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AN ACT REVISING LAWS RELATED TO CONSTRUCTION CONTRACTORS; TRANSFERRING
CONSTRUCTION CONTRACTOR REGISTRATION TO A DEPARTMENT LICENSING PROGRAM;
PROVIDING A PURPOSE; PROVIDING DEFINITIONS; PROVIDING RULEMAKING AUTHORITY;
PROVIDING LICENSING REQUIREMENTS; PROVIDING FOR UNPROFESSIONAL CONDUCT; PROVIDING
FOR FEES AND FINES; PROVIDING FOR PENALTIES FOR VIOLATIONS; AMENDING SECTIONS 18-2-
413, 18-2-414, 37-1-401, 39-9-101, 39-9-102, 39-9-206, 39-9-207, 39-9-301, 39-9-303, AND 39-71-401, MCA;
REPEALING SECTIONS 39-9-201 AND 39-9-204, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.”
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1.
welfare of the public through the regulation of construction contractors.
Section 2. As used in [sections 1 through 8], the following definitions apply:
(1) “Construction contractor” means, except as provided in 39-9-211, a person, firm, or corporation
that:
(a) in the pursuit of an independent business, offers to undertake, undertakes, or submits a bid to
construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish for another a building,
highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real
estate, including the installation of carpeting or other floor covering, the erection of scaffolding or other
structures or works, or the installation or repair of roofing or siding; or
(b) in order to do work similar to that described in subsection (1)(a) upon the construction
contractor’s property, employs members of more than one trade on a single job or under a single building
permit, except as otherwise provided. - 2025
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(2) “Department” means the department of labor and industry provided for in Title 2, chapter 15,
part 17.
Section 3. The department may adopt rules necessary to implement
[sections 1 through 8].
Section 4. (1) An individual or business
entity may not engage in business as a construction contractor without a current license from the department.
The license must include the following information:
(a) the applicant’s social security number;
(b) proof of compliance with workers' compensation laws;
(c) the internal revenue service employer identification number, if any; and
(d) the name and address of:
(i) each partner if the applicant is a firm or partnership;
(ii) the owner if the applicant is an individual partnership;
(iii) the corporate officers and registered agent if the applicant is a corporation; or
(iv) the manager of a manager-managed limited liability company or the members of a member-
managed limited liability company and the registered agent if the applicant is a limited liability company.
(2) Section 37-1-137 applies to all persons listed in subsection (1)(d) of this section.
Section 5. A person who, pursuant to an oral or written contract,
engages a construction contractor who is licensed under [sections 1 through 8] on the date of the contract is not
liable as an employer for workers' compensation coverage under 39-71-405, for unemployment insurance
coverage, or for wages and fringe benefits for:
(1) the licensed construction contractor;
(2) the employees of the licensed construction contractor; or
(3) a subsequent subcontractor or the employees of a subsequent subcontractor engaged to fulfill
a part of or all the obligations of the oral or written contract of the licensed construction contractor listed in - 2025
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subsection (1).
Section 6. (1) Each applicant for a construction contractor license
shall pay an application fee established by the department.
(2) The fees collected under [sections 1 through 8] in accordance with 37-1-134 must be deposited
in a special revenue account for administration and enforcement of [sections 1 through 8].
(3) The department shall provide, in cooperation with building industry stakeholders, a program to
educate consumers and the building industry about construction contractor licensing requirements.
(4) A fine collected from a construction contractor under 37-1-109 or 37-1-406 must be deposited
in the uninsured employers' fund established in 39-71-503.
Section 7. (1) The following is unprofessional
conduct for a construction contractor licensee, a license applicant, or on behalf of the licensee as an individual
listed in [section 4(1)(d)]:
(a) fraud, misrepresentation, deception, or concealment of a material fact in:
(i) applying for or assisting in securing a license or license renewal;
(ii) advertising;
(iii) written communications with a client; or
(iv) a contract, written contract negotiations, or in written communications with a person with whom
the licensee has a contract;
(b) misappropriating funds from a client;
(c) interference with an investigation into a construction contractor license by the department by:
(i) failure to respond or cooperate with requests from the department;
(ii) willful misrepresentation of facts relevant to the investigation; or
(iii) use of threats or harassment against a client or witness to prevent the client or witness from
providing evidence to the department;
(d) hiring or classifying a person as an independent contractor if:
(i) the person does not have an independent contractor exemption certificate if required by 39-71- - 2025
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417;
(ii) the department has suspended, revoked, or denied the person's independent contractor
exemption certificate; or
(iii) the person is hired to work in a trade, business, occupation, or profession that is not listed on
the independent contractor exemption certificate;
(e) allowing an independent contractor to perform work not in the trade, business, occupation, or
profession listed on their independent contractor exemption certificate; or
(f) failing to comply with:
(i) the Workers' Compensation Act, Title 39, chapter 71;
(ii) the Unemployment Insurance Law, Title 39, chapter 51; or
(iii) the wage payment, minimum wage, and overtime payment provisions of Title 39, chapter 3.
