AL SB362

Establishes a three-tier rural classification system for Alabama communities: Tier One (Remote/Deep Rural) for areas with 2,500 or fewer residents or 50 or fewer persons per square mile; Tier Two (Rural) for areas with 10,000 or fewer residents or 200 or fewer per square mile; Tier Three (Rural-Adjacent/Underserved) for areas with 20,000 or fewer residents or 500 or fewer per square mile

Classifications are determined at the municipal, unincorporated community, or census tract level rather than countywide totals, allowing communities within metropolitan counties to qualify as rural based on actual conditions

Defines three economic character types for communities: agricultural (farming, ranching, forestry-oriented), industrial (manufacturing, processing, logistics-based), and resource-based (timber, mining, energy, fisheries-dependent)

Authorizes state agencies to use the tiered classification system to establish program eligibility, prioritize funding and grants, adjust matching requirements, and target resources to underserved areas

Effective October 1, 2026, with agencies permitted to adopt rules governing use of population data, census designations, and commuting patterns for classification purposes