MontanaHB 23969th Legislature, Regular Session (2025)HouseWALLET

Revise laws related to construction contractors

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Hiring a licensed contractor limits your risk

If you hire a contractor who was licensed on the contract date, you are not treated as the employer. You are not liable for workers’ compensation, unemployment insurance, or wages and fringe benefits for that contractor. This protection also covers the contractor’s employees and any subcontractors on that job.

Prevailing wage surveys add more contractors

The department now includes licensed electricians, plumbers, and construction contractors in annual wage surveys. It does this when work follows commercial building codes or is heavy or highway construction. Surveys collect pay, fringe benefits, zone pay, per diem, and travel. Results set public-works pay rates.

Contractors must be licensed, with penalties

The law requires anyone doing construction contracting in Montana to hold a current state license. Applicants must give a Social Security number, proof of workers’ compensation compliance, an EIN if any, and owner or agent names and addresses. You must pay an application fee set by the department. Fees fund program costs and a consumer and industry education effort. The law defines unprofessional conduct, like fraud, misusing client money, misclassifying workers, or blocking investigations. The department can fine up to $5,000 and suspend or debar violators from public works contracts.

More flexibility hiring independent contractors

Beginning January 1, 2026, the law removes past limits on when construction contractors can hire or classify independent contractors. Contractors gain flexibility that previously tied hiring to listed trades or certificate status. Fees for independent-contractor exemption certificates go into a state special revenue account to run the program.

New fees and ID rules for home inspectors

Beginning January 1, 2026, the department charges home inspectors fees set by rule for issuing, renewing, reinstating, and changes; 15% funds an industry and consumer information program. A registered inspector may not use an unregistered business name. Firms and staff must use their real name and address, and no one may use a fake registration number. The department keeps a public list of registered home inspectors and will confirm someone’s status; copies may cost a reasonable fee. The department can fine up to $5,000 per violation after a hearing, but not for inadvertent errors. The law repeals two older sections on registration and certificate issuance on January 1, 2026.

Most changes start January 1, 2026

The law takes effect January 1, 2026. From that date, the new registration, identification, penalty, fee, and repeal rules apply.

Sponsors & Cosponsors

Sponsor

Morgan Thiel
Republican • House

Cosponsors

Sue Vinton
Republican • Senate
Wendy McKamey
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 263 • No: 35

Senate vote • 4/22/2025

Do Concur

Yes: 38 • No: 12

Senate vote • 4/18/2025

Do Concur

Yes: 31 • No: 19

House vote • 2/21/2025

Do Pass

Yes: 98 • No: 0

House vote • 2/20/2025