HB 5503 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 or services.

• Establishes a fiscal note process requiring the local government mandate panel to review legislation before third reading to determine if new or increased activities/services are imposed on local units and estimate necessary costs.

• Prohibits local units from being required to provide new or increased state-mandated activities/services unless the state appropriates and disburses sufficient funding based on a completed fiscal note analysis or a court determines no mandate exists.

• Prevents the state from imposing penalties, withholding funds, or other sanctions on local governments for non-compliance with state requirements if the state fails to follow the fiscal note process or fails to make timely disbursements of identified costs.

• Requires the Department of Technology, Management, and Budget to develop standard accounting systems within one year to track compliance costs and repeals 1979 PA 101.