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:

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.

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].

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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I hereby certify that the within bill,

HB 0514, originated in the House.

Chief Clerk of the House

Speaker of the House

Signed this	day

of	, .

President of the Senate

Signed this	day

of	, .

HOUSE BILL NO. 514

INTRODUCED BY R. SOMERVILLE, G. MASOLO

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.