Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Sb201 Storm Chaser Contracts topic
No spam. Unsubscribe anytime.
Senate bill would let homeowners cancel contracts after governor-declared disasters; lawmakers debate time limits
Summary
Sen. Walker presented SB 201 to limit predatory contracting after natural disasters, allowing homeowners in governor-declared emergency counties to cancel certain contracts; committee members debated the appropriate cancellation window and scope of the definition of "natural disaster."
Sen. Walker presented Senate Bill 201 to the House Agriculture and Consumer Affairs Committee as a response to scams and predatory contractors that follow natural disasters. The bill would add consumer protections under the Georgia Fair Business Practices Act for homeowners in counties where the governor has declared a state of emergency.
Under the proposal, a homeowner could cancel a contract with a contractor who "fails to substantially commence work," does not complete agreed services in a proper manner, or takes assignment of insurance benefits but does not perform. The bill would create a notice period allowing a homeowner five days to cancel when an insurer denies part or all of a claim; the opt-out provision must be spelled out in the contract, the bill says.
Walker described the policy as targeted to "storm-chaser" contractors who take advantage of vulnerable homeowners after major disasters. He said the protections would generally apply within 12 months of the natural disaster and only in counties declared a state of emergency by the governor; he also said emergency mitigation such as temporary tarps would be carved out.
Committee members pressed Walker on two main issues: the appropriate time window for "failing to substantially commence work" (Walker proposed 12 months on the floor, and members suggested shorter periods such as six months might be appropriate in some cases) and whether to limit the bill to governor-declared emergencies or allow county-level declarations to trigger protections for smaller-scale disasters.
Chairman Hagan and several members described the post-disaster environment after Hurricane Helene, noting prolonged waits for legitimate contractors and continuing recovery needs; one member said in his district it took more than four months to replace a roof. Several members urged balance so legitimate contractors would not be deterred from responding.
Walker said some sections may need redrafting including the statutory cross-reference to a definition of "natural disaster" and an effective date requested by insurers for one provisionand he invited committee input before bringing the bill back.
Ending: Committee members thanked Walker for the proposal and the senator said he would rework language and return the bill for further consideration.
