MontanaHB 9969th Legislature, Regular Session (2025)HouseWALLET

Revise laws related to motor vehicle laws for clarity and consistency

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Bill Overview

Analyzed Economic Effects

45 provisions identified: 11 benefits, 10 costs, 24 mixed.

Big bond for nonresident business titles

Nonresident businesses that apply for a Montana title must meet department requirements and may have to pay new application and title fees. The law requires a penalty bond of at least $250,000, payable to the motor vehicle division, to guard against fraud. The department may issue titles and record voluntary security interests or liens for these applicants.

New statewide speed limits

The law sets top speeds statewide. Interstates outside big urban areas are 80 mph. Interstates inside large urban areas are 65 mph. Other highways are 70 mph in daytime and 65 mph at night. Urban districts are 25 mph. You may go up to 10 mph over the limit only to pass on a two‑lane road in a marked passing zone. "Daytime" is a half hour before sunrise to a half hour after sunset. Violations face penalties under state law.

More places to use mobility devices

You can use an electric personal assistive mobility device on sidewalks, unless a sign bans it. You can also use it on bike paths and on roads with a posted speed of 35 mph or less. This expands travel options for device users.

Restricted in-state license for some drivers

If another state reported you as ineligible to the National Driver Register, you may petition a Montana district court for a restricted permit for essential driving inside Montana. You must have lived in Montana for at least 5 continuous years and show certified records that at least 5 years have passed since the most recent withdrawal. You must have no felony or misdemeanor convictions in the last 5 years, no pending traffic or alcohol/drug charges, and certify a good‑faith effort to clear the ineligible status (including paying fees or fines). The department issues the permit only after the court finds you meet all requirements.

Winter chain rules and fines

You must follow DOT orders and posted signs that require special tires, chains, or traction devices. Breaking these rules is a nonmoving offense with a $250 fine. If your violation causes all lanes to close on a highway, the fine is $750.

DUI: surrender IDs and penalties

If you hold a registry ID or license under 16‑12‑203 or 16‑12‑508 and are convicted of a DUI initially charged under 61‑8‑1002, you must surrender that ID or license. The court must send it and the conviction to the Department of Revenue within 5 days. If you violate the driver’s license reporting and surrender rules, you face penalties under 61‑5‑307.

CDL suspensions for repeat serious violations

If you hold a commercial driver’s license and commit more than one serious traffic violation in separate incidents within 3 years, your CDL is suspended. A second conviction brings a 60‑day suspension. A third or later conviction brings a 120‑day suspension. Serious violations include speeding 15 mph or more over the limit, reckless driving, improper lane changes, following too closely, certain fatal‑accident violations, lacking the right CDL or endorsements, refusing to show the CDL, and texting while driving a commercial vehicle.

Dealers must carry demo liability insurance

Dealers that use dealer or demonstrator plates, or loan demo vehicles, must keep a general liability policy in force. The policy must last at least one year, cannot lapse, and must list the department as the certificate holder. This does not replace the separate required motor vehicle liability insurance.

Stronger vehicle safety equipment rules

The law bans knowingly making, selling, or installing fake or nonfunctional airbags and devices that hide airbag problems. Cars made after January 1, 1965 must keep required seat belts installed and working. More vehicles under 10,000 pounds must have front bumpers and rear bumpers when practical. Covered vehicles must have rear fenders, splash aprons, or flaps. Violations can bring penalties under the law.

Vehicle titling and classification updates

If you get a temporary permit when a vehicle is transferred to you, you must title and register it before you transfer it again. The state issues a transaction summary receipt with a unique number to verify electronic title filings. Declared weight is the empty weight plus the max load you state on your registration. Specially constructed vehicles include custom, kit, or heavily modified builds that do not match a make or model. Most golf carts do not need a title, but a cart used by a low‑speed restricted license holder must be titled. A motor vehicle now includes highway‑equipped quadricycles and some highway‑equipped golf carts but excludes bikes, certain mopeds, mobility devices, and motorized wheelchairs. Authorized agents who update records must have a written agreement and use approved electronic tools.

Commercial carrier and towing rules

A vehicle used in commerce is a commercial motor vehicle if it meets weight, passenger, school bus, or hazardous materials tests. Farm vehicles used by the farmer within 150 miles and not for compensation, emergency vehicles on duty, and certain military vehicles are excluded. A tow truck is commercial if the business gets paid or benefits from the tow. Log haulers must use tie‑downs that meet maker limits, and the combined working load limit must be at least 1.5 times the load’s weight.

