House Bill 1282

AN ACT TO PROHIBIT A CONTRACTOR FROM DEPOSITING OR CASHING A PAYMENT MADE BY A JOINT CHECK AGREEMENT WITHOUT AUTHORIZATION FROM ALL SIGNEES; TO PROVIDE PENALTIES FOR VIOLATIONS; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) When a contractor enters into a joint check agreement with an owner, laborer, supplier or equipment dealer for materials or equipment furnished or labor performed, the contractor shall not deposit or cash any payment from the owner without authorization from the other signee or signees to the joint check agreement. For the purpose of this section, "joint check agreement" means an agreement between two (2) or more parties which allows one (1) party to pay a balance due by writing a check issued to two (2) or more payees.

(2) A violation of this section is a misdemeanor punishable by a fine of not more than Five Hundred Dollars ($500.00) per violation. A contractor who violates this section shall also be liable for restitution to all signees, court costs and reasonable attorney's fees.

SECTION 2. This act shall take effect and be in force from and after July 1, 2012.