MI HB5801

Requires the House and Senate fiscal agencies to issue an annual report by December 31, 2010 and every year thereafter to the legislature, governor, and Michigan Court of Appeals regarding state compliance with funding obligations to local units of government under Article IX, Section 29 of the state constitution.

Report must detail the state-financed proportion of necessary costs for each activity or service required of local units of government and the nature and scope of each state requirement imposing costs.

Report must identify which local units of government are affected, whether identifiable direct costs are necessitated, the state agency supervising each requirement, and a description of the purpose and origin of each requirement.

Requires recommendations on whether state requirements should be eliminated, redesigned to reduce compliance costs, or fully or proportionately funded by the state depending on when the requirement was first imposed.

Directs fiscal agencies to provide recommendations to the legislature on addressing any Court of Appeals rulings that the state has failed to fully fund state requirements or the state-financed proportion of required activities or services.