MS HB1245

Amends Section 27-67-35 to exclude grant funds and loan funds received by municipalities from the calculation of average annual expenditures used to determine eligibility for state infrastructure assistance funds.

Maintains the special fund in the State Treasury used to assist municipalities with costs for road, bridge, water, and sewer infrastructure improvements, distributed semiannually in January and July.

Preserves the allocation formula for municipal funds: $3,000,000 distributed equally to all municipalities, with remaining funds split between population-based and sales tax revenue-based distributions.

Clarifies that bond proceeds continue to be excluded from base expenditure calculations, and adds new exclusion for grant and loan fund expenditures when determining municipalities' required spending levels.

Takes effect upon passage.