(2) (a) Failure to comply with the provisions of this section constitutes unprofessional conduct, and
the provisions of 37-1-402 apply. The provisions of 37-1-410 do not apply to a construction contractor license or
license applicant under [sections 1 through 8].
(b) The department may adopt additional unprofessional conduct standards by rule.
Section 8. (1) In addition to the penalties provided
in 37-1-406, a determination by the department of unprofessional conduct under [section 7] subjects the person
who commits the violation to:
(a) a penalty of up to $5,000, as determined by the department; and
(b) a suspension or debarment of rights to public works contracts.
(2) A penalty collected under this section must be deposited in the uninsured employers' fund
established in 39-71-503.
Section 9. Section 18-2-413, MCA, is amended to read:
"18-2-413. (1) The
department shall conduct an annual survey to calculate the standard prevailing rate of wages for building
construction services using the process described in this section. - 2025
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(2) The standard prevailing wage rates adopted under subsection (1) must be set for the districts
established pursuant to 18-2-411.
(3) The department shall survey:
(a) electrical contractors who are licensed under Title 37, chapter 68, who perform commercial
work;
(b) plumbers who are licensed under Title 37, chapter 69, whose work is performed according to
commercial building codes; and
(c) construction contractors registered under Title 39, chapter 9 [sections 1 through 8], whose work
is performed according to commercial building codes.
(4) The surveys required under subsection (3) must include those wages, including fringe benefits
plus zone pay, per diem, and travel allowances if applicable, that are paid in the applicable district by other
contractors for work of a similar character performed in that district by each craft, classification, or type of
worker needed to complete a contract under this part.
(5) (a) The contractor survey must include information pertaining to the number of skilled workers
employed in the contractor's peak month of employment and the wages and fringe benefits paid for each craft,
classification, or type of work.
(b) (i) In setting the prevailing wages from the survey for each craft, classification, or type of work,
the department shall use a weighted average wage for each craft, classification, or type of work, except in those
cases in which the survey shows that at least 50% of the skilled workers are receiving the same wage.
(ii) If the survey shows that at least 50% of the skilled workers are receiving the same wage, then
the higher of the collective bargaining agreement rate or the surveyed rate is the prevailing wage for that craft,
classification, or type of work.
(c) (i) In setting the prevailing fringe benefits from the survey for each craft, classification, or type
of work, the department shall use a weighted average fringe benefit for each craft, classification, or type of
work, except in those cases in which the survey shows that at least 50% of the skilled workers are receiving
fringe benefits pursuant to a collective bargaining agreement or pursuant to an employer's fringe benefit fund,
plan, or program that meets the requirements of the Employment Retirement Income Security Act of 1974 or
that is approved by the U.S. department of labor. - 2025
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(ii) If the survey shows that at least 50% of the skilled workers are receiving fringe benefits
pursuant to a collective bargaining agreement or pursuant to an employer's fringe benefit fund, plan, or program
that meets the requirements of the Employment Retirement Income Security Act of 1974 or that is approved by
the U.S. department of labor, the higher of fringe benefits received under collective bargaining agreements and
employers' fringe benefit funds, plans, or programs is the prevailing fringe benefit for that craft, classification, or
type of work.
(6) The work performed must be work of a similar character to the work performed in the
applicable district unless the survey in the applicable district does not generate sufficient data. If the survey
produces insufficient data, the rate may be established by the use of other information or methods that the
commissioner determines fairly establish the standard prevailing rate of wages.
(7) (a) The commissioner shall establish by rule the methodology for determining the standard
prevailing rate of wages. The rules must include an alternate methodology to determine the standard prevailing
rate of wages whenever insufficient data is generated by the survey of contractors in the applicable district. The
rules must identify the amount of data that constitutes insufficient data.
