House Committee Passes Prompt Pay Legislation
COLUMBUS –House Bill 203, which will require owners of private sector construction projects to pay prime contractors in 30 days or less after the project is accepted and invoices are provided, passed the House Commerce and Labor Committee 10-3. Bill sponsors, State Reps. Bill Roemer (R-Richfield) and Bride Rose Sweeney (D-Westlake) were pleased to see the strong bipartisan support from the committee.
The “prompt pay” requirement is already in place for public sector owners, such as state and local governments. House Bill 203 addresses the imbalance in the private sector and ensures that all parties on a construction project are paid in a reasonable timeframe.
“House Bill 203 is a pro-business and pro-worker bill that ensures a level playing field for hardworking Ohioans and will keep construction projects moving in a timely fashion,” said Roemer. “This provision will increase Ohio’s economic competitiveness to keep up with the 29 other states that already have similar prompt pay laws on the books.”
“Some Ohio contractors have to wait 60, 90, or even 150 days to receive payment after they finish a construction project. Hardworking Ohioans shouldn’t have to dip into their personal savings or retirement funds just to do their job,” said Sweeney. “House Bill 203 will help ensure that workers are paid on time, and construction projects keep moving forward in the Buckeye State.”
House Bill 203 awaits a vote on the House floor.