MI SB1141

Implements Michigan Constitution Article IX, Section 29 by requiring the state to fully fund the costs of new or increased local government activities and services imposed by state law after December 23, 1978.

Establishes a fiscal note process requiring state agencies and the legislature to estimate the cost impact on local units before enacting legislation imposing new requirements, with an appropriation bill tied to any mandate-creating legislation.

Prohibits local units of government from being penalized or losing state funding for failing to comply with state requirements unless the state has completed the fiscal note process and provided full funding for the mandated costs.

Creates a local government mandate panel to annually review state requirements, estimate compliance costs, and make recommendations to the legislature on whether requirements should be eliminated, redesigned to reduce costs, or fully funded by the state.

Requires the Department of Management and Budget to establish accounting systems by July 1, 2010 to track costs incurred by local units in complying with state requirements and to monitor state compliance with funding obligations; repeals the superseded 1979 PA 101.