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SF 4954

Constitutional Amendment proposal to prohibit unfunded mandates by the state to local governments

2025-2026 Regular Session Introduced by Jeff Howe and 1 co-sponsor

Prohibits the state from imposing unfunded mandates on local governments, requiring full funding for compliance with most new costs unless specific exceptions apply.

Author added Howe
#constitutionalamendments #government-local #government-state
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Bill Summary · SF 4954

Summary of SF 4954 (2025-2026) — Constitutional Amendment to Prohibit Unfunded State Mandates on Local Governments (Minnesota)

Purpose and intent

  • SF 4954 proposes a constitutional amendment to Minnesota Article XII.
  • The core aim is to prohibit the state from imposing requirements on local government units (LGUs) without funding to cover the full anticipated cost of compliance, with certain enumerated exceptions.
  • The measure seeks to protect LGUs from cost-shifting and to shield taxpayers from indirect taxation (e.g., through higher property taxes) by preventing unfunded mandates.

Key provisions

Section 6 — Unfunded Mandates Prohibition (the core standard)

  • Except as provided in Section 7, the legislature cannot pass laws or state agencies cannot adopt rules that require an LGU to establish, expand, modify, or administer a program, service, standard, duty, or responsibility that would necessitate increased expenditures by the LGU unless the legislature appropriates funding to cover the entire anticipated cost of compliance.
  • If a law or rule creates unfunded costs, it is unenforceable against the LGU to the extent of those unfunded costs.
  • LGUs may seek declaratory or injunctive relief for violations.
  • The section is to be liberally construed to prevent cost transfers from the state to LGUs and to protect taxpayers from indirect taxation through unfunded mandates.

Section 7 — Exceptions to the Prohibition

LGUs must comply with laws or rules that meet at least one of the following criteria, regardless of funding appropriations:
- (a) A law defining a criminal offense or criminal procedure, or enforcing criminal law or procedure.
- (b) A law enacted during a declared emergency and adopted by a two-thirds vote of both houses of the Legislature.
- (c) A law or rule required by the federal government to comply with federal law or to qualify for federal money.
- (d) A law, ordinance, or regulation adopted by the LGU itself and approved by the voters.
- (e) A law or rule with an anticipated fiscal impact on an LGU that does not exceed 1% of the LGU’s annual operating budget.

Submission to voters and status

  • Section 2 sets a mandatory statewide referendum to place the amendment before voters in the 2026 general election.
  • The ballot question would read (paraphrased for clarity):
    • “Shall the Minnesota Constitution be amended to prohibit the state from imposing requirements on local government units without appropriating money to cover the cost of compliance, except for criminal requirements, emergencies with a two-thirds legislative vote, federal compliance, voter-approved local actions, and mandates with negligible cost, effective as of January 1, 2027?”
  • Ballot title would be: “State Unfunded Mandates Prohibited.”
  • Effective date: The provision becomes effective the day after final enactment of the amendment (i.e., the amendment would take effect only after statewide adoption).

Who and what is affected

  • Affects all local government units in Minnesota (cities, counties, townships, and possibly special districts) by restricting state-imposed costs without funding.
  • The state government ( Legislature and state agencies) would be constrained from imposing unfunded mandates unless funding is provided to cover full compliance costs, subject to the listed exceptions.
  • The bill delineates specific exemptions, which could allow certain state actions to proceed without tied funding.

Procedural and timeline notes

  • Introduced in the Minnesota Senate as SF 4954 (Lang, Howe as sponsors; Andrew Lang co-sponsor; Jeff Howe added as co-sponsor).
  • Referred to the State and Local Government committee on April 7, 2026.
  • If enacted, the amendment would be submitted to Minnesota voters at the 2026 general election.
  • The measure includes an 1%-of-budget cap on the cost-impact exception, providing a quantifiable threshold for permissible unfunded costs under Section 7(e).

If you’d like, I can provide a side-by-side comparison with current law, or a plain-English FAQ addressing potential scenarios (e.g., how emergencies or federal requirements would be treated).

Compiled from official sources — confirm details with the bill’s official record.

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