Official text prohibited actmental stateif conditionpenaltylegal term
Any person who receives money for the purpose of obtaining or paying for services, labor, materials or equipment and fails to apply such money for such purpose by either failing to complete the improvements for which funds were provided or failing to pay for services, labor, materials or equipment provided incident to such construction, and wrongfully diverts the funds to a use other than that for which the funds were received, shall be guilty of a public offense and shall be punishable by a fine not exceeding ten thousand dollars ($10,000), or by imprisonment in a county jail not exceeding one year, or by imprisonment pursuant to subdivision (h) of Section 1170, or by both that fine and that imprisonment if the amount diverted is in excess of two thousand three hundred fifty dollars ($2,350). If the amount diverted is less than or equal to two thousand three hundred fifty dollars ($2,350), the person shall be guilty of a .
History: Amended by Stats. 2011, Ch. 15, Sec. 367. (AB 109) Effective April 4, 2011. Operative October 1, 2011, by Sec. 636 of Ch. 15, as amended by Stats. 2011, Ch. 39, Sec. 68.
Simplified explanation
Receiving money for construction services, labor, or materials and willfully diverting it to another use is punishable by up to one year in county jail or as a felony, and a $10,000 fine, if over $2,350; otherwise a misdemeanor.