---
title: SB 127. Contracts with Small Businesses; automatic renewal provisions; definitions; provide and revise
collection: bills
id: 2025-2026/sb127
cite_as: SB 127, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/sb127
md_url: https://georgiacommons.org/bills/2025-2026/sb127.md
text_url: https://georgiacommons.org/bills/2025-2026/sb127/text
source_url: https://www.legis.ga.gov/legislation/70081
date: 2026-01-12
status: introduced
corpus_version: bills-2026-08-28
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
up: https://georgiacommons.org/bills/2025-2026.md
previous: https://georgiacommons.org/bills/2025-2026/sb126.md
next: https://georgiacommons.org/bills/2025-2026/sb128.md
index: https://georgiacommons.org/bills/index.md
omitted: votes and history
omitted_chars: 254
omitted_url: https://georgiacommons.org/bills/2025-2026/sb127.md?full=1
bill_number: SB 127
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: Senate
bill_type: bill
status_date: 2025-02-10
last_action: Senate Recommitted
sponsors:
  - Timothy Bearden
  - Matt Brass
  - Jason Anavitarte
  - Brian Strickland
  - John Albers
  - Marty Harbin
  - Greg Dolezal
  - Lee Anderson
  - Randy Robertson
text_version: Comm Sub
has_text: true
legiscan_url: https://legiscan.com/GA/bill/SB127/2025
upstream_id: 1964626
summaries_model: claude-sonnet-5
topic_tags:
  - small business protections
  - consumer contracts
  - automatic renewal
  - contract law
---

# SB 127. Contracts with Small Businesses; automatic renewal provisions; definitions; provide and revise

## Text

25 LC 55 0502S
The Senate Committee on Regulated Industries and Utilities offered the following
substitute to SB 127:
A BILL TO BE ENTITLED
AN ACT
To amend Title 13 of the Official Code of Georgia Annotated, relating to contracts, so as to1
make certain disclosure and notification requirements concernin g automatic renewal2
provisions applicable to service contracts with small businesse s; to revise and provide for3
definitions; to provide for related matters; to provide for an effective date and applicability;4
to repeal conflicting laws; and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Title 13 of the Official Code of Georgia Annotated, relating to contracts, is amended by8
revising Chapter 12, relating to automatic renewal provisions, as follows:9
"CHAPTER 1210
13-12-1.11
As used in this chapter, the term:12
(1) 'Automatic renewal provision' means a provision under which a service contract is13
renewed for a specified period of more than one month if the renewal causes the service14
- 1 -
25 LC 55 0502S
contract to be in effect more than six months after the day of the initiation of the service15
contract. Such renewal is effective unless the consumer or small business gives notice16
to the seller of the consumer's or small business's intention to terminate the service17
contract.18
(2) 'Consumer' means a natural person or a nonprofit organization exempt from taxation19
under Section 501(c)(3) of the Internal Revenue Code of 1986 re ceiving service,20
maintenance, or repair benefits under a service contract. The term does not include a21
natural person engaged in business or employed by or otherwise acting on behalf of a22
governmental entity if the person enters into the service contract as part of or ancillary23
to the person's business activities or on behalf of the business or governmental entity.24
(3) 'Seller' means any person, firm, partnership, association, or corporation engaged in25
commerce that sells, leases, or offers to sell or lease any service to a consumer or small26
business pursuant to a service contract.27
(4) 'Service contract' means a written contract for the perfor mance of services for a28
specified period of time.29
(5) 'Small business' means a business that is independently owned and operated, is not30
dominant in its field of operation, and employs fewer than 200 employees.31
13-12-2.32
Any seller that sells, leases, or offers to sell or lease any s ervice to a consumer or small33
business pursuant to a service contract that has an automatic renewal p rovision shall34
disclose the automatic renewal provision clearly and conspicuou sly in the contract or35
contract offer.36
13-12-3.37
(a) Any seller that sells, leases, or offers to sell or lease any service to a consumer or small38
business pursuant to a service contract for a specified period of 12 months or more and that39
- 2 -
25 LC 55 0502S
automatically renews for a specified period of more than one month, unless the consumer40
or small business cancels the contract, shall provide the consumer or small business with41
written or electronic notification of the automatic renewal provision. Notification shall be42
provided to the consumer or small business no less than 30 days or no more than 60 days43
before the cancellation deadline pursuant to the automatic rene wal provision. Such44
notification shall disclose clearly and conspicuously:45
(1) That unless the consumer or small business cancels the contract, the contract will46
automatically renew; and47
(2) The methods by which the consumer or small business may obtain details of the48
automatic renewal provision and cancellation procedure, including contacting the seller49
at a specified telephone number or address, referring to the contract, or any other method.50
(b) For any contract for service to a consumer or small business that automatically renews51
for a specified period of more than 24 months, the seller shall, in addition to providing the52
notification required under subsection (a) of this Code section, obtain the following for the53
automatic renewal provision of such contract to be enforceable:54
(1) Written or electronic acknowledgment from the consumer or small business o f55
receipt of the notification required under subsection (a) of this Code section; and56
(2) An affirmative written or electronic response that the con sumer or small business57
does not intend to terminate the service contract.58
13-12-4.59
This chapter shall not apply to:60
(1) A financial institution as provided in Chapter 1 or 2 of T itle 7 or any depository61
institution as defined in 12 U.S.C. Section 1813(c)(2);62
(2) A foreign bank maintaining a branch or agency licensed under the laws of any state63
of the United States;64
- 3 -
25 LC 55 0502S
(3) Any subsidiary or affiliate of an entity provided in paragraph (1) or (2) of this Code65
section;66
(4) Any electric utility as provided in Chapter 3 of Title 46;67
(5) Any entity regulated pursuant to Chapter 45 of Title 43; or68
(6) Any county, municipal corporation, authority, or local gov ernment or governing69
body; or70
(7) Any service contract between a seller and a small business wherein the small71
business is required to pay more than $200.00 in consideration on a monthly basis for the72
services to be provided thereunder or the equivalent thereof fo r any other installment73
period provided in such service contract.74
13-12-5.75
A violation of this chapter renders the automatic renewal provision of a contract void and76
unenforceable."77
SECTION 2.78
This Act shall become effective on July 1, 2026, and shall apply to service contracts entered79
into on or after such date.80
SECTION 3.81
All laws and parts of laws in conflict with this Act are repealed.82
- 4 -

