As Reported by the Senate Judiciary Committee            1            

123rd General Assembly                                             4            

   Regular Session                           Sub. H. B. No. 490    5            

      1999-2000                                                    6            


     REPRESENTATIVES WILLAMOWSKI-NETZLEY-TAYLOR-TERWILLEGER-       8            

          TIBERI-VAN VYVEN-WINKLER-HARTNETT-DAMSCHRODER            9            


_________________________________________________________________   10           

                          A   B I L L                                           

             To amend section 153.56 of the Revised Code to        12           

                clarify the provisions pertaining to the time      13           

                period within which a lawsuit must be brought to   14           

                recover money due to any person for labor or work  15           

                performed or materials furnished in a public                    

                improvement project.                                            




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        17           

      Section 1.  That section 153.56 of the Revised Code be       19           

amended to read as follows:                                        20           

      Sec. 153.56.  (A)  Any person to whom any money is due for   29           

labor or work performed or materials furnished in a public         31           

improvement as provided in section 153.54 of the Revised Code, at  32           

any time after performing the labor or work or furnishing the      33           

materials, but not later than ninety days after THE COMPLETION OF  34           

THE CONTRACT BY THE PRINCIPAL CONTRACTOR AND the acceptance of     35           

the public improvement FOR WHICH THE BOND WAS PROVIDED by the      36           

duly authorized board or officer, shall furnish the sureties on    37           

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

      (B)  A suit shall not be brought against sureties on the     39           

bond until after sixty days after the furnishing of the statement  41           

described in division (A) of this section.  If the indebtedness    43           

is not paid in full at the expiration of that sixty days, and if   44           

the person complies with division (C) of this section, the person  45           

may bring an action in the person's own name upon the bond, as     46           

provided in sections 2307.06 and 2307.07 of the Revised Code,      47           

                                                          2      


                                                                 
that action to be commenced, notwithstanding section 2305.12 of    48           

the Revised Code, not later than one year from the date of         49           

acceptance of the public improvement FOR WHICH THE BOND WAS        50           

PROVIDED.                                                                       

      (C)  To exercise rights under this section, a subcontractor  53           

or materials supplier supplying labor or materials that cost more  54           

than thirty thousand dollars, who is not in direct privity of      55           

contract with the principal contractor for the public              56           

improvement, shall serve a notice of furnishing upon the                        

principal contractor in the form provided in section 1311.261 of   57           

the Revised Code.                                                  59           

      (D)  A subcontractor or materials supplier who serves a      62           

notice of furnishing under division (C) of this section as         63           

required to exercise rights under this section has the right of    64           

recovery only as to amounts owed for labor and work performed and  65           

materials furnished during and after the twenty-one days           66           

immediately preceding service of the notice of furnishing.         67           

      (E)  For purposes of this section, "principal contractor"    70           

has the same meaning as in section 1311.25 of the Revised Code.    71           

      Section 2.  That existing section 153.56 of the Revised      73           

Code is hereby repealed.                                           74