Bill > HB5248

This bill, named the "Headlee Unfunded Mandates Prohibition Act", establishes a comprehensive framework for how the state of Michigan must financially support local governments when new state laws or regulations require them to perform additional activities or services. The bill defines key terms like "activity", "service", and "state requirement", and creates a detailed fiscal note process where legislative fiscal agencies must estimate the costs to local governments before new legislation or regulations are enacted. Under the bill, the state legislature is required to appropriate sufficient funds to fully cover the necessary costs of any new state mandates, and local governments are not obligated to implement new requirements unless the state has completed the fiscal note process and provided full funding. The legislation also protects local governments from penalties if they cannot comply with a state requirement due to incomplete funding or ongoing legal challenges, and requires local governments to separately account for funds received under state mandates. Importantly, the bill stems from Section 29 of Article IX of the Michigan State Constitution, which prohibits the state from imposing unfunded mandates on local units of government, and aims to provide a clear, transparent mechanism for implementing this constitutional protection.

Budget and Finance

https://legislature.mi.gov/Bills/Bill?ObjectName=2025-HB-5248