(b) The commissioner shall use an alternate methodology provided by rule to determine the
standard prevailing rate of wages whenever insufficient data exists.
(c) The alternative method of determining the prevailing rate of wages must provide for review and
the incorporation of data from work of a similar character, which must be based on a survey that is conducted
as closely as possible to the original district.
(8) Whenever work of a similar character is not being performed in the district, the standard
prevailing rate of wages, including fringe benefits and the rate of travel allowance, must be those rates
established by collective bargaining agreements in effect in the applicable district for each craft, classification,
or type of skilled worker needed to complete the contract."
Section 10. Section 18-2-414, MCA, is amended to read:
"18-2-414.
construction services -- definition. (1) The department shall establish the standard prevailing rate of wages
for heavy construction services and for highway construction services annually. - 2025
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(2) In establishing the standard prevailing rate of wages for heavy construction services and for
highway construction services, the department may:
(a) conduct a survey of construction contractors registered under Title 39, chapter 9 [sections 1
through 8], who perform heavy construction services or highway construction services, electrical contractors
licensed under Title 37, chapter 68, who perform commercial work, or plumbers licensed under Title 37, chapter
69, whose work is performed according to commercial building codes;
(b) adopt by reference through rulemaking the rates established by the U.S. department of labor
under the federal Davis-Bacon Act, 29 CFR 1, et seq., for projects in Montana; or
(c) use, as provided by rule, a combination of surveyed rates, as provided in subsection (2)(a), and
rates adopted by reference, as provided in subsection (2)(b).
(3) For the purposes of this section, the term "standard prevailing rate of wages for heavy
construction services and for highway construction services" means wage rates, including fringe benefits plus
zone pay, per diem, and travel allowances, if applicable, that are determined and established statewide for
heavy construction projects and highway construction projects. The department may define by rule the terms
heavy construction projects and highway construction projects. The definitions of heavy construction projects
and highway construction projects must include but are not limited to projects the same as or similar to the
construction, alteration, or repair of roads, streets, highways, alleys, runways, airport runways and ramps,
dams, powerhouses, canals, channels, pipelines, parking areas, utility rights-of-way, staging yards located on
or off the right-of-way, or new or reopened pits that produce aggregate, asphalt, concrete, or backfill when the
pit does not normally sell to the general public."
Section 11. Section 37-1-401, MCA, is amended to read:
"37-1-401.
definitions. As used in this part, the following definitions apply:
(1) "Complaint" means a written allegation filed with the department that, if true, warrants an
injunction, disciplinary action against a licensee, or denial of an application submitted by a license applicant.
(2) "Department" means the department of labor and industry provided for in 2-15-1701.
(3) "Investigation" means the inquiry, analysis, audit, or other pursuit of information by the - 2025
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department, with respect to a complaint or other information before the department, that is carried out for the
purpose of determining:
(a) whether a person has violated a provision of law justifying discipline against the person;
(b) the status of compliance with a stipulation or order of the department;
(c) whether a license should be granted, denied, or conditionally issued; or
(d) whether the department should seek an injunction.
(4) "License" means permission in the form of a license, permit, endorsement, certificate,
recognition, or registration granted by the state of Montana to engage in a business activity or practice at a
specific level in a profession or occupation governed by:
(a) Title 37, chapter 2, part 6;
(b) Title 37, chapter 16, 40, 56, 60, 72, or 73, or [sections 1 through 8]; or
(c) Title 50, chapter 39, 74, or 76.
(5) "Profession" or "occupation" means a profession or occupation regulated by the department
under the provisions of:
(a) Title 37, chapter 2, part 6;
(b) Title 37, chapter 16, 40, 49, 56, 60, 72, or 73, or [sections 1 through 8]; or
(c) Title 50, chapter 39, 74, or 76. (Terminates June 30, 2031--sec. 10, Ch. 628, L. 2023.)
37-1-401.
definitions. As used in this part, the following definitions apply:
(1) "Complaint" means a written allegation filed with the department that, if true, warrants an
injunction, disciplinary action against a licensee, or denial of an application submitted by a license applicant.
(2) "Department" means the department of labor and industry provided for in 2-15-1701.
(3) "Investigation" means the inquiry, analysis, audit, or other pursuit of information by the
department, with respect to a complaint or other information before the department, that is carried out for the
purpose of determining:
(a) whether a person has violated a provision of law justifying discipline against the person;
(b) the status of compliance with a stipulation or order of the department;
(c) whether a license should be granted, denied, or conditionally issued; or - 2025
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(d) whether the department should seek an injunction.
