Georgia 2025-2026 Regular Session

Georgia Senate Bill SB201 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		25 LC 46 1228S
2		-	Senate Bill 201
3		-	By: Senators Walker III of the 20th, Goodman of the 8th, Hodges of the 3rd, Tillery of the
4		-	19th, Watson of the 11th and others
5		-	AS PASSED
	2	+	The House Committee on Agriculture and Consumer Affairs offers the following
	3	+	substitute to SB 201:
6	4		A BILL TO BE ENTITLED
7	5		AN ACT
8		-	To amend Code Section 10-1-393 of the Official Code of Georgia Annotated, relating to
9		-	1
	6	+	To amend Code Section 10-1-393 of the Official Code of Georgia Annotated, relating to1
10	7		unfair or deceptive practices in consumer transactions unlawful and examples, so as to2
11	8		provide increased consumer protection for homeowners entering into contracts with3
12	9		contractors following natural disasters; to provide for certain contractual requirements; to4
13	10		provide for notice language; to amend Code Section 33-6-5 of the Official Code of Georgia5
14	11		Annotated, relating to unfair methods of competition and unfair or deceptive acts or6
15	12		practices, so as to prohibit the assignment of benefits in certain circumstances; to provide for7
16	13		definitions; to provide for related matters; to provide for legislative findings; to provide for8
17	14		effective dates and applicability; to repeal conflicting laws; and for other purposes.9
18	15		BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10
19	16		SECTION 1.11
20	17		The General Assembly finds that:12
21	18		(1) Following natural disasters, homeowners often need for repairs to be completed to their13
22	19		homes in an expeditious manner;14
23	20		(2) Due to such time pressures, homeowners may enter into contracts with contractors15
24	21		much more quickly than such homeowners typically would;16
25		-	S. B. 201
	22	+	S. B. 201 (SUB)
26	23		- 1 - 25 LC 46 1228S
27		-	(3) Many homeowners believe that assigning their insurance proceeds to contractors who
28		-	17
	24	+	(3) Many homeowners believe that assigning their insurance proceeds to contractors who17
29	25		contract to work on their homes will expedite the repairs of such homes;18
30	26		(4) Such homeowners may not realize that some contractors will accept the assigned19
31	27		insurance proceeds and then fail to expeditiously perform the required work or perform 20
32	28		the work in a substandard manner;21
33	29		(5) There is a need in this state to provide greater protection for homeowners following22
34	30		natural disasters to ensure that contracted work on their homes is performed in an23
35	31		expeditious and professional manner; and24
36	32		(6) There is also a need to specifically prohibit the assignment of insurance proceeds to25
37	33		contractors for a period of one year following the occurrence of a natural disaster.26
38	34		SECTION 2.27
39	35		Code Section 10-1-393 of the Official Code of Georgia Annotated, relating to unfair or28
40	36		deceptive practices in consumer transactions unlawful and examples, is amended in29
41	37		subsection (b) by striking "and" at the end of paragraph (34), by replacing the period at the30
42	38		end of paragraph (35) with "; and", and by adding a new paragraph to read as follows:31
43		-	"(36)(A) With respect to any contractor entering into a contract with a homeowner
44		-	32
	39	+	"(36)(A) With respect to any contractor entering into a contract with a homeowner32
45	40		within one year of a natural disaster for the provision of services for the repair,33
46	41		replacement, or mitigation of damage of or to the homeowner's home caused by such34
47	42		disaster:35
48	43		(i) Failing to substantially commence work on the contracted services within one year36
49	44		of the execution of such contract;37
50	45		(ii) Completing all or a portion of the agreed upon services in a substandard manner;38
51	46		(iii) Entering into a contract with the homeowner whereby the homeowner assigned39
52	47		insurance proceeds to the contractor;40
53	48		(iv) Completing services in a manner inconsistent with the state minimum standard41
54	49		codes or accredited industry standards; or42
55		-	S. B. 201
	50	+	S. B. 201 (SUB)
56	51		- 2 - 25 LC 46 1228S
57	52		(v) Failing to comply with subparagraph (B) of this paragraph.43
58	53		(B) Any contractor entering into a contract with a homeowner within one year of a44
59	54		natural disaster for the provision of services for the repair, replacement, or mitigation45
60	55		of damage of or to the homeowner's home caused by such disaster shall:46
61	56		(i) Accept the cancellation of the contract by the homeowner prior to midnight on the47
62	57		fifth business day after such homeowner has received written notice from the insurer48
63	58		that all or any part of the claim or contract related to the natural disaster is not a49
64	59		covered loss under the homeowner's insurance policy. Cancellation shall be50
