MI SB0449

Requires the state legislature to annually appropriate and disburse funds to reimburse local units of government for the full necessary costs of all new activities or services mandated by state law enacted after December 23, 1978.

Establishes a fiscal note process requiring fiscal agencies to estimate increased costs to local governments before legislation is scheduled for third reading or before state agencies adopt new rules or regulations affecting local units of government.

Prohibits the state from imposing penalties, withholding funds, or applying sanctions on local governments that fail to comply with state requirements when the state has not followed the fiscal note process or failed to make timely payments for identified costs.

Defines key terms including "state requirement," "necessary cost," "de minimis cost" (costs not exceeding $300 per claim), and exempts certain requirements from the mandate funding obligation, including court orders, federal requirements, and constitutional amendments.

Repeals 1979 PA 101 (MCL 21.231-21.244) and requires the Department of Treasury to develop a standard accounting system within one year to track costs and assist with ongoing funding adjustments.