Cal. Civ. Code § 89-7-46
Landlord's failure to pay utilities pursuant to lease contract or rental agreement; penalties; exceptions.
Operative Text
(1) No person who has received money or payment in accordance with a lease contract or rental agreement to pay utility services shall knowingly, willfully and unlawfully: (a) Fail to apply the money or payment as necessary to satisfy the amount owed for the utility services within sixty (60) days of the person’s receipt of the bill for utility services. (b) Use or cause an agent or employee to use any deception, false pretense, or false promise in the failure to apply the money or payment as necessary to satisfy the amount owed for the utility services. (2) (a) When the misappropriation or taking amounts to a value of Twenty-five Thousand Dollars ($25,000.00) or more, the offender, upon conviction, shall be imprisoned for not more than twenty (20) years, fined not more than Fifty Thousand Dollars ($50,000.00), or both. (b) When the misappropriation or taking amounts to a value of Five Thousand Dollars ($5,000.00) or more, but less than a value of Twenty-five Thousand Dollars ($25,000.00), the offender, upon conviction, shall be imprisoned for not more than ten (10) years, fined not more than Ten Thousand Dollars ($10,000.00), or both. (c) When the misappropriation or taking amounts to a value of One Thousand Dollars ($1,000.00) or more, but less than a value of Five Thousand Dollars ($5,000.00), the offender, upon conviction, shall be imprisoned for not more than five (5) years, fined not more than Three Thousand Dollars ($3,000.00), or both. (d) (i) When the misappropriation or taking amounts to less than a value of One Thousand Dollars ($1,000.00), the offender, upon conviction, shall be imprisoned for not more than six (6) months in the county jail, fined not more than One Thousand Dollars ($1,000.00), or both. (ii) If the offender convicted under subparagraph (i) of this paragraph has been convicted two (2) or more times previously, upon any subsequent conviction, the offender shall be imprisoned for not more than two (2) years, fined not more than Two Thousand Dollars ($2,000.00), or both. (e) In addition to the penalties provided in paragraphs (a) through (d) of this subsection, a person convicted under the provisions of this section shall be ordered to make full restitution to the victim and any other person who has suffered a financial loss as a result of the offense pursuant to Chapter 37, Title 99, Mississippi Code of 1972. (3) The provisions of this section shall not apply if the person who has received money or payment for utility services is unable to pay the bill for utility services because either: (a) The tenant or lessee has failed to timely pay sufficient funds to satisfy the specific amount owed in the bill for utility services. (b) The reason for the delay in receipt of either the bill or payment for utility services is due to an administrative, clerical, or technical error or omission on behalf of the company providing utility services. (4) For purposes of this section: (a) “Person” means a natural or juridical person, including, but not limited to, a sole proprietorship, corporation, company, limited liability company, partnership, limited liability partnership, trust, incorporated or unincorporated association, or any other individual or entity. “Person” shall also include any representative, director, trustee, agent, or officer of a juridical person who is authorized and responsible for making payments for utility services. (b) “Utility services” means any water, electricity, gas, heat, or sewer services, whether privately, municipally, cooperatively, or investor-owned. History Laws, 2026, ch. 416, § 1, eff from and after passage (approved March 25, 2026).
Mississippi Code Ann. § 89-7-46 establishes that any person—including landlords, property managers, or their agents—who collects money under a lease or rental agreement specifically to cover utility services is legally required to apply those funds toward the utility bill within 60 days of receiving it. Knowingly failing to do so, or using deception to avoid paying, is treated as a criminal offense. Penalties scale with the dollar amount misappropriated, ranging from fines and short jail terms for amounts under $1,000 up to 20 years imprisonment and a $50,000 fine for misappropriations of $25,000 or more, with mandatory restitution in all cases. The law does not apply when the tenant failed to pay sufficient funds on time, or when a delay is caused by an administrative or technical error from the utility company itself.
Plain English — not legal advice.
Under Miss. Code Ann. § 89-7-46, operators who collect utility payments from tenants as part of a lease arrangement are expected to apply those funds to the corresponding utility bills within 60 days of receiving each bill. Compliant property managers maintain clear records showing that utility payments collected are tracked separately and disbursed promptly, and they avoid any conduct—by themselves or through employees—that could be characterized as deceptive in handling those funds. Because violations can result in criminal prosecution and mandatory restitution, operators generally establish internal controls and documentation practices that create a clear audit trail for every utility payment received and remitted.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 89-7-46 of the Mississippi Code gives tenants a basis to raise concerns when a landlord or property manager who collected utility payments under a lease fails to apply those funds to the utility bill, potentially resulting in service disruption or unpaid balances attributed to the tenant. Because this provision carries criminal penalties, tenants who believe funds were misappropriated may report the conduct to local law enforcement or the county district attorney's office, as the statute is enforced through the criminal justice system rather than a housing agency. Tenant-rights organizations in Mississippi can help individuals understand what documentation to gather—such as payment records and utility bills—and what options may be available when this provision appears to have been violated.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated October 30, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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