Dealer plate counts, fees, and limits

Dealers get one plate set plus extras based on last year’s sales: 5% of the first 100, 3% of the next 100, and 2% over 200. Each set costs $25 per year. Dealers that only sell motorcycles, powersports, or trailers cannot get dealer plates. Only named franchise or distribution officers and full‑time W‑2 employees may use dealer plates. A Monroney or buyer’s guide label on a dealer‑plated vehicle is taken as proof it is for real sale. Manufacturers pay $250 for the first plate set and $20 per extra set; one set is allowed per representative, with some makers (personal watercraft, snowmobiles, off‑highway vehicles) excluded from these fees.

Faster payoffs and lien releases

If a dealer takes a vehicle with a loan, the dealer must pay the lender by the earlier of 21 days after taking it or 15 days after getting full payment from the sale. For consignments, the dealer must pay within 15 days after full payment. After payoff, the lender must send the release to the state within 15 business days for certified funds, 18 days for local checks, or 21 days for nonlocal checks. A business day is any weekday that is not a legal holiday.

Permits and fees for longer loads

The law expands permit options for oversize and overlength moves. Trip permits cost $10; term permits cost $75. A term permit for 95–100 ft combinations costs $125 and is mainly limited to interstates or within 2 miles of an interchange. Annual nondivisible‑load permits up to 120 ft cost $125. Special multi‑trailer permits cost $200 per term or $20 per trip and have strict size, unit‑length, and route rules. Semitrailers 53–57 ft can run under a term permit; movers of mobile or manufactured homes up to 110 ft long or 16 ft wide can get permits. Farm‑implement dealers can get annual term permits (expire Dec 31, no grace). Limited pre‑1987 combinations may get route‑ and commodity‑restricted permits. Flag vehicles must remove their warning signs when not in use.

Rules for off-site sales and displays

Dealers generally must sell and show vehicles only at their licensed business address. Storage lots are allowed in the same county if zoning allows it, but no selling or advertising can happen there and franchise rules must be followed. Dealers may display vehicles inside airports or malls without a permit if no sales can occur. With prior written notice, dealers may display one vehicle for a nonprofit event or a joint business promotion; joint displays are capped at 90 days a year. Off‑premises sales need a permit, proof of zoning if required, are usually limited to the dealer’s county, can last up to 10 days, and a dealer can hold no more than 10 such events per year.

Safer log loads and 80,000‑lb limit

The law defines 'binder' and 'wrapper' and tightens log securement for pole trailers. The trailer must carry at least three wrappers; at least two must be used on every load. Each wrapper and each wrapper‑plus‑binder assembly must have a working load limit of at least 3,000 pounds, with placement rules for short or over‑staked logs. Five‑axle logging combinations may run at 80,000 pounds gross if the required weight fees and permit fee are paid.

Stronger warranty pay rules for dealers

Franchisors must pay dealers for warranty labor and parts at the dealer’s retail rates or markup. Dealers can choose the franchisor’s or their own labor-time guide, and can set prevailing rates with 100 repair orders or any 90‑day sample. Franchisors must approve or deny claims in 30 days and pay within 30 days after approval, and cannot deny for minor clerical errors. Paid claims cannot be charged back except for fraud, bad work, or unnecessary parts, and audits stop after 12 months. Recreational vehicle parts are paid at wholesale plus at least 30% handling, plus freight; franchisor‑supplied parts are paid using a fair wholesale value formula and the dealer’s markup. Dealers can only raise warranty labor rates and parts markups once every 12 months, and franchisors cannot force rate changes, recoup costs, or retaliate.

Tow trucks: new gear and protections

Commercial tow trucks must carry a portable cord or device to power stop, turn, and taillamps at the rear of the towed vehicle, long enough for both vehicles. Violations are penalized under 61‑9‑517. When a compliant tow company uses emergency signals while helping at crashes or hazards, it is not liable for injuries or damages caused by motorists breaking the law, unless the tow company acts with willful misconduct, bad faith, or gross negligence.

Trucking size, weight, and permit updates

A nondivisible load is defined differently on interstate and other roads, including a rule that dismantling over 8 work hours counts as nondivisible on interstates. Very large loads over 15 feet wide, 95 feet long, or 14 feet tall cannot get term or blanket permits and must use trip permits. Portable scales must be used at engineered sites that meet DOT or manufacturer standards. In emergencies, the governor may allow temporary size and weight exemptions if requested by transportation officials. Rocky Mountain doubles hauling baled hay may use combined trailer lengths up to 88 feet.

Who is a dealer; used-only limits

You count as a dealer if you buy, sell, trade, or take vehicles on consignment for profit, including cars, trailers, boats, snowmobiles, off‑highway vehicles, and special equipment. Court‑appointed officers, their employees doing that work, and public officers on duty are not dealers. Used‑only dealers cannot sell new cars, new power sports vehicles, or new trailers.

