HB 676: Property; fine for any frivolous mechanic lien filed; provide

Under current Georgia law, contractors and material suppliers can file a mechanic's lien (a legal claim against a property) when they haven't been paid for work or materials. This bill adds a new section to that law targeting liens filed without a legitimate basis. Specifically, it says any mechanic's lien that is filed without substantial justification, not in good faith, or with malice or a wrongful purpose, using definitions already found in Georgia's law on frivolous litigation (O.C.G.A. § 51-7-80), would trigger a $1,500 fine per lien. That fine would come on top of any attorney's fees or court costs the filer might already owe. The law would take effect as soon as the Governor signs it, or automatically if it becomes law without his signature.

• Adds a new Code section (44-14-361.6) creating a $1,500 fine for each mechanic's lien filed that lacks substantial justification, isn't made in good faith, or is filed with malice or a wrongful purpose.
• Ties the definitions of bad faith, malice, and wrongful purpose to an existing Georgia statute (O.C.G.A. § 51-7-80) rather than creating new definitions.
• Makes the $1,500 fine additional to, not a replacement for, any attorney's fees or court costs already owed.
• Sets the effective date as the moment the Governor signs the bill or it otherwise becomes law without his signature.

Contractors, subcontractors, and material suppliers who file mechanic's liens against Georgia properties; property owners who are targets of such liens; and attorneys and courts handling lien disputes, since the fine adds a new financial consequence to frivolous filings.

Property owners facing baseless liens would gain a specific financial penalty they can point to beyond existing legal fees, which could discourage contractors or suppliers from filing liens without a real basis. Those who do file frivolous liens would face an added $1,500 cost per lien.

• Section 1 adds new Code Section 44-14-361.6, creating the $1,500 per-lien fine for frivolous mechanic's liens filed under O.C.G.A. § 44-14-361.
• The fine applies when a lien is filed without substantial justification, not in good faith, or with malice or wrongful purpose, using definitions from O.C.G.A. § 51-7-80.
• The $1,500 fine is imposed in addition to any attorney's fees or court costs already recoverable.
• Section 2 sets the effective date as the date of the Governor's approval or the date the bill becomes law without approval.
• Section 3 repeals any conflicting 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 contractors
• frivolous lawsuits
• property owners' rights