Budget & Taxes (Local Government)

This bill prohibits local governments in Michigan, such as cities and counties, from creating or enforcing taxes and regulations based on carbon emissions, energy consumption, or vehicle miles traveled. It defines these restricted measures broadly to include fees on greenhouse gases, specific fuel types, and mandatory emissions trading programs. If passed, any existing local rules violating these restrictions would become invalid, and local entities would be barred from using public funds to defend such policies in court. The legislation also allows individuals to sue to stop the implementation of these prohibited local measures and grants them the right to recover legal fees if they win the case.

This bill seeks to repeal the Local Financial Stability and Choice Act of 2012, a law that previously set financial rules for local governments in Michigan. By removing the specific sections of the Michigan Compiled Laws associated with that act, the legislation would eliminate those existing financial regulations. Consequently, local municipalities and other local entities would no longer be subject to the oversight and requirements established under the repealed statute. The bill was introduced by Senator Mary Cavanagh and is currently under consideration by the Committee on Local Government.