1.1 	A bill for an act
1.2 	relating to intergovernmental operations; providing for elimination of 
1.3 	unnecessary mandates; providing for better public understanding of the roles 
1.4 	and responsibilities of state and county governments; providing for financial 
1.5 	accountability between state and county governments;proposing coding for new 
1.6 	law in Minnesota Statutes, chapters 3; 275.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. FINDINGS; FINANCIAL ACCOUNTABILITY.
 1.9 	The legislature of the state of Minnesota is responsible for establishing policy 
1.10 	on a statewide basis, with or without the accompanying funds to support the required 
1.11 	activity, and counties serve as the fiscal and operational agent of the state, carrying out the 
1.12 	mandates and utilizing local property tax dollars if state funding is not provided.

1.13 	Sec. 2. [3.99] LEGISLATIVE REVIEW OF STATE-IMPOSED MANDATES.
1.14 	Each state agency that has within its jurisdiction requirements imposed on counties, 
1.15 	shall submit a report to the legislature no later than February 1, 2010, and by February 
1.16 	1 of each year thereafter, indicating the continuing need, any proposed modifications, 
1.17 	consideration of elimination, ability of counties to have more flexibility, and funding status.
1.18 	If an agency fails to file the report, a county may choose to continue, modify, or 
1.19 	eliminate any or all of the mandates under the jurisdiction of the agency.
1.20 	If, after legislative review by the appropriate policy and finance committees, the 
1.21 	mandate is continued without adequate state dollars provided, the county may levy for the 
1.22 	service, outside of any existing levy limits, and shall indicate on the proposed property 
1.23 	tax notice for the year of the levy, that the amount is being levied as the result of an 
1.24 	unfunded mandate.

2.1 	Sec. 3. [275.77] LEVY LIMIT EXCEPTIONS.
2.2 	Notwithstanding any law to the contrary, a county may levy, outside of any applicable 
2.3 	levy limits, the amount it is required to spend for any state mandate that is imposed after 
2.4 	January 1, 2009, that does not provide funding to cover the cost of the mandated activity.
2.5 	The proposed property tax notices for taxes payable in 2010 and thereafter must 
2.6 	include a line that sets forth the amount that is being levied against real property in the 
2.7 	county as a result of unfunded mandates imposed on the county and subject to this section.
2.8 	Existing state-imposed mandates that are in place on January 1, 2009, but have either 
2.9 	no funding or insufficient supporting funding may be considered for inclusion as a special 
2.10 	levy, upon submission by a county or a group of counties acting jointly, to the house of 
2.11 	representatives and senate committees with jurisdiction over finance. If the committees 
2.12 	fail to act on the requests by March 1 of the levy year, any county may claim the required 
2.13 	funding as a special levy outside of any existing levy limits.
2.14 	The proposed property tax notice must include a line that sets forth the dollar amount 
2.15 	attributable to action taken by the county board consistent with this section.

2.16 	Sec. 4. MAINTENANCE OF EFFORT AND MATCHING REQUIREMENTS.
 2.17 	A state-imposed maintenance of effort or matching dollar requirement identified 
2.18 	as burdensome by a county may be adjusted back to the amount from the initial year of 
2.19 	imposition or the county may choose to adjust the amount with a comparable reduction to 
2.20 	that which the county as a whole is taking as a result of state reductions to county dollars, 
2.21 	if the county gives written notice to the organization and includes a line on the proposed 
2.22 	property tax notice for 2010 or 2011 indicating the amount of reduction attributable to the 
2.23 	decision. For purposes of this section, "burdensome" means any matching requirements 
2.24 	that are automatically established without regard to actual costs, clients served, or 
2.25 	effectiveness of services provided.