(4) "License" means permission in the form of a license, permit, endorsement, certificate,
recognition, or registration granted by the state of Montana to engage in a business activity or practice at a
specific level in a profession or occupation governed by:
(a) Title 37, chapter 16, 40, 56, 60, 72, or 73, or [sections 1 through 8]; or
(b) Title 50, chapter 39, 74, or 76.
(5) "Profession" or "occupation" means a profession or occupation regulated by the department
under the provisions of:
(a) Title 37, chapter 16, 40, 49, 56, 60, 72, or 73, or [sections 1 through 8]; or
(b) Title 50, chapter 39, 74, or 76."
Section 12. Section 39-9-101, MCA, is amended to read:
"39-9-101. It is the purpose of this chapter to ensure that all construction contractors and
home inspectors are competing fairly and in compliance with state laws."
Section 13. Section 39-9-102, MCA, is amended to read:
"39-9-102. As used in this chapter, the following definitions apply:
(1) "Construction contractor" means a person, firm, or corporation that:
(a) in the pursuit of an independent business, offers to undertake, undertakes, or submits a bid to
construct, alter, repair, add to, subtract from, improve, move, wreck, or demolish for another a building,
highway, road, railroad, excavation, or other structure, project, development, or improvement attached to real
estate, including the installation of carpeting or other floor covering, the erection of scaffolding or other
structures or works, or the installation or repair of roofing or siding; or
(b) in order to do work similar to that described in subsection (1)(a) upon the construction
contractor's property, employs members of more than one trade on a single job or under a single building
permit, except as otherwise provided.
(2)(1) "Department" means the department of labor and industry.
(3)(2) (a) "Home inspection" means a physical examination of a residential dwelling to identify major - 2025
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defects in various attributes of or attachments to the dwelling, including mechanical, electrical, and plumbing
systems in addition to structural and other essential components. Home inspections are performed for
compensation and employ visual observation and the testing of user controls but not mathematical or
specialized engineering sciences.
(b) The term does not mean a physical examination of a residential dwelling when the owner or a
representative of the owner requests the examination by an individual who is licensed, certified, or registered in
this state and who is acting within the scope of practice of the individual's profession or occupation.
(4)(3) "Home inspection report" means a written document prepared by a home inspector for a client
and issued to the client in exchange for compensation after a home inspection has been completed. The report
must clearly identify and describe:
(a) the inspected systems, structures, and other relevant components of the dwelling;
(b) any major visible defects in the inspected systems, structures, and other relevant components
of the dwelling; and
(c) any recommendations for further evaluation of the property by other appropriate persons.
(5)(4) "Home inspector" means a person who performs a home inspection for compensation."
Section 14. Section 39-9-206, MCA, is amended to read:
"39-9-206. (1) The department shall charge fees to construction
contractors and home inspectors for:
(a) issuance, renewal, and reinstatement of certificates of registration; and
(b) change of name, address, or business structure.
(2) The department shall set the fees by administrative rule. The fees must cover the full cost of
issuing certificates, filing papers and notices, and administering and enforcing this chapter. The costs include
reproduction, travel, per diem, and administrative and legal support costs.
(3) The fees charged in subsection (1)(a) may not exceed:
(a) for a construction contractor:
(i) $70 for the initial registration certificate; or
(ii) $70 for the renewal or reinstatement of a registration certificate; or - 2025
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(b) for a home inspector, an amount determined in rule for the initial registration certificate or for
the renewal or reinstatement of a registration certificate.
(4) The fees collected under this section must be deposited in a state special revenue account to
the credit of the department for the administration and enforcement of this chapter and independent contractor
certification provided for in Title 39, chapter 71, part 4.
(5) The department shall establish, cooperatively with representatives of the building industry and
the home inspection industry, an industry and consumer information program, funded with 15% of the fees, to
educate the building industry and home inspectors about the registration requirements and to educate the
public regarding the hiring of building construction contractors and home inspectors.
(6) The fee for a joint application for a certificate of registration and an independent contractor
exemption certificate may not exceed the total fee charged for a certificate of registration and an independent
contractor exemption certificate that are obtained separately. The fee paid for the independent contractor
exemption certificate may be used by the department to offset the cost of administering independent contractor
certification provided for in Title 39, chapter 71, part 4."
