As Passed by the Senate                       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-            10           

                      SENATORS CUPP-GARDNER                                     


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                          A   B I L L                                           

             To amend section 153.56 of the Revised Code to        14           

                clarify the provisions pertaining to the time      15           

                period within which a lawsuit must be brought to   16           

                recover money due to any person for labor or work  17           

                performed or materials furnished in a public                    

                improvement project.                                            




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        19           

      Section 1.  That section 153.56 of the Revised Code be       21           

amended to read as follows:                                        22           

      Sec. 153.56.  (A)  Any person to whom any money is due for   31           

labor or work performed or materials furnished in a public         33           

improvement as provided in section 153.54 of the Revised Code, at  34           

any time after performing the labor or work or furnishing the      35           

materials, but not later than ninety days after THE COMPLETION OF  36           

THE CONTRACT BY THE PRINCIPAL CONTRACTOR AND the acceptance of     37           

the public improvement FOR WHICH THE BOND WAS PROVIDED by the      38           

duly authorized board or officer, shall furnish the sureties on    39           

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

      (B)  A suit shall not be brought against sureties on the     41           

bond until after sixty days after the furnishing of the statement  43           

described in division (A) of this section.  If the indebtedness    45           

is not paid in full at the expiration of that sixty days, and if   46           

the person complies with division (C) of this section, the person  47           

may bring an action in the person's own name upon the bond, as     48           

                                                          2      


                                                                 
provided in sections 2307.06 and 2307.07 of the Revised Code,      49           

that action to be commenced, notwithstanding section 2305.12 of    50           

the Revised Code, not later than one year from the date of         51           

acceptance of the public improvement FOR WHICH THE BOND WAS        52           

PROVIDED.                                                                       

      (C)  To exercise rights under this section, a subcontractor  55           

or materials supplier supplying labor or materials that cost more  56           

than thirty thousand dollars, who is not in direct privity of      57           

contract with the principal contractor for the public              58           

improvement, shall serve a notice of furnishing upon the                        

principal contractor in the form provided in section 1311.261 of   59           

the Revised Code.                                                  61           

      (D)  A subcontractor or materials supplier who serves a      64           

notice of furnishing under division (C) of this section as         65           

required to exercise rights under this section has the right of    66           

recovery only as to amounts owed for labor and work performed and  67           

materials furnished during and after the twenty-one days           68           

immediately preceding service of the notice of furnishing.         69           

      (E)  For purposes of this section, "principal contractor"    72           

has the same meaning as in section 1311.25 of the Revised Code.    73           

      Section 2.  That existing section 153.56 of the Revised      75           

Code is hereby repealed.                                           76