130th Ohio General Assembly
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(123rd General Assembly)
(Substitute House Bill Number 490)

To amend section 153.56 of the Revised Code to clarify the provisions pertaining to the time period within which a lawsuit must be brought to recover money due to any person for labor or work performed or materials furnished in a public improvement project.

Be it enacted by the General Assembly of the State of Ohio:

SECTION 1 .  That section 153.56 of the Revised Code be amended to read as follows:

Sec. 153.56.  (A) Any person to whom any money is due for labor or work performed or materials furnished in a public improvement as provided in section 153.54 of the Revised Code, at any time after performing the labor or work or furnishing the materials, but not later than ninety days after the completion of the contract by the principal contractor and the acceptance of the public improvement for which the bond was provided by the duly authorized board or officer, shall furnish the sureties on the bond, a statement of the amount due to the person.

(B) A suit shall not be brought against sureties on the bond until after sixty days after the furnishing of the statement described in division (A) of this section. If the indebtedness is not paid in full at the expiration of that sixty days, and if the person complies with division (C) of this section, the person may bring an action in the person's own name upon the bond, as provided in sections 2307.06 and 2307.07 of the Revised Code, that action to be commenced, notwithstanding section 2305.12 of the Revised Code, not later than one year from the date of acceptance of the public improvement for which the bond was provided.

(C) To exercise rights under this section, a subcontractor or materials supplier supplying labor or materials that cost more than thirty thousand dollars, who is not in direct privity of contract with the principal contractor for the public improvement, shall serve a notice of furnishing upon the principal contractor in the form provided in section 1311.261 of the Revised Code.

(D) A subcontractor or materials supplier who serves a notice of furnishing under division (C) of this section as required to exercise rights under this section has the right of recovery only as to amounts owed for labor and work performed and materials furnished during and after the twenty-one days immediately preceding service of the notice of furnishing.

(E) For purposes of this section, "principal contractor" has the same meaning as in section 1311.25 of the Revised Code.

SECTION 2 .  That existing section 153.56 of the Revised Code is hereby repealed.

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