Section 15. Section 39-9-207, MCA, is amended to read:
"39-9-207.
engages a construction contractor or a home inspector who is registered under this chapter on the date of the
contract is not liable as an employer for workers' compensation coverage under 39-71-405, for unemployment
insurance coverage, or for wages and fringe benefits for:
(1) the registered construction contractor or home inspector;
(2) the employees of the registered construction contractor or home inspector; or
(3) any subsequent subcontractor or the employees of any subsequent subcontractor engaged to
fulfill a part of or all of the obligations of the oral or written contract of the registered construction contractor or
home inspector listed in subsection (1)."
Section 16. Section 39-9-301, MCA, is amended to read:
"39-9-301. (1) Except as provided in 39-9-205, a A person who has - 2025
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registered under one name as provided in this chapter may not engage in the business or act in the capacity of
a construction contractor or a home inspector under any other name unless that name also is registered under
this chapter.
(2) Use of a falsified registration number in connection with a solicitation or identification as a
construction contractor or a home inspector is prohibited.
(3) A partner, associate, agent, salesperson, solicitor, officer, or employee of a construction
contractor or a home inspector shall use a true name and address at all times while engaged in the business or
capacity of a construction contractor or a home inspector or in activities related to a construction contractor or a
home inspector.
(4) A construction contractor may not:
(a) hire a person as an independent contractor who does not have an independent contractor
exemption certificate if required by 39-71-417;
(b) hire a person as an independent contractor if the department has suspended, revoked, or
denied the person's independent contractor's exemption certificate;
(c) hire an independent contractor to work in a trade, business, occupation, or profession not listed
on the independent contractor's registration;
(d) allow an independent contractor to perform work not in the trade, business, occupation, or
profession listed on the independent contractor exemption certificate; or
(e) classify an employee as an independent contractor if the person does not have an independent
contractor exemption certificate required by 39-71-417.
(5)(4) (a) The finding of a violation of this section by the department at a hearing held in accordance
with the Montana Administrative Procedure Act subjects the person who commits the violation to a penalty of
not more than $5,000, as determined by the department. The required hearing may be held by telephone or by
videoconference. A penalty collected under this section must be deposited in the state special revenue account
to the credit of the department for administration and enforcement of this chapter.
(b) Penalties under this section do not apply to a violation that is determined to be an inadvertent
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Section 17. Section 39-9-303, MCA, is amended to read:
"39-9-303.
department shall compile a list of all construction contractors and home inspectors registered under this chapter
and update the list of construction contractors at least bimonthly and the list of home inspectors as provided by
rule. The list is public information and must be available to the public upon request for a reasonable fee or
posted on the department's website.
(2) The department shall inform a person, firm, or corporation whether a construction contractor or
a home inspector is registered. The department shall provide the information without charge, except for a
reasonable fee for any copies made."
Section 18. Section 39-71-401, MCA, is amended to read:
"39-71-401. (1) Except as provided
in subsection (2), the Workers' Compensation Act applies to all employers and to all employees. An employer
who has any employee in service under any appointment or contract of hire, expressed or implied, oral or
written, shall elect to be bound by the provisions of compensation plan No. 1, 2, or 3 unless the provisions of
39-71-442 apply. Each employee whose employer is bound by the Workers' Compensation Act is subject to
and bound by the compensation plan that has been elected by the employer.
(2) Unless the employer elects coverage for these employments under this chapter and an insurer
allows an election, the Workers' Compensation Act does not apply to any of the following:
(a) household or domestic employment;
(b) casual employment;
(c) employment of a dependent member of an employer's family for whom an exemption may be
claimed by the employer under the federal Internal Revenue Code;
(d) employment of sole proprietors, working members of a partnership, working members of a
limited liability partnership, or working members of a member-managed limited liability company, except as
provided in subsection (3);
(e) employment of a real estate, securities, or insurance salesperson paid solely by commission
and without a guarantee of minimum earnings; - 2025
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(f) employment as a direct seller as defined by 26 U.S.C. 3508;
(g) employment for which a rule of liability for injury, occupational disease, or death is provided
under the laws of the United States;
(h) employment of a person performing services in return for aid or sustenance only, except
employment of a volunteer under 67-2-105;
(i) employment with a railroad engaged in interstate commerce, except that railroad construction
work is included in and subject to the provisions of this chapter;
(j) employment as an official, including a timer, referee, umpire, or judge, at an amateur athletic
event;
(k) employment of a person performing services as a newspaper carrier or freelance
correspondent if the person performing the services or a parent or guardian of the person performing the
services in the case of a minor has acknowledged in writing that the person performing the services and the
services are not covered. As used in this subsection (2)(k):
(i) "freelance correspondent" means a person who submits articles or photographs for publication
and is paid by the article or by the photograph; and
(ii) "newspaper carrier":
(A) means a person who provides a newspaper with the service of delivering newspapers singly or
in bundles; and
(B) does not include an employee of the paper who, incidentally to the employee's main duties,
carries or delivers papers.
