ATLANTA, GA — On May 11, Georgia Governor Brian Kemp signed Senate Bill 553 into law, establishing new restrictions on how plumbing, HVAC, electrical and utility contracting services can be advertised in the state of Georgia. The law, which took effect July 1, prohibits unlicensed individuals and businesses from advertising themselves as plumbers, HVAC contractors, electrical contractors or utility contractors unless they hold the appropriate state-issued professional license.

The legislation is designed to strengthen consumer protections while helping ensure licensed contractors compete on a level playing field.

Read CONTRACTOR's coverage of the licensing controversy currently under way in Louisiana. 

New Advertising Rules Apply to Licensed Trades

Before SB553 became law, unlicensed businesses could advertise plumbing, HVAC and other skilled trade services despite lacking the credentials required to perform the work legally. That often left homeowners unable to distinguish qualified contractors from unlicensed operators.

Under the new law, only contractors licensed by the State of Georgia as Master Plumbers, Conditioned Air Contractors, Electrical Contractors or Utility Contractors may advertise services within those regulated trades.

For example, a business cannot market itself as a plumbing contractor or operate under a name such as "Bob's Plumbing" without holding a valid Georgia Master Plumber license. Violations may result in significant fines and potential criminal penalties.

Law Aims to Reduce Poor-Quality Installations

Supporters of the legislation say the change addresses a long-standing problem in which unlicensed contractors performed installations, repairs and service work that failed to meet building codes or industry standards.

Substandard work can result in costly repairs, property damage and safety concerns for homeowners. By limiting advertising to licensed professionals, lawmakers intend to give consumers greater confidence that the contractor they hire has met Georgia's licensing requirements.

Industry Groups Helped Shape the Legislation

The legislation was developed with input from several organizations representing Georgia's licensed skilled trades after Gov. Kemp's office and state lawmakers sought recommendations on how to better protect consumers from misleading contractor advertising.

"SB553 is the culmination of years of advocacy by PHCC of Georgia and our members to protect both consumers and the integrity of the licensed trades," said Ellen Whitaker, Executive Director of PHCC of Georgia. "We are grateful to Governor Brian Kemp, the General Assembly, and our coalition partners for working together to pass legislation that ensures Georgians can trust that those advertising licensed plumbing, HVAC, electrical, and utility services have met the professional standards required by state law. This law strengthens consumer confidence, supports ethical businesses, and reinforces the value of professional licensure."

"This is a significant step forward, but our work doesn't end here. PHCC of Georgia will continue educating contractors, consumers, and policymakers about the importance of professional licensing and enforcing the standards that protect the health, safety, and welfare of every Georgian."

In addition to PHCC of Georgia, organizations representing electricians, utility contractors and other specialty construction trades participated in developing the legislation.

Broad Legislative Support

SB553 received near-unanimous bipartisan approval in both chambers of the Georgia General Assembly before being signed into law.

Supporters say the measure benefits both consumers and licensed contractors by helping ensure businesses advertising regulated trade services meet the qualifications required by the state.

For Georgia homeowners, the law provides added assurance that contractors advertising plumbing, HVAC, electrical or utility services have the licensing credentials required to perform the work.