Georgia CommonsHB 1506: Contracts; payment terms for business to business transactions; provide
Introduced version, the latest LegiScan holds · Last action March 9, 2026 · Introduced
The text as LegiScan holds it, read from the PDF the legislature publishes with its margin line numbers, running heads, and page footers removed. Line breaks are joined into paragraphs here; no word is changed.
Underlined words are what the bill adds to current law and struck-through words are what it removes, as the printed bill shows them.
House Bill 1506
By: Representatives Clark of the 108th, Park of the 107th, Kendrick of the 95th, and Adesanya of the 43rd
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 11 of Title 13 of the Official Code of Georgia Annotated, relating to prompt payment, so as to provide for payment terms for business to business transactions; to provide for definitions; to provide for related matters; to repeal conflicting laws; and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 11 of Title 13 of the Official Code of Georgia Annotated, relating to prompt payment, is amended by revising Code Section 13-11-2, relating to definitions, as follows:
"13-11-2.
As used in this chapter, the term:
(1) 'Business to business transaction' means a financial exchange of goods, services, or information for payment between two or more businesses.
(1)(2) 'Contractor' means a person who contracts with an owner to improve real property, to perform construction services, or to perform construction management services for an owner.
(2)(3) 'Improve' means to build, effect, alter, repair, or demolish any improvement upon, connected with, or on or beneath the surface of any real property or to excavate, clear, grade, fill, or landscape any real property or to construct driveways and private roadways or to furnish materials, including trees and shrubbery, for any of such purposes or to perform any labor upon such improvements.
(3)(4) 'Improvement' means all or any part of any building, structure, erection, alteration, demolition, excavation, clearing, grading, filling, or landscaping, including trees and shrubbery, driveways, and roadways, on real property.
(4)(5) 'Owner' means a person who has an interest in the real property improved and for whom an improvement is made and who ordered the improvement to be made. 'Owner' The term 'owner' includes private persons and entities and state, local, or municipal government agencies, instrumentalities, or entities; provided, however, that the provisions of this chapter shall not apply when the owner is a county having a population of less than 10,000 according to the United States decennial census of 1990 or any such future census or when the owner is a municipality having a population of less than 2,500 according to the United States decennial census of 1990 or any such future census. (5)(6) 'Owner's representative' means the architect or engineer in charge of the project for the owner or such other contract representative or officer as designated in the contract documents as the party representing the owner's interest regarding administration and oversight of the project.
(6)(7) 'Real property' means the real estate that is improved, including lands, leaseholds, tenements, and improvements placed on the real property.
(7)(8) 'Receipt' means actual receipt of cash or funds in the contractor's or subcontractor's bank account.
(8)(9) 'Subcontractor' means any person who has contracted to furnish labor or materials to, or has performed labor or supplied materials for, a contractor or another subcontractor in connection with a contract to improve real property. For purposes of this chapter, the term 'subcontractor' shall also include materialmen as defined in Code Section
44-14-360."
SECTION 2.
Said chapter is further amended by adding a new Code section to read as follows:
"13-11-4.1.
In any business to business transaction where a business has performed in accordance with the provisions of a contract, such business shall within 30 days of receipt be paid for any work completed or service provided under the contract."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.