Michigan House Bill HB5353

Michigan 2023-2024 Regular Session

• Introduced: 11/14/23
• Refer: 11/14/23

Caption

State management: other; state financing of activities or services required of local units of government; provide for. Implements sec. 29, art. IX of the state constitution & repeals 1979 PA 101 (MCL 21.231 - 21.244).

Impact

The bill lays out a structured fiscal note process that must be adhered to whenever new legislation affecting local governments is proposed. This process requires that fiscal agencies assess potential costs and fund these adequately, ensuring that local units are not obligated to provide new or enhanced services unless the state has appropriated sufficient funds based on a completed fiscal note analysis. This shift aims to enhance transparency and accountability regarding the financial implications of state-mandated activities.

Summary

House Bill 5353, officially known as the 'Headlee Unfunded Mandates Prohibition Act,' seeks to implement section 29 of Article IX of the Michigan Constitution. This legislation establishes a framework for ensuring that the state compensates local units of government for costs incurred from new activities or services mandated by state law. The primary objective of the bill is to prevent state mandates from imposing financial burdens on local governments without providing adequate funding, thereby safeguarding local autonomy and fiscal stability.

Contention

Debate surrounding HB5353 has revealed notable tensions between state lawmakers and local governments. Proponents argue that the bill is essential for protecting local governments from unfunded mandates that could lead to budget crises. Conversely, some stakeholders express concerns that the requirements established in the bill might complicate state operations by slowing down legislative processes with additional fiscal reviews, potentially impeding timely responses to public needs.