MS HB1652

Municipalities and counties must return unexpended local improvement project funds disbursed under Chapter 102, Laws of 2021 within 30 days if no memorandum of understanding was executed or if funds remain unspent after 3 years from the MOU execution date.

Any unexpended interest earned on funds disbursed under the specified appropriation authorities must be returned to the Department of Finance and Administration within 30 days of the act's effective date.

Returned funds and interest will be transferred to the Capital Expense Fund (Fund No. 6499C00000) as unobligated funds by the State Treasurer and State Fiscal Officer.

If a county or municipality fails to return required funds, the State Auditor will issue a certificate of noncompliance, triggering a 10% withholding of sales tax allocations and payments under Section 27-65-75 until the debt is satisfied.

The Department of Finance and Administration may grant one 6-month extension to the 3-year deadline for project completion upon written request from the entity.