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SB 201

CONSTRUCTION SAFE DETOUR ACT

104th Regular Session Introduced by Chapin Rose

Senate Bill 201 protects Georgia homeowners post-natural disasters by ensuring fair contractor practices, allowing contract cancellations, and banning insurance proceeds assignments.

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Bill Summary · SB 201

Summary of Senate Bill 201 (SB 201)

Purpose and Intent

Senate Bill 201 (SB 201) aims to enhance consumer protection for homeowners in Georgia who enter into contracts with contractors following natural disasters. The bill seeks to ensure that homeowners are not taken advantage of during vulnerable times when they require urgent repairs to their homes.

Key Provisions

SB 201 introduces several important changes to existing laws regarding consumer transactions and insurance practices:

  1. Consumer Protection Measures:

    • The bill amends Code Section 10-1-393 to classify specific contractor behaviors as unfair or deceptive practices. This includes:
      • Failing to commence work on contracted services within one year.
      • Completing work in a substandard manner.
      • Entering contracts that involve the assignment of insurance proceeds to contractors.

  2. Contractual Requirements:

    • Contractors must accept cancellations from homeowners within five business days after the homeowner receives notice from their insurer that the claim is not covered.
    • Contractors are required to provide homeowners with clear cancellation rights and a notice of cancellation form at the time of contract signing.

  3. Prohibition on Assignment of Insurance Proceeds:

    • The bill prohibits insurers from selling homeowner's insurance policies that allow for the assignment of proceeds to contractors for one year following a natural disaster.

  4. Definitions:

    • The term "natural disaster" is defined to include events such as floods, tornadoes, hurricanes, and earthquakes, which lead to a state of emergency proclaimed by the Governor.

Impact

  • Homeowners: The bill is designed to protect homeowners from potential exploitation by contractors during emergencies, ensuring they have the right to cancel contracts and receive quality service.
  • Contractors: The legislation imposes stricter regulations on contractors, requiring them to adhere to higher standards of service and transparency in their dealings with homeowners.
  • Insurance Companies: Insurers will need to adjust their policies to comply with the prohibition on the assignment of benefits for a year after a natural disaster.

Procedural Aspects

  • Introduced: February 5, 2025
  • Status: The bill was referred to the Joint Budget Committee and passed through various legislative stages, including being signed by the Governor on May 8, 2025.
  • Effective Date: The provisions of the bill will take effect on July 1, 2025.

Conclusion

Senate Bill 201 represents a significant step towards improving consumer protection for homeowners in Georgia, particularly in the aftermath of natural disasters. By establishing clear guidelines and protections, the bill aims to foster a fairer contracting environment and ensure that homeowners can secure necessary repairs without undue risk.

Compiled from official sources — confirm details with the bill’s official record.

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