MS HB95

Prohibits contractors, subcontractors, and their agents from knowingly failing to apply construction contract payments to settle claims for materials and labor.

Establishes criminal penalties for misapplication of $1,000 or less: fines of $100-$500 and/or imprisonment of 90 days to 6 months.

For misapplication exceeding $1,000, imposes fines of $100-$500 and/or 90 days to 6 months imprisonment per $1,000 misapplied, with aggregate imprisonment capped at 5 years.

Requires violators to reimburse the court with misapplied funds plus legal costs and clerk fees, which are transferred to the affected party.

Brings forward existing sections 31-5-25, 31-5-27, and 31-5-31 regarding contractor payment timelines, subcontractor disbursement requirements, and equipment creditor notification duties; effective July 1, 2013.