance agreements with a rural county or municipality, a special district located entirely within such a county or municipality, or an independent water and wastewater district in a rural area of opportunity. The work must be verified, eligible, and completed under the agreement. The agency must speed payment requests when the county, municipality, or district shows financial hardship, but only as far as state and federal rules allow. The act takes effect July 1, 2026; this payment provision applies to covered assistance agreements.
The law's definition of a rural community includes certain special districts. This definition is used in the Rural Economic Development Initiative law. A district qualifies if it is within a county that meets the stated population limits, or if it independently provides water and wastewater services within a rural area of opportunity. The act takes effect July 1, 2026.
No hearings or votes scheduled.