Driver license rules and recognition

The state recognizes licenses from U.S. states and territories, DC, Canadian provinces and territories, and Mexico’s federal district. Cancellation means a license is annulled for an error or because you are no longer entitled to it. Except where another rule applies, cancellation is without prejudice and you may apply for a new license at any time after cancellation.

Some old penalties repealed

The law repeals penalties for a past lighting and slow‑moving vehicle section, for unauthorized use of a firefighter’s private vehicle, and for certain tire restriction violations. Drivers no longer face those specific statutory offenses.

Temporary permits for driving rehab

With a doctor’s written request, a certified specialist may issue a temporary permit for driving assessment and rehab. You must be 16 or older and be unlicensed or have an expired license. The permit lasts up to 6 weeks and can be extended one more 6‑week period if more time is needed. It is valid only during supervised in‑vehicle evaluations.

Clearer ID and temporary permit rules

For title and registration, you may use your state driver’s license or ID number. Businesses may use an EIN/TIN or, if none, the secretary of state number; the department assigns a number if needed. A temporary permit displayed in an approved pouch lets you operate for 40 days from issue (or until registration). A 61-3-303(4)(b) permit allows 90 days. Each temporary permit fee is split: $16.50 goes to a state special revenue account and the rest to the motor vehicle electronic commerce account. The law also treats motorboats, personal watercraft, snowmobiles, and off‑highway vehicles as motor vehicles under these rules.

Insurance notice printed on registrations

Your vehicle registration receipt now states that it is illegal to drive without liability insurance or approved self‑insurance, unless the vehicle is exempt by law. The rule adds this notice only and does not change who must carry insurance.

Rules for low-speed EVs and golf carts

The law defines low-speed electric vehicles as four-wheeled EVs with a top speed of 20–40 mph and sets equipment rules. It defines medium-speed electric vehicles as EVs up to 45 mph and 5,000 pounds and treats them as light vehicles for title and registration. You can get a low-speed restricted license to drive a low-speed EV or a golf cart, including as a learner or temporary license. Golf carts made for golf courses that average under 15 mph are generally exempt from title, registration, and required liability insurance (unless 61-3-201 applies). It also defines electric personal assistive mobility devices and caps their top speed at 12.5 mph.

Border farm drivers can go CDL‑free

The Department can make deals with neighboring states so farm drivers who haul farm products, machinery, or supplies within 150 miles of a farm can drive without a commercial driver’s license. This applies under those reciprocal agreements.

Updated dealer and franchise definitions

The law sets clearer terms for dealer operations. A 'new motor vehicle' is one not yet sold at retail, even with miles. A 'new motor vehicle dealer' sells new vehicles under a franchise, including trades. A 'retail sale' excludes sales for resale and dealer‑to‑dealer transfers. 'Community' for franchise market area is the county or counties where the franchisee is located. A 'transferee' includes owners, control persons, fiduciaries, and heirs. A storage lot is off‑site property you own, lease, or rent to store inventory. The franchisor’s suggested retail price includes delivered prices for attached accessories.

Who counts as public safety workers

For traffic control, a public safety worker includes paid or volunteer firefighters, emergency medical providers, search‑and‑rescue members, and civilian accident investigators appointed by law enforcement. This applies both to who has traffic‑control authority and to obedience rules. The change clarifies protections and duties at incident scenes.

Helmets required for riders under 18

Any operator or passenger under 18 on a motorcycle or quadricycle must wear protective headgear that meets state standards. You may not operate on a highway unless all riders under 18 wear approved helmets. The fine for a conviction under this rule is $5.

More vehicle rentals count for taxes

More rented vehicles now count as taxable motor vehicles. Short-term rented off-highway vehicles are included when rented for 30 days or less, without a driver, and designed for 15 or fewer passengers. Trucks, trailers, and semitrailers under 22,000 pounds rented without a driver to haul personal property are also included. Rentals under insurance contracts are covered.

Set fees for temporary vehicle permits

Temporary registration permits have fixed fees. Most permits cost $19.50. Permits for nonresidents, temporary quadricycle or off-road motorcycle use, or permits issued through an approved electronic system cost $24.50. A 90‑day permit under 61‑3‑303(4)(b) costs $24. You pay these fees at registration.

Stricter weigh-station and overweight checks

Trucks and commercial vehicles at 26,000 pounds GVW or more must enter weigh stations for weighing and inspection unless exempted by rule. Vehicles over 10,000 pounds may be inspected and weighed by portable crews at engineered sites. Officers can require you to drive up to 2 miles to a nearby scale or engineered site (not for RVs, travel trailers, or motor homes). If overweight, you may be required to unload; if excess is 10,000 pounds or less, you may get an excess weight permit to proceed to reduce the load.

Online rental platforms face tax rules

The law defines short-term rentals as stays of 30 days or less. It defines online hosting platforms and short-term rental marketplaces that list and book these stays. Platform fees and other facilitation charges are part of the taxable sales price unless the law excludes them. Platforms and hosts must collect and report taxes on the full amount, including those fees, when required.

