MS SB2894

Unexpended funds from local improvement projects (appropriated under Chapter 102, Laws of 2021) must be returned to the Department of Finance and Administration within 30 days if no memorandum of understanding has been executed, or if funds remain unspent 3 years after the MOU execution date (with one possible 6-month extension).

All unexpended interest earned on funds disbursed for local improvement projects under specified statutes must be returned to the Department of Finance and Administration within 30 days of the act's effective date.

Returned funds will be transferred to the Capital Expense Fund (Fund No. 6499C00000) as unobligated funds.

Counties or municipalities that fail to return required funds will face enforcement through the State Auditor, who may issue a certificate of noncompliance triggering a 10% withholding of their sales tax allocations under Section 27-65-75 until the debt is recovered.

The withholding mechanism applies to both municipal sales tax distributions (18.5% allocation) and county State Aid Road Fund allocations until the State Fiscal Officer certifies full repayment to the Capital Expense Fund.