Mississippi House Bill HB1652

Mississippi 2026 Regular Session

• Introduced: 1/19/26
• Refer: 1/19/26
• Engrossed: 2/5/26
• Failed: 2/16/26

Caption

Local Improvement Projects; require return of unexpended funds and earned interest.

Impact

This legislation amends several sections of the Mississippi Code, particularly those concerning how funds are managed and reported by state and local entities. A significant change includes the stipulation that if a municipality or county fails to return the required funds, a certain percentage of subsequent allocation payments from the state can be withheld. This increase in oversight and requirement for timely reporting is aimed at ensuring that public funds are used efficiently and that government entities are held accountable for their spending and project completion timelines.

Summary

House Bill 1652 is designed to require the return of unexpended funds from local improvement projects and the interest earned on those funds. Specifically, the act mandates that any entity that has received funding must return any remaining balance to the Department of Finance and Administration within 30 days of the effective date of the act, provided that there has either been no executed memorandum of understanding for the project or that unexpended funds remain after three years following the agreement's execution. The act outlines a procedure to ensure this compliance and protect the state's financial interests.

Contention

Notable points of contention may arise surrounding the additional regulatory burden this law places on local governments and agencies. While proponents argue it protects state finances and ensures that allocated funds are used for their intended purposes, detractors may voice concerns that the conditions could strain local governments, particularly smaller ones with fewer resources. Some may argue that the recovery mechanism and potential withholding of funds might create undue pressure on municipalities, potentially affecting their financial stability and ability to undertake future projects.