Local governments and school districts exempted from state mandates unless funding is provided to comply with the mandate, implementation language provided, contested case hearings authorized, report required, and constitutional amendment proposed.

This bill proposes a constitutional amendment that would exempt Minnesota local governments and school districts from complying with state mandates unless the state provides funding to cover the costs of compliance. The bill defines a state mandate as any requirement that affects daily operations, changes resource allocation, or alters spending priorities for these entities. If passed, it would allow local governments to formally refuse compliance through a resolution if they believe funding is insufficient, while also creating a process for agencies to contest these decisions through hearings. The amendment would be submitted to voters at the 2026 general election and would take effect on January 1, 2027, if approved.