## Summaries written by Georgia Commons

The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.

A Georgia Senate bill would extend existing consumer protections against automatic contract renewals to small businesses, requiring sellers to clearly disclose and provide advance notice before service contracts automatically renew.

### Plain-language summary

Georgia law already requires sellers to disclose automatic renewal terms in service contracts with consumers. This bill rewrites Chapter 12 of Title 13 of Georgia's contract code (O.C.G.A. Title 13, Chapter 12) to extend those same protections to small businesses, defined as independently operated companies with fewer than 200 employees.
Sellers offering service contracts with automatic renewal provisions must disclose them clearly in the contract. For contracts of 12 months or more that auto-renew for over a month, sellers must send written or electronic renewal notices 30 to 60 days before the cancellation deadline. Contracts that auto-renew for more than 24 months require the seller to get written acknowledgment and an affirmative response from the consumer or small business. Certain entities, like banks, electric utilities, and government bodies, are exempt, as are small business contracts under $200 a month. Violations make the renewal provision void. The law would take effect July 1, 2026, applying to contracts entered into on or after that date.

### What it does

- Expands Georgia's automatic renewal disclosure law to cover small businesses (fewer than 200 employees) in addition to consumers.
- Requires sellers to clearly disclose automatic renewal provisions in service contracts or contract offers.
- Requires written or electronic renewal notices sent 30 to 60 days before the cancellation deadline for contracts of 12 months or more.
- Requires written acknowledgment and an affirmative opt-in response for contracts that auto-renew for more than 24 months.
- Exempts banks, foreign bank branches, electric utilities, certain regulated entities, local governments, and small business contracts under $200 per month.
- Makes any violation of the chapter render the automatic renewal provision void and unenforceable.

### Who it affects

Small businesses with fewer than 200 employees that sign service contracts, consumers who already had similar protections, and sellers such as service providers who offer contracts with automatic renewal clauses. Banks, electric utilities, certain regulated industries, and local governments are exempt from the requirements.

### Why it matters

Small businesses that sign service contracts, such as software, maintenance, or equipment leases, would gain the same advance-notice protections consumers already have, making it harder for a contract to silently renew for months or years without the business's knowledge or written consent.

### Key provisions

- Section 1 rewrites O.C.G.A. Chapter 12 of Title 13, adding 'small business' as a protected category alongside 'consumer' in the definitions section (13-12-1).
- O.C.G.A. § 13-12-2 requires sellers to clearly and conspicuously disclose automatic renewal provisions in the contract or contract offer.
- O.C.G.A. § 13-12-3(a) requires 30-to-60-day advance written or electronic renewal notices for contracts of 12 months or longer.
- O.C.G.A. § 13-12-3(b) adds extra requirements, written acknowledgment and an affirmative response, for contracts renewing for more than 24 months.
- O.C.G.A. § 13-12-4 lists exemptions, including banks, electric utilities, local governments, and small business contracts costing $200 or less per month.
- O.C.G.A. § 13-12-5 states that violating the chapter voids the automatic renewal provision.
- Section 2 sets the effective date as July 1, 2026, applying only to contracts entered into on or after that date.

## Status

- Status: Introduced (2025-02-10)
- Last action: Senate Recommitted (2026-01-12)
- Sponsors: Timothy Bearden, Matt Brass, Jason Anavitarte, Brian Strickland, John Albers, Marty Harbin, Greg Dolezal, Lee Anderson, Randy Robertson
- Official page: https://www.legis.ga.gov/legislation/70081

> The history, votes, and amendments (254 characters) are at https://georgiacommons.org/bills/2025-2026/sb127.md?full=1