HB 5797 Summary

• Implements section 29 of article IX of the Michigan Constitution requiring the state to finance costs incurred by local governments for state-mandated activities and services.

• Establishes a fiscal note process requiring state agencies and the legislature to estimate and appropriate funds for all necessary costs before enacting legislation that imposes new or increased activities or services on local units of government.

• Creates a local government mandate panel to review state requirements, develop cost estimates, make recommendations to reduce costs, and annually report compliance to the legislature.

• Prohibits local units of government from being required to comply with unfunded state mandates until the state has completed the fiscal note process and appropriated sufficient funds for implementation.

• Repeals 1979 PA 101 and establishes accounting systems to track and monitor state compliance with funding obligations for state-mandated local government activities and services.