HOUSE BILL NO. 514

INTRODUCED BY R. SOMERVILLE, G. MASOLO

A BILL FOR AN ACT ENTITLED: "AN ACT PROHIBITING A CONSTRUCTION CONTRACT FROM INCLUDING PROVISIONS REQUIRING A SUBCONTRACTOR TO WAIVE RIGHTS TO A LIEN OR PAYMENT BOND BEFORE PAYMENT FOR LABOR OR MATERIALS; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND AN APPLICABILITY DATE."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

NEW SECTION. Section 1. Construction contracts requiring lien or bond waiver void. A construction contract may not contain provisions

requiring a contractor, subcontractor, or material supplier to waive the right to a construction lien or a right to a claim against a payment bond before the contractor, subcontractor, or material supplier has been paid for the labor, materials, or both labor and materials, furnished by the contractor, subcontractor, or material supplier.

NEW SECTION. Section 2. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 28, chapter 2, part 7, and the provisions of Title 28, chapter 2, part 7, apply to [section 1].

NEW SECTION. Section 3. Effective date -- applicability. [This act] is effective on passage and approval and applies to construction contracts entered into on or after [the effective date of this act].

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