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

HB 1652 requires Mississippi municipalities and counties to return leftover funds and earned interest from certain local improvement projects to the state's Capital Expense Fund. It sets deadlines: unspent funds must be returned within 30 days if no project agreement exists, or within three years (with a possible six-month extension) after an agreement is signed. If funds aren't returned, the state can withhold 10% of future sales tax payments to the entity until the funds are recovered. This bill updates existing state laws to enforce these return requirements and recovery procedures for funds originally allocated under Chapter 102, Laws of 2021.