OSCPA staff report
The House on Nov. 19 unanimously passed HB251 (Lang-Hillyer), which shortens the statute of limitations of actions on written and oral contracts to six years and four years, respectively.
The Ohio Alliance for Civil Justice, a large business coalition in which OSCPA is a leader, testified in favor of the measure in June.
“This bill is about providing certainty for business owners,” said Chris Ferruso, legislative director - Ohio for the National Federation of Independent Business on behalf of the alliance.
“Currently, a business owner must maintain documents and records pertaining to a written contract for eight years. This bears a very real expense. With the increase in technology and more sophisticated monitoring of contractual relationships, there is no reason to maintain these records for such a long duration. Furthermore, reducing the duration of the contract will allow the business owner to move to future projects with the certainty that the previous contract is not hanging over the business owner.”
Ferruso said the bill is a “low-risk” way to help Ohio remain competitive with neighboring states.
“In CNBCs “America’s Top States for Business” for 2018, Ohio achieved a number 15 ranking. There are a variety of factors used to make these rankings. However, it is important to note that every state with a superior ranking to Ohio has a statute of limitations on a written contract less than Ohio’s.”
The bill now moves to the Ohio Senate for consideration.