3.989 REIMBURSEMENT TO LOCAL POLITICAL SUBDIVISIONS FOR COSTS OF
STATE MANDATES.
Subdivision 1.
Definitions. In this section:
(1) "Class A state mandates" means those laws under which the state mandates to political
subdivisions, their participation, the organizational structure of the program, and the procedural
regulations under which the law must be administered; and
(2) "Class B state mandates" means those mandates resulting from legislation enacted after
July 1, 1998, that specifically reference this section and that allow the political subdivisions to
opt for administration of a law with program elements mandated beforehand and with an assured
revenue level from the state of at least 90 percent of full program and administrative costs.
Subd. 2.
Report. The commissioner of finance shall prepare by September 1, 2000, and by
September 1 of each even-numbered year thereafter, a report of the costs of local mandates
established after June 30, 1997.
The commissioner shall include the statewide total of the statement of costs of local
mandates after June 30, 1997, as a notation in the state biennial budget.
Subd. 3.
Certain political subdivisions; report. The political subdivisions that have opted
to administer class B state mandates shall report to the commissioner of finance by September 1,
1998, and by September 1 of each year thereafter, identifying each instance when revenue for a
class B state mandate has fallen below 85 percent of the total cost of the program and the political
subdivision intends to cease administration of the program.
The commissioner shall forward a copy of the report to the chairs of the appropriate funding
committees of the senate and the house for proposed inclusion of the shortfall as a line item
appropriation in the state budget for the next fiscal year.
The political subdivision may exercise its option to cease administration only if the legislature
has failed to include the shortfall as an appropriation in the state budget for the next fiscal year.
Subd. 4.
Exemptions. Laws and executive orders enumerated in section
3.988 are exempted
from this section.
History: 1997 c 231 art 11 s 4; 1998 c 389 art 16 s 6,7