Ohio districts would be barred from accepting certain contract terms

The bill would bar certain terms in district goods and services contracts. This covers contracts that Ohio conservancy districts enter to buy goods or services. The barred terms include certain duties to cover another party’s losses, out-of-state court locations, limits on district liability, and unclear or one-sided terms. They also include terms that conflict with public-records duties or limit recovery of replacement contractor costs. State or federal law may require or permit a term otherwise barred by this section. The rule would apply starting on the section’s effective date, which the text does not state.

A barred term would have no legal effect, while the rest of the contract would remain enforceable. This applies when a covered contract contains a term barred by the bill. This section would not apply to contracts already in effect before its effective date, or to their renewals or extensions. The exemption covers contracts in effect before the section’s effective date, including their later renewals or extensions.