HB676: HB676 Property; fine for any frivolous mechanic lien filed; provide

Under current Georgia law, contractors and material suppliers can file mechanic's liens against property when they aren't paid for work or materials (O.C.G.A. § 44-14-361). This bill adds a new penalty for abusing that process. If a lien is filed without substantial justification, in bad faith, or with malice or a wrongful purpose, using definitions already in Georgia's abusive litigation law (O.C.G.A. § 51-7-80), the person who filed it would owe a $1,500 fine for each such lien. That fine would come on top of any attorney's fees or court costs the filer already owes because of the frivolous lien. The bill does not change who can file a lien or the underlying lien process; it only adds a financial penalty for filing one improperly. The law would take effect as soon as the Governor signs it or it otherwise becomes law without his signature.

• Creates a new Georgia Code section, 44-14-361.6, imposing a $1,500 fine for each frivolous mechanic's lien filed against property.
• Defines a frivolous lien as one filed without substantial justification, not in good faith, or made with malice or a wrongful purpose, borrowing definitions from Georgia's abusive litigation law (O.C.G.A. § 51-7-80).
• Makes the $1,500 fine additional to, not a replacement for, any attorney's fees or court costs already owed for the frivolous filing.
• Sets the law to take effect immediately upon the Governor's signature or once it becomes law without his approval.

Contractors, subcontractors, and material suppliers who file mechanic's liens under Georgia law, and property owners who are targeted by liens filed against their homes or buildings without a legitimate basis.

Property owners facing improper liens would gain a financial deterrent against bad-faith filings, since anyone filing a frivolous lien risks a $1,500 penalty per lien plus legal costs. This could discourage contractors from using liens as pressure tactics in payment disputes.

• Section 1 adds new Code Section 44-14-361.6, setting a $1,500 fine per frivolous lien filed under the existing mechanic's lien statute (O.C.G.A. § 44-14-361).
• Section 1 ties the definition of a frivolous lien to terms already defined in Georgia's abusive litigation statute (O.C.G.A. § 51-7-80): lack of substantial justification, bad faith, malice, or wrongful purpose.
• Section 1 makes clear the fine applies in addition to attorney's fees or court costs, not instead of them.
• Section 2 sets the effective date as the date of the Governor's signature or the date the bill becomes law without signature.
• Section 3 repeals any conflicting Georgia laws.

1. 2026-03-23Senate Read Second Time (Senate)
2. 2026-03-20Senate Committee Favorably Reported (Senate)
3. 2026-02-10Senate Read and Referred (Senate)
4. 2026-02-09House Passed/Adopted (House)
5. 2026-02-09House Third Readers (House)
6. 2026-01-28House Committee Favorably Reported (House)
7. 2025-04-04House Withdrawn, Recommitted (House)
8. 2025-03-04House Committee Favorably Reported (House)

• Rob Clifton (R, HD-131)Primary sponsor
• Stan Gunter (R, HD-008)
• Matt Reeves (R, HD-099)
• Marcus Wiedower (R, HD-121)
• Holt Persinger (R, HD-119)
• Matthew Gambill (R, HD-015)
• Ed Setzler (R, SD-037)

1. PassedHouse voteFebruary 9, 2026

   163 yea, 0 nay (3 not voting, 9 absent)

   Passage: House Vote #487

• mechanic's liens
• property law
• construction disputes
• frivolous lawsuits
• fines and penalties