--- title: SB 201. Consumer Transactions; increased consumer protection for homeowners entering into contracts with contractors following natural disasters; provide collection: bills id: 2025-2026/sb201 cite_as: SB 201, 2025-2026 Regular Session (Ga.) canonical_url: https://georgiacommons.org/bills/2025-2026/sb201 md_url: https://georgiacommons.org/bills/2025-2026/sb201.md text_url: https://georgiacommons.org/bills/2025-2026/sb201/text source_url: https://www.legis.ga.gov/legislation/70494 date: 2025-05-08 status: passed 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/sb200.md next: https://georgiacommons.org/bills/2025-2026/sb202.md index: https://georgiacommons.org/bills/index.md omitted: votes and history omitted_chars: 1234 omitted_url: https://georgiacommons.org/bills/2025-2026/sb201.md?full=1 bill_number: SB 201 session: 2025-2026 Regular Session session_slug: 2025-2026 chamber: Senate bill_type: bill status_date: 2025-05-08 last_action: Effective Date 2025-07-01 sponsors: - Larry Walker - Russ Goodman - Mike Hodges - Blake Tillery - Sam Watson - Carden Summers - Billy Hickman - Chuck Payne - Brian Strickland - Max Burns - Ed Setzler - Matt Brass - Randy Robertson - Lee Anderson - Kay Kirkpatrick - Ricky Williams - Frank Ginn - Drew Echols - Timothy Bearden - Marty Harbin - Shawn Still - Bo Hatchett - Brandon Beach - John Kennedy - Jason Anavitarte - Steve Gooch - Leesa Hagan text_version: Enrolled has_text: true legiscan_url: https://legiscan.com/GA/bill/SB201/2025 upstream_id: 1976332 summaries_model: claude-sonnet-5 topic_tags: - consumer protection - natural disaster recovery - homeowners insurance - contractor regulation - insurance law --- # SB 201. Consumer Transactions; increased consumer protection for homeowners entering into contracts with contractors following natural disasters; provide ## Text 25 LC 46 1228S Senate Bill 201 By: Senators Walker III of the 20th, Goodman of the 8th, Hodges of the 3rd, Tillery of the 19th, Watson of the 11th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Code Section 10-1-393 of the Official Code of Georgia Annotated, relating to1 unfair or deceptive practices in consumer transactions unlawful and examples, so as to2 provide increased consumer protection for homeowners entering i nto contracts with3 contractors following natural disasters; to provide for certain contractual requirements; to4 provide for notice language; to amend Code Section 33-6-5 of the Official Code of Georgia5 Annotated, relating to unfair methods of competition and unfair or deceptive acts or6 practices, so as to prohibit the assignment of benefits in certain circumstances; to provide for7 definitions; to provide for related matters; to provide for legislative findings; to provide for8 effective dates and applicability; to repeal conflicting laws; and for other purposes.9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:10 SECTION 1.11 The General Assembly finds that:12 (1) Following natural disasters, homeowners often need for repairs to be completed to their13 homes in an expeditious manner;14 (2) Due to such time pressures, homeowners may enter into cont racts with contractors15 much more quickly than such homeowners typically would;16 S. B. 201 - 1 - 25 LC 46 1228S (3) Many homeowners believe that assigning their insurance proceeds to contractors who17 contract to work on their homes will expedite the repairs of such homes;18 (4) Such homeowners may not realize that some contractors will accept the assigned19 insurance proceeds and then fail to expeditiously perform the r equired work or perform 20 the work in a substandard manner;21 (5) There is a need in this state to provide greater protectio n for homeowners following22 natural disasters to ensure that contracted work on their homes is performed in an23 expeditious and professional manner; and24 (6) There is also a need to specifically prohibit the assignme nt of insurance proceeds to25 contractors for a period of one year following the occurrence of a natural disaster.26 SECTION 2.27 Code Section 10-1-393 of the Official Code of Georgia Annotated , relating to unfair or28 deceptive practices in consumer transactions unlawful and examp les, is amended in29 subsection (b) by striking "and" at the end of paragraph (34), by replacing the period at the30 end of paragraph (35) with "; and", and by adding a new paragraph to read as follows:31 "(36)(A) With respect to any contractor entering into a contrac t with a homeowner32 within one year of a natural disaster for the provision of serv ices for the repair,33 replacement, or mitigation of damage of or to the homeowner's home caused by such34 disaster:35 (i) Failing to substantially commence work on the contracted services within one year36 of the execution of such contract;37 (ii) Completing all or a portion of the agreed upon services in a substandard manner;38 (iii) Entering into a contract with the homeowner whereby the homeowner