SSHB703 3645 5266
HOUSE SUMMARY OF SENATE AMENDMENTS
HB 703 2022 Regular Session Gregory Miller
CONTRACTS: Provides relative to repair contracts following a natural disaster
Synopsis of Senate Amendments
1.Removes provisions regarding the exclusive venue for disputes over a disaster
repair contract.
2.Removes provisions regarding the expiration of the right to cancel a disaster
repair contract.
3.Provides that a disaster repair contract is one entered into following the initial
declaration of a gubernatorially declared disaster.
4. Provides that a disaster repair contract is one affecting residential properties
located in the emergency area.
5.Provides that proposed law applies to disputes over the contract, rather than
disputes over repairs.
6.Makes technical changes.
Digest of Bill as Finally Passed by Senate
Proposed law 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 the contract to be brought in a venue other
than a venue provided by present 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 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.
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Proposed law defines "disaster repair contract" as a contract or subcontract entered into
during the six month period following the initial declaration of a gubernatorially declared
disaster or emergency following a natural disaster for repairs to a residential property located
in the emergency area and affected by the natural disaster.
(Adds R.S. 9:2784.1)
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