Georgia Restrictive Covenant Act

 The Georgia Restrictive Covenant Act ("Act") was to be effective November 3, 2010, after Georgia voters’ ratified a Constitutional amendment designed to give effect to the Act.  However, the Constitutional amendment failed to include an effective date, thus the amendment did not take effect until January 1, 2011.  Now, the Act is exposed to possible constitutional challenges, including questions as to whether it did or can take effect as intended.

Therefore, State Representative Wendall Willard, Chairman of the House Judiciary Committee,  introduced House Bill 30, which states that its intention is to “remove any such uncertainty by substantially reenacting the substantive provisions of HB 173 [the Restrictive Covenant Act].”   The Bill also states that its enactment should not be taken as evidence that the previous statute was invalid.  If passed, House Bill 30 would go into effect immediately when the Governor signs it, but would not retroactively apply to any contract signed before it takes effect.
When or if this new bill may pass is not known at this time.