CROSS TESTIFIES ON BIPARTISAN HOUSE BILL 68

COLUMBUS – State Rep. Jon Cross (R-Kenton) yesterday testified on House Bill 68, his bipartisan legislation that ensures prime contractors are paid promptly and construction projects can move forward across the State of Ohio.

“As an economic development professional, I understand how important this bill is to Ohio,” said Cross. “We are sending a signal to developers coming into Ohio that we are a business-friendly state but we need to protect our contractors.”

Joint-sponsored with State Rep. Bride Rose Sweeney (D-Cleveland), the proposal is a reintroduction of House Bill 380 from the 133rd General Assembly. It would require private sector owners of construction projects to provide payment to the prime contractors no more than 30 days after the prime contractors provide invoices to the owners.

“Many Ohio contractors have to wait months just to receive payment for their work,” said Sweeney. “Hardworking Ohioans shouldn’t have to dip into their lifesavings or put their payroll on credit cards just to do their job. This bipartisan bill will keep construction projects moving and protect Ohio jobs.”

Ohio law already requires the following timetable for payments, and H.B. 68 would close the highlighted loophole:

-Public Construction Projects

Owner to Prime – 30 days after invoice unless otherwise agreed (R.C. 126.30 and 153.14)
Prime to Sub – 10 days after prime contractor receives payment from owners (R.C. 4113.61)
Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

-Private Construction Projects

Owner to Prime – No Provision
Prime to Sub – 10 days after prime contractor receives payment from owner (R.C. 4113.61)
Sub to Lower Tiers – 10 days after subcontractor receives payment from prime contractor (R.C. 4113.61)

H.B. 68 awaits further hearings in the House Commerce and Labor Committee.