DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 703 Reengrossed 2022 Regular Session Gregory Miller
Abstract: Provides for the exclusive venue for disputes regarding disaster repair contracts, nullifies
any contrary venue provisions, and permits the rescission of such contracts within 10 days
of entering the contract.
Proposed law provides the exclusive venue for any proceeding involving a dispute over a disaster
repair contract shall be the parish where the residence is located. If the property is situated in more
than one parish, the action may be brought in any parish where the property is situated.
Proposed law further provides that any provision, clause, covenant, or agreement contained in,
collateral to, or affecting a disaster repair contract following a natural disaster which purports to
require any proceeding involving a dispute over repairs to be brought in a venue other than the parish
provided in proposed law is contrary to the public policy of this state and is null, void, and
unenforceable.
Proposed law provides that the owner of residential property who enters into a disaster repair
contract may cancel the contract or subcontract within 10 days of entering into the contract or
subcontract.
Proposed law further provides that if a homeowner elects to cancel a contract or subcontract, he may
do so by hand-delivering notice thereof to the contractor or by mailing notice by U.S. mail to the
contractor at his last known address, or to his agent for service of process.
Proposed law provides that cancellation made pursuant to proposed law shall be without penalty and
all payments made by the homeowner before cancellation shall be refunded promptly. Further
provides that the contractor shall be entitled to payment for the cost of work performed and materials
ordered or delivered prior to cancellation, along with reasonable overhead.
Proposed law provides that the right to cancel a contract shall expire at the expiration of the disaster
or emergency declaration or one year from the date of the issuance of the disaster or emergency
declaration, whichever occurs first.
Proposed law shall not apply to material suppliers or materialmen for sales to the owner of the
affected residential property or deliveries to the affected residential property of materials ordered by
a contractor or subcontractor even if the repair contract is cancelled.
Proposed law shall not affect proper venue for an action on an open account, promissory note, or contract for sales of materials by a material supplier or materialman to the owner of the residential
property.
Proposed law shall not affect the rights of any party provided in present law Private Works Act and
provisions regarding claims on open accounts.
Proposed law defines "disaster repair contract" as a contract or subcontract entered into during the
six month period following a gubernatorially declared disaster or emergency following a natural
disaster for repairs to a residential property affected by the natural disaster.
(Adds R.S. 9:2784.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and Procedure to the
original bill:
1. Provide for bringing a dispute in a venue, rather than a forum or jurisdiction.
2. Provide for consistent use of the phrase "federally declared state of emergency following
a natural disaster".
3. Allow for payment of the cost of work performed and material ordered or delivered prior
to cancellation, along with reasonable overhead.
4. Create exceptions applicable to materialmen.
5. Create an exception for the rights of any party provided by the Private Works Act and the
provision for claims on open accounts.
The House Floor Amendments to the engrossed bill:
1. Provide that proposed law apply to contracts or subcontracts entered into during the six
month period following a gubernatorially declared disaster or emergency following a
natural disaster for repairs to a residential property affected by the natural disaster.
2. Provide for the expiration of the right to cancel a contract.