MontanaHB 23969th Legislature, Regular Session (2025)HouseWALLET

Revise laws related to construction contractors

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 3 costs, 2 mixed.

Hire licensed pros, avoid employer liability

Beginning January 1, 2026, if you hire a contractor who was licensed on the contract date, you are not their employer. If you hire a registered contractor or home inspector on the contract date, you are also not their employer. You are not liable for their workers’ comp, unemployment insurance, wages, or fringe benefits. This protection applies only if the license or registration was active when you signed the contract.

Tougher penalties for contractor misconduct

Beginning January 1, 2026, acts like fraud, misusing client funds, or misclassifying workers count as unprofessional conduct. The Department can fine up to $5,000 and can suspend or bar you from public‑works contracts. The Department may set rules that define and enforce unprofessional conduct. Fines from contractor violations go to the uninsured employers’ fund.

Contractor license required starting 2026

Beginning January 1, 2026, you must hold a state construction contractor license to do business in Montana. Your application must include your Social Security number, proof you follow workers’ comp laws, any IRS employer ID, and owner or manager names and addresses. You must pay a license application fee set by the Department of Labor and Industry. The program follows the state’s uniform licensing rules, and the Department issues rules to run it. License fees go into a special state account for program costs. Older registration sections are repealed and replaced by this licensing system.

Stricter rules for hiring independent contractors

Starting January 1, 2026, you may not classify a worker as an independent contractor unless they hold a valid exemption certificate for the listed trade. You cannot hire someone whose exemption is suspended, revoked, or denied. You and your staff must use your true business name and number; do not use fake registration numbers. If the Department finds you violated these business‑practice rules, it can fine you up to $5,000. Hearings may be by phone or video, and inadvertent errors are not fined.

Public contractor list and education help

Beginning January 1, 2026, the state keeps a public, regularly updated list of registered contractors and home inspectors. The Department will confirm whether someone is registered and may post the list online. The Department also runs education programs with industry groups to teach rules and smart hiring. Fifteen percent of registration fees fund the registration‑focused education program.

Registration fees capped at $70

Starting January 1, 2026, the Department charges fees for issuing, renewing, reinstating, or changing contractor and home‑inspector registrations. The initial registration and each renewal or reinstatement cannot exceed $70. A joint filing for registration and an independent‑contractor exemption cannot cost more than the two fees added together. The Department sets fee amounts by rule to cover program costs. Fees for exemption certificates go into a state account to run certification.

New data for public‑works wage rates

Starting January 1, 2026, the state includes registered commercial contractors in its annual building wage survey. For heavy and highway work, it can survey registered contractors, use federal Davis‑Bacon rates, or both. These steps can raise pay on public jobs or raise contractor costs, depending on the trade and area.

Sponsors & Cosponsors

Sponsor

Morgan Thiel
Republican • House

Cosponsors

Sue Vinton
Republican • Senate
Wendy McKamey
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 261 • No: 35

House vote • 4/22/2025

Do Concur

Yes: 38 • No: 12

House vote • 4/18/2025

Do Concur

Yes: 30 • No: 19

House vote • 2/21/2025

Do Pass

Yes: 98 • No: 0

House vote • 2/20/2025