AN ACT PROVIDING THAT THE STATE'S LIABILITY FOR INTEREST AND ATTORNEY FEES IN A JUDGMENT ON A CONTRACT, PROVIDED FOR IN CHAPTER 508, LAWS OF 1997, IS RETROACTIVE TO AND APPLIES TO CONTRACTS IN EFFECT ON MAY 1, 1997, THE DATE ON WHICH CHAPTER 508 TOOK EFFECT; AMENDING SECTION 18-1-404, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.

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

Section 1. Section 18-1-404, MCA, is amended to read:

"18-1-404. Liability of state -- costs. (1) (a) The state of Montana is liable in respect to any contract entered into in the same manner and to the same extent as a private individual under like circumstances, except the state of Montana is not liable for punitive damages.

(b) The state of Montana is liable for interest from the date on which the payment on the contract became due. This liability is retroactive, within the meaning of 1-2-109, and applies to any contract in effect or an action pending on a contract on or after May 1, 1997. For purposes of this section, the interest rate is 10% simple interest each year, whether due before or after a judgment. If the contract does not specify when interest is payable before a judgment, interest must be paid at the time provided in 17-8-242(2).

(2) Costs may be allowed as provided in 25-10-711. In all other cases, costs must be allowed in all courts to the successful claimant to the same extent as if the state of Montana were a private litigant. The costs must include attorney fees. The liability for attorney fees is retroactive, within the meaning of 1-2-109, and applies to any contract in effect or an action pending on a contract on or after May 1, 1997.

(3) This section does not apply to a contract governed by Title 19."

Section 2. Effective date. [This act] is effective on passage and approval.

- END -

I hereby certify that the within bill,

SB 0463, originated in the Senate.

Secretary of the Senate

President of the Senate

Signed this	day

of	, .

Speaker of the House

Signed this	day

of	, .

SENATE BILL NO. 463

INTRODUCED BY J. WELLS

AN ACT PROVIDING THAT THE STATE'S LIABILITY FOR INTEREST AND ATTORNEY FEES IN A JUDGMENT ON A CONTRACT, PROVIDED FOR IN CHAPTER 508, LAWS OF 1997, IS RETROACTIVE TO AND APPLIES TO CONTRACTS IN EFFECT ON MAY 1, 1997, THE DATE ON WHICH CHAPTER 508 TOOK EFFECT; AMENDING SECTION 18-1-404, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE AND A RETROACTIVE APPLICABILITY DATE.