ENROLLED 2022 Regular Session HOUSE BILL NO. 703 BY REPRESENTATIVE GREGORY MILLER 1 AN ACT 2 To enact R.S. 9:2784.1, relative to repair contracts following a natural disaster; to provide 3 for venue for disputes arising from the contract; to provide for nullification of certain 4 terms; to provide for rescission of the contract; to provide for notice; to provide for 5 exceptions; and to provide for related matters. 6 Be it enacted by the Legislature of Louisiana: 7 Section 1. R.S. 9:2784.1 is hereby enacted to read as follows: 8 ยง2784.1. Repair contracts entered into during a state of emergency; venue; 9 rescission 10 A. Notwithstanding any provision of the law to the contrary, any provision, 11 clause, covenant, or agreement contained in, collateral to, or affecting a disaster 12 repair contract which purports to require any proceeding involving a dispute over the 13 contract to be brought in a venue other than a venue provided by law is contrary to 14 the public policy of this state and is null, void, and unenforceable. 15 B.(1) The owner of residential property who enters into a disaster repair 16 contract may cancel the contract within ten days of entering into the contract. 17 (2) If a homeowner elects to cancel a contract pursuant to this Subsection, 18 he may do so by hand-delivering notice thereof to the contractor or by mailing notice 19 by United States mail to the contractor at his last known address, or to his agent for 20 service of process. 21 (3) Cancellation made pursuant to this Subsection shall be without penalty 22 and all payments made by the homeowner before cancellation shall be refunded Page 1 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions. HB NO. 703 ENROLLED 1 promptly. This contractor shall be entitled to payment for the cost of work 2 performed and materials ordered or delivered prior to cancellation, along with 3 reasonable overhead. 4 C.(1) This Section shall not apply to material suppliers or materialmen for 5 sales to the owner of the affected residential property or deliveries to the affected 6 residential property of materials ordered by a contractor or subcontractor even if the 7 repair contract is cancelled pursuant to Subsection B of this Section. 8 (2) This Section shall not affect proper venue for an action on an open 9 account, promissory note, or contract for sales of materials by a material supplier 10 or materialman to the owner of the residential property as provided in Code of Civil 11 Procedure Articles 74.4 and 76.1. 12 D. Nothing in this Section shall affect the rights of any party provided in 13 R.S. 9:4801 et seq. or R.S. 9:2781. 14 E. For purposes of this Section, "disaster repair contract" means a contract 15 or subcontract entered into during the six month period following the initial 16 declaration of a gubernatorially declared disaster or emergency following a natural 17 disaster for repairs to a residential property located in the emergency area and 18 affected by the natural disaster. SPEAKER OF THE HOUSE OF REPRESENTATIVES PRESIDENT OF THE SENATE GOVERNOR OF THE STATE OF LOUISIANA APPROVED: Page 2 of 2 CODING: Words in struck through type are deletions from existing law; words underscored are additions.