assigned39 insurance proceeds to the contractor;40 (iv) Completing services in a manner inconsistent with the state minimum standard41 codes or accredited industry standards; or42 S. B. 201 - 2 - 25 LC 46 1228S (v) Failing to comply with subparagraph (B) of this paragraph.43 (B) Any contractor entering into a contract with a homeowner w ithin one year of a44 natural disaster for the provision of services for the repair, replacement, or mitigation45 of damage of or to the homeowner's home caused by such disaster shall:46 (i) Accept the cancellation of the contract by the homeowner prior to midnight on the47 fifth business day after such homeowner has received written notice from the insurer48 that all or any part of the claim or contract related to the na tural disaster is not a49 covered loss under the homeowner's insurance policy. Cancellat ion shall be50 evidenced by the homeowner giving written notice of cancellation to the contractor51 at the address stated in the contract. Notice of cancellation, if given by mail, shall be52 effective upon deposit into the United States mail, postage pre paid and properly53 addressed to the contractor. Notice of cancellation need not take a particular form and54 shall be sufficient if it indicates, by any form of written expression, the intention of55 the homeowner not to be bound by the contract; and56 (ii) Before entering a contract as provided in this subparagraph:57 (I) Furnish the homeowner with a statement in boldface type of a minimum size of58 ten points in substantially the following form:59 'You may cancel this contract at any time before midnight on the fifth business day60 after you have received written notification from your insurer that all or any part of61 the claim or contract is not a covered loss under the insurance policy. This right to62 cancel is in addition to any other rights of cancellation which may be found in state63 or federal law or regulation. See the attached notice of cance llation form for an64 explanation of this right'; and65 (II) Furnish each homeowner with a fully completed form in duplicate, captioned66 'NOTICE OF CANCELLATION,' which shall be attached to the contract but easily67 detachable, and which shall contain in boldface type of a minim um size of ten68 points the following statement:69 S. B. 201 - 3 - 25 LC 46 1228S 'NOTICE OF CANCELLATION70 If you are notified by your insurer that all or any part of the claim or contract is not71 a covered loss under the insurance policy, you may cancel the contract by mailing72 or delivering a signed and dated copy of this cancellation notice or any other written73 notice to (name of contractor) at 74 (address of contractor's place of business)75 at any time prior to midnight on the fifth business day after you have received such76 notice from your insurer.77 I HEREBY CANCEL THIS TRANSACTION78 79 (date)80 81 (insured's signature).'82 (C) Notwithstanding other provisions of law in this paragraph, if the contractor has83 performed any emergency services, acknowledged by the homeowner in writing to be84 necessary to prevent immediate damage to the premises, the contractor shall be entitled85 to collect the reasonable amount due for the emergency services at the time they are86 rendered. Any provision in a contract provided for in this paragraph that requires the87 payment of any fee for any services except emergency services shall not be enforceable88 against any homeowner who has canceled a contract under this paragraph.89 (D) As used in this paragraph, the term 'natural disaster' mea ns a flood, tornado,90 hurricane, earthquake, or other occurrence for which a state of emergency is proclaimed91 by the Governor."92 SECTION 3.93 Code Section 33-6-5 of the Official Code of Georgia Annotated, relating to unfair methods94 of competition and unfair or deceptive acts or practices, is amended by striking "and" at the95 S. B. 201 - 4 - 25 LC 46 1228S end of paragraph (13), striking the period at the end of paragraph (14) and inserting "; and"96 in lieu thereof, and adding a new paragraph to read as follows:97 "(15)(A) No insurer shall sell homeowner's insurance policies t hat allow for the98 assignment of proceeds to a contractor within one year of a nat ural disaster which99 causes damage to the insured's residential property.100 (B) As used in this paragraph, the term:101 (i) 'Natural disaster' means a flood, tornado, hurricane, eart hquake, or other102 occurrence for which a state of emergency is proclaimed by the Governor.103 (ii) 'Residential property' means real property used or occupie d a s t h e p r i m a r y104 residence of a natural person."105 SECTION 4.106 Section 3 of this Act shall become effective on January 1, 2026 , and shall apply to all107 policies issued, delivered, issued for delivery, or renewed in this state on or after such date.108 The remainder of this Act shall become effective on July 1, 2025. 109 SECTION 5. 