Aggravated DUI rules clarified

Aggravated DUI includes an alcohol concentration of 0.16 or more, driving while ordered to use an ignition interlock, past DUI‑related suspension, cancellation, or revocation, or refusing a breath test with an implied‑consent suspension. The law also defines alcoholic beverage and how alcohol concentration is measured. For crime victim compensation, the state now uses the DUI definition in 61‑1‑101 to decide if a driver was under the influence. These changes can affect penalties and some victims’ eligibility.

Unified watercraft definitions and rules

The law makes the definitions of motorboat, personal watercraft, sailboat, and vessel match a single statute. This standardizes how watercraft are classified and registered. The hunting rule that bans using a motorboat or sailboat to pursue or take wildlife now points to these same definitions for enforcement.

Clearer car-buyer disclosures and warranty rules

Franchisors must tell the dealer, and the buyer before signing, if a new car was damaged after manufacture and repaired when that repair exceeds 5% of the suggested retail price. Dealers must display the right window sticker: a Monroney label on new cars or a buyer’s guide on used cars. Breaking the odometer disclosure rules brings the penalties set in section 61-3-607. A buyer cannot cancel a sale only because repaired parts were glass, tires, or bumpers replaced with original or comparable parts. The lemon-law definitions are updated: the warranty ends 2 years after delivery or at 18,000 miles, whichever comes first. The reasonable-use formula uses 100,000 miles.

New EV gear and RV width rules

Low‑ and medium‑speed electric vehicles must have headlights, turn signals, taillights, stop lamps, three red reflectors, mirrors, a parking brake, a compliant windshield, and seatbelts. Medium‑speed EVs must also have a roll bar, roll cage, or crush‑proof body. For noncommercial use, RVs and campers may exceed 102 inches wide when the extra width is from factory‑ or dealer‑installed appurtenances that do not extend past the side mirrors. Appurtenances include awnings and their hardware.

New proof of insurance rules for drivers

You must carry proof of auto insurance in the vehicle. It can be a paper card from your insurer or an electronic card on your phone. Commercial or fleet cards must say “commercially insured” or “fleet.” You must show proof when an officer or judge asks. If a nonowner is driving, the owner can be charged instead. You are not convicted if the online insurance check shows you were insured at the time or if you later show valid proof in court or at the officer’s office.

Rules to get collector plates and decal

To use original or collector reproduction Montana plates, you must apply and list your name, address, the plate’s year and number, and full vehicle details. The state can reject your request if that number is already on a registered vehicle. You can get a new number, a personalized number, or move a number you already own. After approval and paying fees, you must permanently register the vehicle and place a decal on the plate.

Stricter taillight and plate light rules

Your vehicle must have a rear red taillight visible from 500 feet. Vehicles made after January 1, 1956 that are registered in the state must have two red taillights visible from 1,000 feet, one on each side. Taillights must be 15 to 72 inches above the road. A lamp must light the rear plate so it can be read from 50 feet when headlights are on. Covers or tints that reduce required visibility are not allowed. Custom vehicles may use a small blue dot insert, and collector motorcycles without taillights may not be used at night unless equipped.

Collector plates: eligibility and one-time fees

A vehicle 25 years or older that is used for regular travel can qualify as a collector item. Applying for collector plates costs a one-time $20 fee. A collector reproduction plate application costs $50, split $25 to highway patrol salaries and $25 to the motor vehicle division account.

Dealer and manufacturer terms updated

The law updates business definitions for the wholesale and manufacturer rules. It clarifies who is a manufacturer, what counts as selling or buying, and who is a wholesale distributor. For this part, "motor vehicle" also covers personal watercraft, snowmobiles, and off‑highway vehicles. These changes determine which businesses are covered by the rules.

Digital records and posted hours for dealers

Dealers, wholesalers, and auto auctions may keep paper or electronic copies of titles and ownership papers while they own the vehicle. Dealers may send title and registration documents by mail, hand delivery, or approved electronic methods within the legal time limits. If two or more dealers share a location, each must keep records, office space, and inventory clearly separated. Dealers must have phone service that is publicly listed or post a cell number, and must post regular business hours at the business.

Forest Service road definitions

A forest development road is a road on national forest land or a federal right‑of‑way used for forest management. A special service road is a forest development road that the U.S. Forest Service designates for controlled use and is not part of state or local highways. These definitions clarify who manages these roads and how they are used.

Sponsors & Cosponsors

Sponsor

Denise Baum
Democrat • House

Cosponsors

Denley Loge
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 275 • No: 22

Senate vote • 3/17/2025

Do Concur

Yes: 37 • No: 12

Senate vote • 3/15/2025