“State mandate” means any state initiated statutory or executive action or rule, regulation or policy adopted by a state department or agency or a quasi-public department or agency that requires a local government to establish, expand, or modify its activities in a way as to necessitate additional expenditures from local government revenue sources where the expenditures are not otherwise reimbursed in whole. For the purpose of this chapter, a “state mandate” shall also mean any requirement, rule, or dictate by a regulator of a state agency. When state statutory, executive, or regulator actions or rules, regulations or policies are intended to achieve compliance with federal statutes or regulations or court orders, state mandates shall be determined as follows:

(1)  Where the federal statute or regulations or court order is discretionary, the state statutory, executive, or regulator action shall be considered a state mandate for the purposes of § 45-13-7 — § 45-13-10.

(2)  Where the state statutory, executive, or regulator action or rule, regulation or policy exceeds what is required by the federal statute or regulation or court order, only the provisions of the state action which exceed the federal requirements shall be considered a state mandate for the purposes of § 45-13-7 — § 45-13-10.

(3)  Where the state statutory, executive, or regulator action or rule, regulation or policy does not exceed what is required by the federal statute or regulation or court order, the state action shall not be considered a state mandate for the purposes of § 45-13-7 — § 45-13-10.

(4)  Where the cost of a single state mandate does not exceed the sum of five hundred dollars ($500) the state mandate shall not be reimbursable.