The proposed bill, titled the "Headlee Unfunded Mandates Prohibition Act," aims to ensure that the state of Michigan complies with its constitutional obligation to finance the costs incurred by local units of government for activities or services mandated by state law. It establishes a fiscal note process that requires the legislature to assess the financial implications of any new state requirements on local governments before they are enacted. The bill specifies that local units are not obligated to comply with new mandates unless the state has appropriated sufficient funds to cover the necessary costs, and it prohibits penalties for non-compliance if the fiscal note process is not followed.

Key provisions of the bill include definitions of terms such as "activity," "service," and "state requirement," as well as the establishment of a standard accounting system to assist in the fiscal note process. The bill also outlines the responsibilities of state agencies and the legislature in determining the costs associated with new mandates. Additionally, it repeals previous legislation related to unfunded mandates, ensuring that the new framework is the primary mechanism for addressing state requirements imposed on local governments.

Statutes affected:
House Introduced Bill: 21.231, 21.244