(l) cosmetologist's services and barber's services as referred to in 39-51-204(1)(e);
(m) a person who is employed by an enrolled tribal member or an association, business,
corporation, or other entity that is at least 51% owned by an enrolled tribal member or members, whose
business is conducted solely within the exterior boundaries of an Indian reservation;
(n) employment of a jockey who is performing under a license issued by the board of horseracing
from the time that the jockey reports to the scale room prior to a race through the time that the jockey is
weighed out after a race if the jockey has acknowledged in writing, as a condition of licensing by the board of
horseracing, that the jockey is not covered under the Workers' Compensation Act while performing services as - 2025
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a jockey;
(o) employment of a trainer, assistant trainer, exercise person, or pony person who is performing
services under a license issued by the board of horseracing while on the grounds of a licensed race meet;
(p) employment of an employer's spouse for whom an exemption based on marital status may be
claimed by the employer under 26 U.S.C. 7703;
(q) a person who performs services as a petroleum land professional. As used in this subsection, a
"petroleum land professional" is a person who:
(i) is engaged primarily in negotiating for the acquisition or divestiture of mineral rights or in
negotiating a business agreement for the exploration or development of minerals;
(ii) is paid for services that are directly related to the completion of a contracted specific task rather
than on an hourly wage basis; and
(iii) performs all services as an independent contractor pursuant to a written contract.
(r) an officer of a quasi-public or a private corporation or, except as provided in subsection (3), a
manager of a manager-managed limited liability company who qualifies under one or more of the following
provisions:
(i) the officer or manager is not engaged in the ordinary duties of a worker for the corporation or
the limited liability company and does not receive any pay from the corporation or the limited liability company
for performance of the duties;
(ii) the officer or manager is engaged primarily in household employment for the corporation or the
limited liability company;
(iii) the officer or manager either:
(A) owns 10% or more of the number of shares of stock in the corporation or owns 10% or more of
the limited liability company; or
(B) owns less than 10% of the number of shares of stock in the corporation or limited liability
company if the officer's or manager's shares when aggregated with the shares owned by a person or persons
listed in subsection (2)(r)(iv) total 10% or more of the number of shares in the corporation or limited liability
company; or
(iv) the officer or manager is the spouse, child, adopted child, stepchild, mother, father, son-in-law, - 2025
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daughter-in-law, nephew, niece, brother, or sister of a corporate officer who meets the requirements of
subsection (2)(r)(iii)(A) or (2)(r)(iii)(B);
(s) a person who is an officer or a manager of a ditch company as defined in 27-1-731;
(t) service performed by an ordained, commissioned, or licensed minister of a church in the
exercise of the church's ministry or by a member of a religious order in the exercise of duties required by the
order;
(u) service performed to provide companionship services, as defined in 29 CFR 552.6, or respite
care for individuals who, because of age or infirmity, are unable to care for themselves when the person
providing the service is employed directly by a family member or an individual who is a legal guardian;
(v) employment of a person performing the services of an intrastate or interstate common or
contract motor carrier when hired by an individual or entity who meets the definition of a broker or freight
forwarder, as provided in 49 U.S.C. 13102;
(w) employment of a person who is not an employee or worker in this state as defined in 39-71-
118(8);
(x) employment of a person who is working under an independent contractor exemption certificate;
(y) employment of an athlete by or on a team or sports club engaged in a contact sport. As used in
this subsection, "contact sport" means a sport that includes significant physical contact between the athletes
involved. Contact sports include but are not limited to football, hockey, roller derby, rugby, lacrosse, wrestling,
and boxing.
(z) a musician performing under a written contract.
(3) (a) (i) A person who regularly and customarily performs services at locations other than the
person's own fixed business location shall elect to be bound personally and individually by the provisions of
compensation plan No. 1, 2, or 3 unless the person has waived the rights and benefits of the Workers'
Compensation Act by obtaining an independent contractor exemption certificate from the department pursuant
to 39-71-417.
