Senate Bill 49, Sponsor Testimony — Senator Jay Hottinger and Senator Vernon Sykes (May 19, 2021)

Summary

Sponsor testimony on Senate Bill 49 from Senators Jay Hottinger and Vernon Sykes to the House Commerce and Labor Committee, dated May 19, 2021. It states the legislation would establish a payment assurance program for registered design professionals, who include architects, landscape architects, engineers and surveyors. The testimony says a design professional cannot file a mechanics' lien and that the bill would create a design professional lien right modeled after the brokers' lien. It says the lien would apply only to commercial property and private work, and would be subordinate to any real estate mortgage previously filed. The testimony states the bill passed the Senate unanimously and that the sponsors are not aware of any opposition.

Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used

Full text

Senator Jay Hottinger                                          Senator Vernon Sykes
President Pro Tempore                                                    Senate District 28
Senate District 31




                           Senate Bill 49, Sponsor Testimony
                         House Commerce and Labor Committee
                                      May 19, 2021

  Chairman Stein, Vice-Chairman Johnson, Ranking Member Lepore-Hagan and
  members of the House Commerce and Labor Committee, thank you for the opportunity
  to provide sponsor testimony on Senate Bill 49.

  This legislation would establish a payment assurance program for registered design
  professionals. Design professionals include architects, landscape architects, engineers
  and surveyors. Design professionals who work in the construction industry currently
  have limited options when a commercial real estate owner does not pay for plans or
  specifications that they have created. It is unfair to them when an owner goes forward
  with construction without first compensating for the design work. Unlike construction
  contractors, the work of design professional does not improve the physical real estate,
  and therefore a design professional cannot file a mechanics’ lien. Ohio is one of the only
  states that does not offer alternative payment protection for design professionals.

  This bill would create a design professional lien right modeled after the brokers’ lien
  (House Bill 510, 129th G.A.). The provisions would be identical for each of the design
  professionals and would not be included in Ohio’s mechanics’ lien law. In order to avoid
  any conflict, mechanics’ liens will always take precedence over a design professional’s
  lien, regardless of filing date.

  The design professional lien will:
      Apply only to commercial property, and not to residential property;
      Apply only to private work, and not to public construction; and
      Will be subordinate to any real estate mortgage previously filed.

  The intent of this legislation is to give design professionals leverage over private,
  commercial real estate owners under contract with a design professional to pay for
  plans and specifications.
Thank you again for allowing us to give sponsor testimony on Senate Bill 49. This bill
passed the Senate unanimously, and we are not aware of any opposition. We would be
happy to answer any questions the committee may have.


File and source

File

2021-05-19_commerce-labor_testimony_hottingersykessb49sponsor.pdf

Size

109,514 bytes

SHA-256

17913e6468e849df1e3ddd8cf8de5b7bd93846382ec8307adf46f3bdff4d5fdf

Our copy

2021-05-19_commerce-labor_testimony_hottingersykessb49sponsor.pdf

Original

No public link identified.