65	60		evidenced by the homeowner giving written notice of cancellation to the contractor51
66	61		at the address stated in the contract. Notice of cancellation, if given by mail, shall be52
67	62		effective upon deposit into the United States mail, postage prepaid and properly53
68	63		addressed to the contractor. Notice of cancellation need not take a particular form and54
69	64		shall be sufficient if it indicates, by any form of written expression, the intention of55
70	65		the homeowner not to be bound by the contract; and56
71	66		(ii) Before entering a contract as provided in this subparagraph:57
72	67		(I) Furnish the homeowner with a statement in boldface type of a minimum size of58
73	68		ten points in substantially the following form:59
74	69		'You may cancel this contract at any time before midnight on the fifth business day60
75	70		after you have received written notification from your insurer that all or any part of61
76	71		the claim or contract is not a covered loss under the insurance policy. This right to62
77	72		cancel is in addition to any other rights of cancellation which may be found in state63
78	73		or federal law or regulation. See the attached notice of cancellation form for an64
79	74		explanation of this right'; and65
80	75		(II) Furnish each homeowner with a fully completed form in duplicate, captioned66
81	76		'NOTICE OF CANCELLATION,' which shall be attached to the contract but easily67
82	77		detachable, and which shall contain in boldface type of a minimum size of ten68
83	78		points the following statement:69
84		-	S. B. 201
	79	+	S. B. 201 (SUB)
85	80		- 3 - 25 LC 46 1228S
86	81		'NOTICE OF CANCELLATION70
87	82		If you are notified by your insurer that all or any part of the claim or contract is not71
88	83		a covered loss under the insurance policy, you may cancel the contract by mailing72
89	84		or delivering a signed and dated copy of this cancellation notice or any other written73
90	85		notice to (name of contractor) at 74
91	86		(address of contractor's place of business)75
92	87		at any time prior to midnight on the fifth business day after you have received such76
93	88		notice from your insurer.77
94	89		I HEREBY CANCEL THIS TRANSACTION78
95	90		79
96	91		(date)80
97	92		81
98	93		(insured's signature).'82
99	94		(C) Notwithstanding other provisions of law in this paragraph, if the contractor has83
100	95		performed any emergency services, acknowledged by the homeowner in writing to be84
101	96		necessary to prevent immediate damage to the premises, the contractor shall be entitled85
102	97		to collect the reasonable amount due for the emergency services at the time they are86
103	98		rendered. Any provision in a contract provided for in this paragraph that requires the87
104	99		payment of any fee for any services except emergency services shall not be enforceable88
105	100		against any homeowner who has canceled a contract under this paragraph.89
106	101		(D) As used in this paragraph, the term 'natural disaster' means a flood, tornado,90
107	102		hurricane, earthquake, or other occurrence for which a state of emergency is proclaimed91
108	103		by the Governor."92
109	104		SECTION 3.93
110	105		Code Section 33-6-5 of the Official Code of Georgia Annotated, relating to unfair methods94
111	106		of competition and unfair or deceptive acts or practices, is amended by striking "and" at the95
112		-	S. B. 201
	107	+	S. B. 201 (SUB)
113	108		- 4 - 25 LC 46 1228S
114		-	end of paragraph (13), striking the period at the end of paragraph (14) and inserting "; and"
115		-	96
	109	+	end of paragraph (13), striking the period at the end of paragraph (14) and inserting "; and"96
116	110		in lieu thereof, and adding a new paragraph to read as follows:97
117		-	"(15)(A) No insurer shall sell homeowner's insurance policies that allow for the
118		-	98
	111	+	"(15)(A) No insurer shall sell homeowner's insurance policies that allow for the98
119	112		assignment of proceeds to a contractor within one year of a natural disaster which99
120	113		causes damage to the insured's residential property.100
121	114		(B) As used in this paragraph, the term:101
122	115		(i) 'Natural disaster' means a flood, tornado, hurricane, earthquake, or other102
123	116		occurrence for which a state of emergency is proclaimed by the Governor.103
124	117		(ii) 'Residential property' means real property used or occupied as the primary104
125	118		residence of a natural person."105
126	119		SECTION 4.106
127	120		Section 3 of this Act shall become effective on January 1, 2026, and shall apply to all107
128	121		policies issued, delivered, issued for delivery, or renewed in this state on or after such date.108
129	122		The remainder of this Act shall become effective on July 1, 2025. 109
130	123		SECTION 5. 110
131	124		All laws and parts of laws in conflict with this Act are repealed.111
132		-	S. B. 201
	125	+	S. B. 201 (SUB)
133	126		- 5 -