(ii) Application fees or renewal fees for independent contractor exemption certificates must be
deposited in the state special revenue account established in 39-9-206 39-71-417 and must be used to offset
the certification administration costs. - 2025
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(b) A person who holds an independent contractor exemption certificate may purchase a workers'
compensation insurance policy and with the insurer's permission elect coverage for the certificate holder.
(c) For the purposes of this subsection (3), "person" means:
(i) a sole proprietor;
(ii) a working member of a partnership;
(iii) a working member of a limited liability partnership;
(iv) a working member of a member-managed limited liability company; or
(v) a manager of a manager-managed limited liability company that is engaged in the work of the
construction industry as defined in 39-71-116.
(4) (a) A corporation or a manager-managed limited liability company shall provide coverage for its
employees under the provisions of compensation plan No. 1, 2, or 3. A quasi-public corporation, a private
corporation, or a manager-managed limited liability company may elect coverage for its corporate officers or
managers, who are otherwise exempt under subsection (2), by giving a written notice in the following manner:
(i) if the employer has elected to be bound by the provisions of compensation plan No. 1, by
delivering the notice to the board of directors of the corporation or to the management organization of the
manager-managed limited liability company; or
(ii) if the employer has elected to be bound by the provisions of compensation plan No. 2 or 3, by
delivering the notice to the board of directors of the corporation or to the management organization of the
manager-managed limited liability company and to the insurer.
(b) If the employer changes plans or insurers, the employer's previous election is not effective and
the employer shall again serve notice to its insurer and to its board of directors or the management organization
of the manager-managed limited liability company if the employer elects to be bound.
(5) The appointment or election of an employee as an officer of a corporation, a partner in a
partnership, a partner in a limited liability partnership, or a member in or a manager of a limited liability
company for the purpose of exempting the employee from coverage under this chapter does not entitle the
officer, partner, member, or manager to exemption from coverage.
(6) Each employer shall post a sign in the workplace at the locations where notices to employees
are normally posted, informing employees about the employer's current provision of workers' compensation - 2025
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insurance. A workplace is any location where an employee performs any work-related act in the course of
employment, regardless of whether the location is temporary or permanent, and includes the place of business
or property of a third person while the employer has access to or control over the place of business or property
for the purpose of carrying on the employer's usual trade, business, or occupation. The sign must be provided
by the department, distributed through insurers or directly by the department, and posted by employers in
accordance with rules adopted by the department. An employer who purposely or knowingly fails to post a sign
as provided in this subsection is subject to a $50 fine for each citation."
Section 19. The following sections of the Montana Code Annotated are repealed:
39-9-201. Registration required -- application.
39-9-204. Certificate of registration -- issuance -- duration.
Section 20. Sections 39-9-205, 39-9-211, and 39-9-304 are
intended to be renumbered and codified in a new chapter of Title 37 with [sections 1 through 8].
Section 21. [Sections 1 through 8] are intended to be codified as a new
chapter in Title 37, and the provisions of Title 37 apply to [sections 1 through 8].
Section 22. [This act] is effective January 1, 2026.
- END - I hereby certify that the within bill,
HB 239, originated in the House.
___________________________________________
Chief Clerk of the House
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025. HOUSE BILL NO. 239
INTRODUCED BY M. THIEL, E. TILLEMAN, S. GIST, B. LER, G. OBLANDER
AN ACT REVISING LAWS RELATED TO CONSTRUCTION CONTRACTORS; TRANSFERRING
CONSTRUCTION CONTRACTOR REGISTRATION TO A DEPARTMENT LICENSING PROGRAM;
PROVIDING A PURPOSE; PROVIDING DEFINITIONS; PROVIDING RULEMAKING AUTHORITY; PROVIDING
LICENSING REQUIREMENTS; PROVIDING FOR UNPROFESSIONAL CONDUCT; PROVIDING FOR FEES
AND FINES; PROVIDING FOR PENALTIES FOR VIOLATIONS; AMENDING SECTIONS 18-2-413, 18-2-414,
37-1-401, 39-9-101, 39-9-102, 39-9-206, 39-9-207, 39-9-301, 39-9-303, AND 39-71-401, MCA; REPEALING
SECTIONS 39-9-201 AND 39-9-204, MCA; AND PROVIDING A DELAYED EFFECTIVE DATE.”