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69th Legislature 2025 HB 683.1
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1 HOUSE BILL NO. 683
2 INTRODUCED BY S. GIST
3
4 A BILL FOR AN ACT ENTITLED: “AN ACT REVISING CONFLICT OF INTEREST LAWS FOR CERTAIN
5 LOCAL GOVERNMENT CONTRACTS; PROHIBITING CONTRACTS WITH A PERSON OR ENTITY THAT
6 WAS INVOLVED IN THE DESIGN OR ENGINEERING OF A PRIMARY PROJECT; PROVIDING A
7 DEFINITION; AND AMENDING SECTIONS 7-3-1323, 7-5-2301, 7-5-4301, AND 7-14-2404, MCA.”
8
9 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
10
11 NEW SECTION. Section 1. (1) Except as provided in Title
12 18, chapter 2, part 5, regarding use of an alternative project delivery contract, the governing body of a county or
13 consolidated city-county government may not award a construction contract to a contractor if the entity has an
14 ownership or financial interest, directly or indirectly, with a person, employee, contractor, subcontractor, or
15 entity that has participated in the design or engineering of the project as a consultant or otherwise or that
16 represents the owner in the oversight or management of the contracted project.
17 (2) For the purpose of this section, "financial interest" means ownership of a legal or equitable
18 interest, however small, or a relationship as director, advisor, or other active participant in the affairs of a party,
19 except that:
20 (a) ownership in a mutual or common investment fund that holds securities is not a financial
21 interest in the securities unless the entity participates in the management of the fund;
22 (b) an office in an educational, religious, charitable, fraternal, or civic organization is not a financial
23 interest in securities held by the entity;
24 (c) the proprietary interest of a policyholder in a mutual insurance company or a depositor in a
25 mutual savings association or a similar proprietary interest is a financial interest in the organization only if the
26 entity could substantially affect the value of the interest; and
27 (d) ownership of government securities is a financial interest in the issuer only if the contractor
28 could substantially affect the value of the securities. ****
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1
2 NEW SECTION. Section 2. (1) Except as provided in
3 Title 18, chapter 2, part 5, regarding use of an alternative project delivery contract, the governing body of a city
4 or town or other local government legislative body may not award a construction contract to a contractor if the
5 entity has an ownership or financial interest, directly or indirectly, with a person, employee, contractor,
6 subcontractor, or entity that has participated in the design or engineering of the project as a consultant or
7 otherwise or that represents the owner in the oversight or management of the contracted project.
8 (2) For the purposes of this section, "financial interest" has the same meaning as provided in
9 [section 1].
10
11 Section 7-3-1323, MCA, is amended to read:
12 "7-3-1323. All contracts entered
13 into by the municipality for supplies or materials, for any public work, or for the construction, reconstruction,
14 repair, maintenance, or operation of any public works or improvements, for which must be paid a sum
15 exceeding $2,000, shall must be awarded to the lowest responsible bidder after public advertisement and
16 competition as may be prescribed by ordinance, but the manager shall must have the right to reject all bids and
17 advertise again. All advertisements as to contracts shall must contain a reservation of the foregoing right. All
18 contracts entered into by the municipality shall must be signed by the manager after approval thereof of the
19 contracts by the commission. A contract may not be issued in violation of [section 2] regarding a conflict of
20 interest."
21
22 Section 7-5-2301, MCA, is amended to read:
23 "7-5-2301.
24 (1) Except as provided in 7-5-2304 and Title 18, chapter 2, part 5, a contract for the
25 purchase of any vehicle, road machinery or other machinery, apparatus, appliances, equipment, or materials or
26 supplies or for construction, repair, or maintenance in excess of $80,000 may not be entered into by a county
27 governing body without first publishing a notice calling for bids.
28 (2) The notice must be published as provided in 7-1-2121. ****
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1 (3) Subject to 7-5-2309 and subsection (4) of this section and except as provided in Title 18,
2 chapter 2, part 5, every each contract subject to bidding must be let to the lowest responsible bidder.
3 (4) A contract may not be issued in violation of [section 1] regarding a conflict of interest."
4
5 Section 7-5-4301, MCA, is amended to read:
6 "7-5-4301. (1) A Except as provided in [section 2] regarding
7 a conflict of interest, a city or town is authorized to make any contracts necessary to carry into effect the
8 applicable powers granted by this chapter and to provide for the manner of executing the contracts.
9 (2) (a) All necessary contracts for professional, technical, engineering, or legal services are
10 excluded from the provisions of 7-5-4302 through 7-5-4304, 7-5-4306, and 7-5-4307. However, contracts in
11 which the value of the majority of the services to be rendered constitute services other than professional,
12 technical, engineering, or legal services must be awarded under the bidding procedure provided for in 7-5-4302
13 through 7-5-4304, 7-5-4306, and 7-5-4307.
14 (b) (i) Except as provided in subsection (2)(b)(ii), supervision over or operation of a physical plant
15 that provides water, sewer, or power services to a municipality does not constitute a service excluded under the
16 provisions of subsection (2)(a).
17 (ii) A city, town, or municipality may extend, renew, or amend a contract or series of contracts for
18 the supervision or operation of a physical plant that provides water, sewer, or power services without
19 proceeding under the bidding procedure provided for in 7-5-4302 through 7-5-4304, 7-5-4306, and 7-5-4307 if:
20 (A) one or more of the contracts were awarded to the entity in accordance with the competitive
21 bidding procedures provided in 7-5-4302 through 7-5-4304, 7-5-4306, and 7-5-4307; and
22 (B) the entity has provided the services to the city, town, or municipality for the immediately
23 preceding 5-year period."
24
25 Section 7-14-2404, MCA, is amended to read:
26 "7-14-2404. Each bidder shall comply with the
27 requirements of Title 18, chapter 1, part 2. The contract must be awarded to the lowest responsible bidder in
28 accordance with the requirements of 18-1-102 and Title 18, chapter 2, part 4, and the board may reserve the ****
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1 right to reject any bids. If there is no prevailing rate of wages set by collective bargaining, the board shall
2 determine the prevailing rate to be stated in the contract. A contract may not be issued in violation of [section 1]
3 regarding a conflict of interest."
4
5 NEW SECTION. Section 7. (1) [Section 1] is intended to be codified as an
6 integral part of Title 7, chapter 5, part 23, and the provisions of Title 7, chapter 5, part 23, apply to [section 1].
7 (2) [Section 2] is intended to be codified as an integral part of Title 7, chapter 5, part 43, and the
8 provisions of Title 7, chapter 5, part 43, apply to [section 2].
9 - END -