MI HB5248

Requires the state legislature to annually appropriate and disburse funds to local governments covering the full necessary costs of state-mandated activities or services imposed after December 23, 1978

Establishes that local governments are not obligated to provide new or increased state-mandated services unless a fiscal note has been prepared and the state has appropriated sufficient funds to cover the costs

Creates a fiscal note process requiring legislative fiscal agencies to review proposed legislation, rules, and regulations for impacts on local governments and estimate increased costs before enactment, including consultation with affected local units

Directs the Department of Treasury to develop a standard accounting system within one year to track mandate costs, with ongoing annual adjustments to state funding based on reported data from local governments

Prohibits the state from penalizing local governments for noncompliance with mandates if the state failed to complete the fiscal note process, failed to make timely payments, or if litigation challenging underfunding is pending

Repeals the existing State Financing of Activities or Services Required of Local Units of Government Act (1979 PA 101)