39-3-703. Contractor to furnish bond -- bond requirements -- deposit. (1) Except as provided in subsection (3), a contractor who contracts with any person or entity to do any work or perform any services for the person or entity shall furnish a surety bond or other form of security that must be:
     (a) approved by the commissioner;
     (b) in an amount:
     (i) of $6,000 for a general contractor or $4,000 for a specialty contractor if the contractor is a sole proprietor, an independent contractor, or a corporate officer working as an individual without employees; or
     (ii) equal to a contractor's average monthly employee payroll, based on 12 consecutive months' payroll, as estimated by the commissioner. However, the amount may not be less than $6,000 for a general contractor or $4,000 for a specialty contractor and may not exceed $25,000 for any contractor.
     (c) in the name of the state of Montana;
     (d) for the purpose of guaranteeing:
     (i) the wages and fringe benefits of all workers employed by the contractor for the contracted work;
     (ii) all taxes and contributions due to the state;
     (iii) payment to persons furnishing labor;
     (e) filed with the commissioner within 1 week of the making of the contract or the commencement of work under the contract, whichever comes first.
     (2) Only one bond is required on any contractor for each year, and when the bond is filed with and approved by the commissioner, the commissioner shall certify to any person contracting with a contractor that the bond is in full force and effect.
     (3) In lieu of the surety bond required by subsection (1), the contractor may file with the department a deposit consisting of cash or other security acceptable to the department.
     (4) A change in the name of a business or a change in the type of business may not impair a bond for the purposes of this section as long as one of the original applicants for the bond maintains partial ownership in the business covered by the bond.

     History: En. 41-2502 by Sec. 2, Ch. 208, L. 1975; R.C.M. 1947, 41-2702(1), (3); amd. Sec. 27, Ch. 500, L. 1995.