Michigan Compiled Laws

Mich. Comp. Laws § 21.234 (2026)

Definitions; S.

✓ current as of July 2026
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STATE DISBURSEMENTS TO LOCAL UNITS OF GOVERNMENT


Act 101 of 1979


21.234 Definitions; S.

Sec. 4.

    (1) "Service" means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government. The provision of a benefit for, or the protection of, public employees of a local unit of government is not a program.

    (2) "State agency" means a state department, bureau, division, section, board, commission, trustee, authority, or officer which is created by the state constitution of 1963, by statute, or by state agency action, and which has the authority to promulgate rules pursuant to Act No. 306 of the Public Acts of 1969, as amended, being sections 24.201 to 24.315 of the Michigan Compiled Laws. State agency does not include an agency in the legislative or judicial branch of state government, an agency having direct control over an institution of higher education, or the state civil service commission.

    (3) "State financed proportion of the necessary cost of an existing activity or service required of local units of government by existing law" means the percentage of necessary costs specifically provided for an activity or service required of local units of government by existing law and financed by the state on December 23, 1978. For purposes of this definition, necessary costs shall not include costs required of local units of government by an existing law which do not exceed a de minimus cost and costs imposed by existing law on a local unit of government which are recoverable from a federal or state categorical aid program, or other financial aid.

    (4) "State law" means a state statute or state agency rule which is not existing law.

    (5) "State requirement" means a state law which requires a new activity or service or an increased level of activity or service beyond that required of a local unit of government by an existing law. State requirement does not include any of the following:

    (a) A requirement imposed on a local unit of government by a state statute or an amendment to the state constitution of 1963 adopted pursuant to an initiative petition, or by a state law or rule enacted or promulgated to implement such a statute or constitutional amendment.

    (b) A requirement imposed on a local unit of government by a state statute or an amendment to the state constitution of 1963, enacted or adopted pursuant to a proposal placed on the ballot by the legislature, and approved by the voters, or by a state law or rule enacted or promulgated to implement such a statute or constitutional amendment.

    (c) A court requirement.

    (d) A due process requirement.

    (e) A federal requirement.

    (f) An implied federal requirement.

    (g) A requirement of a state law which applies to a larger class of persons or corporations and does not apply principally or exclusively to a local unit or units of government.

    (h) A requirement of a state law which does not require a local unit of government to perform an activity or service but allows a local unit of government to do so as an option, and by opting to perform such an activity or service, the local unit of government shall comply with certain minimum standards, requirements, or guidelines.

    (i) A requirement of a state law which changes the level of requirements, standards, or guidelines of an activity or service that is not required of a local unit of government by existing law or state law, but that is provided at the option of the local unit of government.

    (j) A requirement of a state law enacted pursuant to section 18 of article 6 of the state constitution of 1963.

