HB1506: HB1506 Contracts; payment terms for business to business transactions; provide

26 LC 48 1798 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 to1 prompt payment, so as to provide for payment terms for business to business transactions;2 to provide for definitions; to provide for related matters; to repeal conflicting laws; and for3 other purposes.4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5 SECTION 1.6 Chapter 11 of Title 13 of the Official Code of Georgia Annotate d, relating to prompt7 payment, is amended by revising Code Section 13-11-2, relating to definitions, as follows:8 "13-11-2.9 As used in this chapter, the term:10 (1) 'Business to business transaction' means a financial exchange of goods, services, or11 information for payment between two or more businesses.12 (1)(2) 'Contractor' means a person who contracts with an owner to improve real property,13 to perform construction services, or to perform construction management services for an14 owner.15 H. B. 1506 - 1 - 26 LC 48 1798 (2)(3) 'Improve' means to build, effect, alter, repair, or demolish any improvement upon,16 connected with, or on or beneath the surface of any real proper ty or to excavate, clear,17 grade, fill, or landscape any real property or to construct driveways and private roadways18 or to furnish materials, including trees and shrubbery, for any of such purposes or to19 perform any labor upon such improvements.20 (3)(4) 'Improvement' means all or any part of any building, structure, erection, alteration,21 demolition, excavation, clearing, grading, filling, or landscap ing, including trees and22 shrubbery, driveways, and roadways, on real property.23 (4)(5) 'Owner' means a person who has an interest in the real property improved and for24 whom an improvement is made and who ordered the improvement to be made. 'Owner'25 The term 'owner' includes private persons and entities and state, local, or mun icipal26 government agencies, instrumentalities, or entities; provided, however, that the provisions27 of this chapter shall not apply when the owner is a county havi ng a population of less28 than 10,000 according to the United States decennial census of 1990 or any such future29 census or when the owner is a municipality having a population of less than 2,50030 according to the United States decennial census of 1990 or any such future census.31 (5)(6) 'Owner's representative' means the architect or engineer in charge of the project32 for the owner or such other contract representative or officer as designated in the contract33 documents as the party representing the owner's interest regard ing administration and34 oversight of the project.35 (6)(7) 'Real property' means the real estate that is improved, including lands, leaseholds,36 tenements, and improvements placed on the real property.37 (7)(8) 'Receipt' means actual receipt of cash or funds in the contractor's or subcontractor's38 bank account.39 (8)(9) 'Subcontractor' means any person who has contracted to furnish labor or materials40 to, or has performed labor or supplied materials for, a contractor or another subcontractor41 in connection with a contract to improve real property. For purposes of this chapter, the42 H. B. 1506 - 2 - 26 LC 48 1798 term 'subcontractor' shall also include materialmen as defined in Code Section43 44-14-360."44 SECTION 2.45 Said chapter is further amended by adding a new Code section to read as follows:46 "13-11-4.1.47 In any business to business transaction where a business has performed in accordance with48 the provisions of a contract, such business shall within 30 days of receipt be paid for any49 work completed or service provided under the contract."50 SECTION 3.51 All laws and parts of laws in conflict with this Act are repealed.52 H. B. 1506 - 3 -