This bill proposes new provisions in Minnesota Statutes that allow local governments, specifically counties and municipalities, to opt out of compliance with state mandates unless they receive adequate funding to cover the associated costs. Under the new sections [373.52] and [471.343], counties and municipalities are not required to comply with state mandates that affect their daily operations, resource allocation, or spending priorities until a law provides the necessary revenue. However, there are exceptions; compliance is still required if the cost of compliance is minimal compared to the total budget, and for laws related to financial audits or public health and safety.

The effective date for these provisions is set for state mandates that come into effect after June 30, 2025. This legislation aims to alleviate the financial burden on local governments by ensuring that they are not held accountable for mandates that they cannot afford to implement without state funding.