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:
<ins>(1) 'Business to business transaction' means a financial exchange of goods, services, or
information for payment between two or more businesses.
</ins> <del>(1)(2)</del> '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.
<del>(2)(3)</del> '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.
<del>(3)(4)</del> '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.
<del>(4)(5)</del> '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. <del>'Owner'
</del> <ins>The term 'owner'</ins> 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.
<del>(5)(6)</del> '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.
<del>(6)(7)</del> 'Real property' means the real estate that is improved, including lands, leaseholds,
tenements, and improvements placed on the real property.
<del>(7)(8)</del> 'Receipt' means actual receipt of cash or funds in the contractor's or subcontractor's
bank account.
<del>(8)(9)</del> '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:
<ins>"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."
</ins> SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.