SB 201: Consumer Transactions; increased consumer protection for homeowners entering into contracts with contractors following natural disasters; provide

After hurricanes, tornadoes, floods, or other disasters, homeowners often rush to hire contractors and sometimes sign over their insurance payout directly to the contractor, hoping repairs get done faster. This bill responds to concerns that some contractors take that assigned money but do the work slowly or poorly. The bill amends Georgia's consumer protection law (O.C.G.A. § 10-1-393) to make it an unfair or deceptive practice for a contractor who signs a disaster-repair contract within a year of the disaster to delay starting work for more than a year, do substandard work, take an assignment of insurance proceeds, ignore state building codes, or skip new required cancellation notices. It also amends Georgia's insurance law (O.C.G.A. § 33-6-5) to bar insurers from selling homeowner policies that allow assigning proceeds to a contractor within a year of a disaster. The insurance provision takes effect January 1, 2026; the rest of the bill takes effect July 1, 2025.

• Makes it an unfair or deceptive practice for a contractor to accept assignment of a homeowner's insurance proceeds within one year of a natural disaster.
• Requires disaster-repair contractors to let homeowners cancel a contract within five business days of learning from their insurer that a claim isn't covered.
• Requires contractors to give homeowners a specific boldface cancellation notice and a detachable cancellation form before signing a disaster-repair contract.
• Bans insurers from selling homeowner's insurance policies that permit assigning proceeds to a contractor within a year of a natural disaster, starting January 1, 2026.
• Allows contractors to still collect payment for emergency work the homeowner agreed in writing was needed to prevent immediate damage, even if the contract is later canceled.
• Defines 'natural disaster' as a flood, tornado, hurricane, earthquake, or other event for which the Governor declares a state of emergency.

Homeowners repairing storm or disaster damage, contractors who do post-disaster repair work, and insurance companies that write homeowner's policies in Georgia. It also touches insurance adjusters and agents involved in claims tied to declared disasters.

Homeowners rebuilding after a disaster would gain a clear right to cancel a repair contract if their insurer denies coverage, plus protection from contractors who take insurance money without finishing the job. Insurers would have to redesign policies that currently allow proceeds to be assigned directly to contractors.

• Section 1 lists legislative findings on why homeowners need protection when contracting for post-disaster repairs.
• Section 2 adds paragraph (36) to O.C.G.A. § 10-1-393, listing unfair practices including failing to start work within a year, substandard work, taking assigned insurance proceeds, and code violations.
• Section 2 also requires contractors to provide a specific boldface cancellation disclosure and a detachable 'NOTICE OF CANCELLATION' form with exact required wording.
• Section 2 lets contractors still collect reasonable payment for emergency work the homeowner acknowledged in writing was necessary, even after cancellation.
• Section 3 adds paragraph (15) to O.C.G.A. § 33-6-5, barring insurers from selling homeowner's policies that allow assignment of proceeds to a contractor within a year of a disaster.
• Section 4 sets the insurance provision (Section 3) to take effect January 1, 2026, applying to policies issued or renewed after that date, while the rest of the Act takes effect July 1, 2025.

1. 2025-07-01Effective Date
2. 2025-05-08Act 71
3. 2025-05-08Senate Date Signed by Governor (Senate)
4. 2025-04-10Senate Sent to Governor (Senate)
5. 2025-04-04Senate Agreed House Amend or Sub (Senate)
6. 2025-03-31House Passed/Adopted By Substitute (House)
7. 2025-03-31House Third Readers (House)
8. 2025-03-20House Committee Favorably Reported By Substitute (House)

• Larry Walker, III (R, SD-20)Primary sponsor
• Russ Goodman (R, SD-8)
• Mike Hodges (R, SD-3)
• Blake Tillery (R, SD-19)
• Sam Watson (R, SD-11)
• Carden Summers (R, SD-13)
• Billy Hickman (R, SD-4)
• Chuck Payne (R, SD-54)
• Brian Strickland (R, SD-42)
• Max Burns (R, SD-23)
• Ed Setzler (R, SD-37)
• Matt Brass (R, SD-6)
• Randy Robertson (R, SD-29)
• Lee Anderson (R, SD-24)
• Kay Kirkpatrick (R, SD-32)
• Rick Williams (R, SD-25)
• Frank Ginn (R, SD-47)
• Drew Echols (R, SD-49)
• Timothy Bearden (R, SD-30)
• Marty Harbin (R, SD-16)
• Shawn Still (R, SD-48)
• Bo Hatchett (R, SD-50)
• Brandon Beach (R, SD-21)
• John F. Kennedy (R, SD-18)
• Jason Anavitarte (R, SD-31)
• Steve Gooch (R, SD-51)
• Leesa Hagan (R, HD-156)

1. PassedSenate voteMarch 4, 2025

   53 yea, 1 nay (0 not voting, 2 excused)

   PASSAGE BY SUBSTITUTE: Senate Vote #157

2. PassedHouse voteMarch 31, 2025

   163 yea, 1 nay (5 not voting, 11 excused)

   PASSAGE: House Vote #368

3. PassedSenate voteApril 4, 2025

   49 yea, 1 nay (5 not voting, 1 excused)

   AGREE TO HOUSE SUBSTITUTE: Senate Vote #447

• consumer protection
• natural disaster recovery
• homeowners insurance
• contractor regulation
• insurance claims