As Introduced                            1            

123rd General Assembly                                             4            

   Regular Session                                H. B. No. 490    5            

      1999-2000                                                    6            


     REPRESENTATIVES WILLAMOWSKI-NETZLEY-TAYLOR-TERWILLEGER-       8            

                TIBERI-VAN VYVEN-WINKLER-HARTNETT                  9            


_________________________________________________________________   10           

                          A   B I L L                                           

             To amend section 153.56 of the Revised Code to        12           

                modify the time period within which a lawsuit      13           

                must be brought to recover money due to any                     

                person for labor or work performed or materials    14           

                furnished in a public improvement project.                      




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        16           

      Section 1.  That section 153.56 of the Revised Code be       18           

amended to read as follows:                                        19           

      Sec. 153.56.  (A)  Any person to whom any money is due for   28           

labor or work performed or materials furnished in a public         30           

improvement as provided in section 153.54 of the Revised Code, at  31           

any time after performing the labor or work or furnishing the      32           

materials, but not later than ninety days after the acceptance of  33           

the public improvement FOR WHICH THE BOND WAS PROVIDED by the      34           

duly authorized board or officer, shall furnish the sureties on    35           

the bond, a statement of the amount due to the person.                          

      (B)  A suit shall not be brought against sureties on the     37           

bond until after sixty days after the furnishing of the statement  39           

described in division (A) of this section.  If the indebtedness    41           

is not paid in full at the expiration of that sixty days, and if   42           

the person complies with division (C) of this section, the person  43           

may bring an action in the person's own name upon the bond, as     44           

provided in sections 2307.06 and 2307.07 of the Revised Code,      45           

that action to be commenced, notwithstanding section 2305.12 of    46           

the Revised Code, not later than one year from the date of         47           

                                                          2      


                                                                 
acceptance of the public improvement FOR WHICH THE BOND WAS        48           

PROVIDED.                                                                       

      (C)  To exercise rights under this section, a subcontractor  51           

or materials supplier supplying labor or materials that cost more  52           

than thirty thousand dollars, who is not in direct privity of      53           

contract with the principal contractor for the public              54           

improvement, shall serve a notice of furnishing upon the                        

principal contractor in the form provided in section 1311.261 of   55           

the Revised Code.                                                  57           

      (D)  A subcontractor or materials supplier who serves a      60           

notice of furnishing under division (C) of this section as         61           

required to exercise rights under this section has the right of    62           

recovery only as to amounts owed for labor and work performed and  63           

materials furnished during and after the twenty-one days           64           

immediately preceding service of the notice of furnishing.         65           

      (E)  For purposes of this section, "principal contractor"    68           

has the same meaning as in section 1311.25 of the Revised Code.    69           

      Section 2.  That existing section 153.56 of the Revised      71           

Code is hereby repealed.                                           72