House Moves Harmful Contract Bill Out of Committee

05/07/2021

This week, the Ohio House Commerce and Labor Committee unanimously moved House Bill 68 out of committee despite the objections of the OMA, Ohio Council of Retail Merchants, and the Ohio Hospital Association. The bill would erode the right of parties to freely negotiate contracts, and would instead require government to dictate certain payment terms to private parties in construction contracts. The bill would also require parties to pay construction contracts within 30 days, regardless of the negotiated contract terms. If an entity failed to pay, it would be subject to exorbitant penalty and attorney’s fees. The OMA previously testified in opposition to the bill, stressing there was no need for such a change and the bill was an about-face on free-market contracting. The OMA will continue to oppose the measure as it moves through the legislative process. 5/6/2021

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