Changes to Existing Law

44-9-13. Any contractor, subcontractor, or supplier on any improvement of real estate, mines, or public utilities within the purview of this chapter who knowingly uses more than five hundred dollars of the proceeds of any payment made to him on account of such improvement by the owner of such real estate or person having the improvement made, having received or been entrusted with the property of another for the purpose of improvement of real estate, and with the intent to defraud, appropriates that property for any other purpose other than the payment for labor, skill, or materials, and machinery contributed to such improvement while any account for such labor, skill, material, or machinery furnished for such improvement up to the time of such payment remains unpaid and due and owing under the credit terms arranged, for improvement of the real estate for which it was received, is guilty of theft of the proceeds of such payment. It is not a violation of this section to withhold funds from a contractor, subcontractor, or supplier pending the completion and final approval of his work or product. Any person guilty of theft pursuant to this section is subject to the penalties under § 22-30A-17. 18