ATLANTA — Georgia has enacted new licensing requirements that prohibit unlicensed businesses and individuals from advertising HVAC, plumbing, electrical, or utility contracting services.

Gov. Brian Kemp signed SB553 into law on May 11. As of July 1, only contractors licensed by the state as Master Plumbers, Conditioned Air Contractors, Electrical Contractors, or Utility Contractors may advertise those services in Georgia.

According to PHCC of Georgia, the legislation is intended to prevent unlicensed entities from presenting themselves as qualified contractors. 

"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," says Ellen Whitaker, executive director of PHCC of Georgia. "This law strengthens consumer confidence, supports ethical businesses, and reinforces the value of professional licensure."

Although Whitaker notes PHCC of Georgia does not have a reliable statewide count of abuse, any entity could market itself to consumers as an HVAC contractor or plumber and create the appearance of being fully qualified, even when it had not met the licensing standards required of legitimate contractors.

"Our members are frequently called after something has already gone wrong," she says. "The homeowner may initially believe they saved money, but then has to pay a licensed contractor to diagnose the problem, remove or correct the defective work, and bring the installation into compliance. Contractors encounter improperly sized systems, poorly designed or leaking ductwork, unsafe connections, inadequate ventilation, equipment installed without required permits, work that does not meet code, and systems that fail prematurely."

Whitaker adds that the low cost of advertising and access to social media pages contributed to the problem. "It was common enough that licensed contractors around the state repeatedly called us with websites, online advertisements, social-media pages, truck signage, and business names promoting plumbing or HVAC services without a properly licensed master plumber or conditioned-air contractor connected to the company.

"SB553 creates a fairer marketplace," she continues. "Licensed plumbers and HVAC contractors invest years in training and experience, pass examinations, complete continuing education, maintain their credentials and accept responsibility for the work performed under their licenses. They should not have to compete against businesses that avoid those obligations but advertise to the public as though they have met the same standards."

Under the new law, an unlicensed business cannot advertise itself as providing licensed trade services or use business names that imply it holds the required professional license. Violations are subject to fines and potential criminal penalties.

As of July 1, advertising or offering regulated HVAC services without the required license can be treated as evidence of unlicensed practice. The appropriate division of the State Construction Industry Licensing Board can investigate alleged violations and pursue enforcement through the licensing process, Whitaker explains. The board has authority to issue cease-and-desist orders, civil penalties, and referral for further legal proceedings when appropriate. SB553 reorganized and strengthened the State Construction Industry Licensing Board’s authority, including the ability to investigate violations and assess civil penalties.

"SB553 does not guarantee that every improper advertisement will disappear overnight, but it gives the state stronger enforcement tools and makes it much harder for an unlicensed operator to hide behind the argument that they were merely marketing or subcontracting the work," Whitaker says.

Consumers and licensed contractors should report suspected violations through the Georgia Secretary of State’s Goals complaint process. They should provide specific evidence—not simply an allegation—including screenshots of websites or digital advertisements, the web address, dates, photographs of truck signage or printed materials, the business name and address, and the results of any license search they conducted. The entire process may take many months to complete. 

PHCC of Georgia worked alongside organizations representing electrical, utility, and other specialty construction trades after Gov. Kemp's office and state lawmakers sought industry input on legislation to address unlicensed contractor advertising.

The bill received near-unanimous bipartisan approval in the Georgia General Assembly before being signed into law.

Whitaker says PHCC of Georgia has already had interest from colleagues in other states who recognize that misleading advertising and unlicensed activity are not unique to Georgia. "They are interested in how Georgia brought the licensed trades together, worked with the Governor’s office and lawmakers, and developed a straightforward standard: a business should not advertise licensed professional services unless it is properly qualified to provide them. Our National office is working closely with state chapters on this legislation as a best practice." 

She notes that SB553 cold serve as a model for other states, "although contractor licensing remains largely a state responsibility and the licensing structures vary considerably across the country."

Georgia demonstrated that consumer protection does not always require a complicated new regulatory system. "The principle is simple: if a trade requires a professional license, a business should not be permitted to advertise that licensed service unless it has the proper licensed professional connected to the company," Whitaker says. "That is a commonsense standard that could be adapted by other states while respecting their individual licensing systems. I would describe it as a model for state-level reform, rather than implying that a single national contractor license is imminent."

Whitaker adds that the law was not created to protect a title, but to protect people. 

"Your license has value," she says. "It represents years of training, experience, testing, accountability and commitment to protecting the public. SB553 matters because it defends that investment, gives consumers greater confidence and makes clear that no business should be allowed to market itself as a licensed professional without meeting the standards that legitimate contractors meet every day."