110 All laws and parts of laws in conflict with this Act are repealed.111 S. B. 201 - 5 - ## 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 bar contractors from taking assigned insurance proceeds and require cancellation rights and notices for homeowners who sign repair contracts within a year of a natural disaster, and would stop insurers from allowing such proceed assignments during that same period. ### Plain-language summary After storms, tornadoes, or other disasters, Georgia homeowners often rush to hire contractors to repair damage, sometimes assigning their insurance payout directly to the contractor so repairs can start faster. This bill responds to concerns that some contractors take those assigned proceeds but then delay work or do it 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 working under a contract signed within one year of a disaster to accept assigned insurance proceeds, fail to substantially start work within a year, do substandard work, or ignore state building codes. It also requires contractors to give homeowners a right to cancel the contract within five business days of learning their insurance claim is denied, along with specific notice language. Separately, it amends Georgia insurance law (O.C.G.A. § 33-6-5) to stop insurers from selling homeowner's policies that allow proceeds to be assigned to a contractor within a year of a disaster. The insurance provision takes effect January 1, 2026, for policies issued or renewed after that date; the rest of the bill takes effect July 1, 2025. ### What it does - Makes it an unfair or deceptive practice for a contractor to accept a homeowner's assigned insurance proceeds under a contract signed within one year of a natural disaster. - Requires contractors in these post-disaster contracts to let homeowners cancel within five business days after being told their insurance claim isn't covered, and to provide specific written cancellation notices. - Makes it an unfair practice for a contractor to fail to substantially start work within one year of signing the contract or to complete work in a substandard manner or against code. - Prohibits insurers from selling homeowner's insurance policies that allow assignment of proceeds to a contractor within one year of a natural disaster. - Allows contractors who perform emergency work acknowledged in writing by the homeowner to still collect reasonable payment for that emergency work even if the rest of the contract is canceled. - Defines 'natural disaster' as a flood, tornado, hurricane, earthquake, or other event for which the Governor declares a state of emergency. ### Who it affects Homeowners whose property is damaged in a disaster and who sign repair contracts, contractors who perform post-disaster repair or mitigation work, and insurance companies that write homeowner's insurance policies in Georgia. ### Why it matters Homeowners who rush to hire repair contractors after a disaster would gain a clear right to cancel bad deals and would no longer be able to hand over their insurance payout to a contractor for a full year, which is meant to reduce the risk of contractors taking money without finishing repairs. ### Key provisions - Section 1 lists legislative findings that homeowners often sign disaster repair contracts quickly and may not realize assigning insurance proceeds can leave them without recourse. - Section 2 adds a new paragraph (36) to O.C.G.A. § 10-1-393 defining specific contractor actions in post-disaster contracts as unfair or deceptive practices, including accepting assigned proceeds and failing to start work within a year. - Section 2 requires contractors to furnish a boldface cancellation notice of at least ten-point type and a detachable 'NOTICE OF CANCELLATION' form with the contract. - Section 2 allows contractors to still collect payment for emergency work the homeowner acknowledged in writing as necessary to prevent immediate damage, even after cancellation. - Section 3 amends O.C.G.A. § 33-6-5 to bar insurers from selling homeowner's policies that allow assignment of proceeds to a contractor within one year of a natural disaster. - Section 4 sets the insurance provision (Section 3) to take effect January 1, 2026 for policies issued or renewed after that date, with the rest of the Act effective July 1, 2025. ## Status - Status: Passed (2025-05-08) - Last action: Effective Date 2025-07-01 (2025-05-08) - Sponsors: Larry Walker, Russ Goodman, Mike Hodges, Blake Tillery, Sam Watson, Carden Summers, Billy Hickman, Chuck Payne, Brian Strickland, Max Burns, Ed Setzler, Matt Brass, Randy Robertson, Lee Anderson, Kay Kirkpatrick, Ricky Williams, Frank Ginn, Drew Echols, Timothy Bearden, Marty Harbin, Shawn Still, Bo Hatchett, Brandon Beach, John Kennedy, Jason Anavitarte, Steve Gooch, Leesa Hagan - Official page: https://www.legis.ga.gov/legislation/70494 > The history, votes, and amendments (1,234 characters) are at https://georgiacommons.org/bills/2025-2026/sb201.md?full=1