History: 1979, Act 101, Imd. Eff. Aug. 3, 1979

Notes of Decisions
Cited in 15 cases, 1938–2016 · leading case: Adair v. State, 680 N.W.2d 386 (Mich. 2004).
Adair v. State, 680 N.W.2d 386 (Mich. 2004). · cites it 6× “§ 21.234(5) explains what the POUM provision excludes: (a) A requirement imposed on a local unit of government by a state statute or an amendment to the state constitution of 1963 adopted pursuant to an initiative petition, or by a state law or rule enacted or promulgated to…”
Oakland Cnty. v. State of Mich., 566 N.W.2d 616 (Mich. 1997). · cites it 12× “MCL 21.234; MSA 5.3194(604). Section 5 outlines the Legislature’s responsibility to appropriate monies for “the necessary costs of each state requirement.”
Schmidt v. Dep't of Educ., 490 N.W.2d 584 (Mich. 1992). · cites it 4× “MCL 21.234(1); MSA 5.3194(604)(1) provides: "Service" means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government.”
Adair v. State of Michigan, 894 N.W.2d 665 (Mich. Ct. App. 2016). · cites it 4× “This Court declined to address the constitutionality of the definition of the term “service” found in MCL 21.234(1), however, because the teacher evaluation and tenure processes are not programs for purposes of MCL 21.”
Jud. Attorneys Ass'n v. State, 597 N.W.2d 113 (Mich. 1999). · cites it 3× “] "Service" means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government.”
Adair v. State, 302 Mich. App. 305 (Mich. Ct. App. 2013). · cites it 6× “233; MCL 21.234; Owczarek, supra. Included in these provisions is the definition of the term “activity,” which the Legislature has defined as “a specific and identifiable administrative action of a local unit of government.”
Mayor of Detroit v. State, 579 N.W.2d 378 (Mich. Ct. App. 1998). · cites it 2× “§ 21.234(1); M.S.A. § 5.3194(604)(1).] If an "activity or service" is defined too narrowly, any minute programmatic change might appear to be a "new" activity or service requiring state appropriation of the entire cost.”
City of Ann Arbor v. Michigan, 347 N.W.2d 10 (Mich. Ct. App. 1984). · cites it 4× “Under MCL 21.234(4); MSA 5.3194(604)(4), which implements this constitutional provision, however, "state law" is defined as "a state statute or state agency rule".”
Durant v. Dep't of Educ., 342 N.W.2d 591 (Mich. Ct. App. 1983). “MCL 21.234; MSA 5.3194(604). Furthermore, to interpret the term "state law” to include the constitution would be inconsistent with the plain language of § 29 and with the intent behind those who ratified the amendment.”
Berrien Cnty. v. Michigan, 357 N.W.2d 764 (Mich. Ct. App. 1984). · cites it 3× “In this connection, the case sub judice involves the questions of whether Medicaid funding through MOE payments by the county amounts to a reduction of state financing or, alternatively, an increase in an existing state-mandated activity within the meaning of the Headlee…”
Owczarek v. State, 742 N.W.2d 380 (Mich. Ct. App. 2007). · cites it 4× “And according to MCL 21.234(1), “[s]ervice” means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government.”
Mathews v. Life Ins. Co., 279 N.W. 858 (Mich. 1938). “§21.234 et seq.), and Act No. 67, Pub. Acts 1935 (Comp.”
— Mich. Comp. Laws § 21.234(1) — 8 cases
Schmidt v. Dep't of Educ., 490 N.W.2d 584 (Mich. 1992). “MCL 21.234(1); MSA 5.3194(604)(1) provides: "Service" means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government.”
Adair v. State of Michigan, 894 N.W.2d 665 (Mich. Ct. App. 2016). “This Court declined to address the constitutionality of the definition of the term “service” found in MCL 21.234(1), however, because the teacher evaluation and tenure processes are not programs for purposes of MCL 21.”
Jud. Attorneys Ass'n v. State, 597 N.W.2d 113 (Mich. 1999). “] "Service" means a specific and identifiable program of a local unit of government which is available to the general public or is provided for the citizens of the local unit of government.”
Oakland Cnty. v. State of Mich., 566 N.W.2d 616 (Mich. 1997). “MCL 21.234; MSA 5.3194(604). Section 5 outlines the Legislature’s responsibility to appropriate monies for “the necessary costs of each state requirement.”
Adair v. State, 302 Mich. App. 305 (Mich. Ct. App. 2013). “233; MCL 21.234; Owczarek, supra. Included in these provisions is the definition of the term “activity,” which the Legislature has defined as “a specific and identifiable administrative action of a local unit of government.”
— Mich. Comp. Laws § 21.234(3) — 1 case
Oakland Cnty. v. State of Mich., 566 N.W.2d 616 (Mich. 1997). “MCL 21.234; MSA 5.3194(604). Section 5 outlines the Legislature’s responsibility to appropriate monies for “the necessary costs of each state requirement.”
— Mich. Comp. Laws § 21.234(4) — 2 cases
City of Ann Arbor v. Michigan, 347 N.W.2d 10 (Mich. Ct. App. 1984). “Under MCL 21.234(4); MSA 5.3194(604)(4), which implements this constitutional provision, however, "state law" is defined as "a state statute or state agency rule".”
Berrien Cnty. v. Michigan, 357 N.W.2d 764 (Mich. Ct. App. 1984). “In this connection, the case sub judice involves the questions of whether Medicaid funding through MOE payments by the county amounts to a reduction of state financing or, alternatively, an increase in an existing state-mandated activity within the meaning of the Headlee…”
— Mich. Comp. Laws § 21.234(5) — 3 cases
Adair v. State, 680 N.W.2d 386 (Mich. 2004). “§ 21.234(5) explains what the POUM provision excludes: (a) A requirement imposed on a local unit of government by a state statute or an amendment to the state constitution of 1963 adopted pursuant to an initiative petition, or by a state law or rule enacted or promulgated to…”
Oakland Cnty. v. State of Mich., 566 N.W.2d 616 (Mich. 1997). “MCL 21.234; MSA 5.3194(604). Section 5 outlines the Legislature’s responsibility to appropriate monies for “the necessary costs of each state requirement.”
— Mich. Comp. Laws § 21.234(5)(c) — 1 case
Oakland Cnty. v. State of Mich., 566 N.W.2d 616 (Mich. 1997). “MCL 21.234; MSA 5.3194(604). Section 5 outlines the Legislature’s responsibility to appropriate monies for “the necessary costs of each state requirement.”
— Mich. Comp. Laws § 21.234(5)(h) — 4 cases
Adair v. State, 680 N.W.2d 386 (Mich. 2004). “§ 21.234(5) explains what the POUM provision excludes: (a) A requirement imposed on a local unit of government by a state statute or an amendment to the state constitution of 1963 adopted pursuant to an initiative petition, or by a state law or rule enacted or promulgated to…”
City of Ann Arbor v. Michigan, 347 N.W.2d 10 (Mich. Ct. App. 1984). “Under MCL 21.234(4); MSA 5.3194(604)(4), which implements this constitutional provision, however, "state law" is defined as "a state statute or state agency rule".”
Berrien Cnty. v. Michigan, 357 N.W.2d 764 (Mich. Ct. App. 1984). “In this connection, the case sub judice involves the questions of whether Medicaid funding through MOE payments by the county amounts to a reduction of state financing or, alternatively, an increase in an existing state-mandated activity within the meaning of the Headlee…”
Kramer v. City of Dearborn Heights, 496 N.W.2d 301 (Mich. Ct. App. 1993).
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