MI SB0495

Legislature must annually appropriate and disburse funds to reimburse local units of government for the necessary costs of complying with new state requirements or increased levels of existing required activities and services.

Establishes a fiscal note process requiring the local government mandate panel to review legislation before third reading to determine if new or increased local activities/services will be required and estimate associated costs.

Local units of government cannot be obligated to provide new activities or services required by state law unless the state has completed the fiscal note process and appropriated sufficient funds, or a court determines the law does not impose a new mandate.

State cannot impose penalties, withhold funds, or apply sanctions to local governments for non-compliance if the state failed to follow the fiscal note process or failed to timely disburse identified costs.

Requires the Department of Technology, Management, and Budget to develop a standard accounting system by October 1, 2013, to track compliance costs and state funding obligations for local government mandates.