Product Liability Bill Passes House

NFIB-backed measure would make litigation laws more balanced

State Director Ronda Wiggers reports from Helena on the small-business agenda for the legislative week ending April 14

The Legislative session is winding down. For all practical purposes, no other bills will be introduced and the ones remaining are working their way through their final steps. As the financial committees work on the final touches on the state budget, the rest of us just work to make sure that bad bills do not rise from the dead or get added to other unsuspecting bills. While doing this, we also keep an eye out for any opportunity to quietly add legislation that we may have liked that did not get through the process. Mostly we just watch and wait for the final Sine Die motion (and to see where they cut the $250 million from the wish list.)

What Happened Last Week

HB 652 would revise unemployment Insurance law relating to benefit duration. As the bill sponsor was not interested in compromising on this bill, the committee chair asked NFIB, the state chamber of commerce and the unions to find a compromise. Montana currently has the longest period allowed in the US for benefits, 28 weeks. The change to 20 weeks would have put us third from the bottom, 26 weeks of benefit are offered in 38 states. The bill was brought from the table, amended to 26 weeks, and passed out of the committee. We wait to see what the sponsor will do with the amendment when it reaches the House.

SB 364, which would establish limits on hospital-related charges, was tabled in the House Human Services Committee. This bill would have limited hospital charges to 250% of Medicare rates.

The House Business & Labor Committee passed HB 836, revising insurance laws relating to regulatory waivers, with no amendments. It will now proceed to the House floor. This bill creates a regulatory sandbox in Montana. The bill would allow an insurer to test new safety and return-to-work programs, within the oversight of the Insurance Commissioner’s Office, to see what programs make a difference. Presently, insurers must treat similarly situated policyholders the same, not allowing them to test new ideas. To improve safety and return to work outcomes, we need to try new approaches with small groups, see what works, and then expand to all customers once solutions are found, improving the safety of workers and reducing costs for employers (explanation borrowed, with permission, from the State Fund).

The Senate Finance & Claims Committee passed HB 245 revising tax credit for trades education and training. As this has already passed 2nd reading on the Senate floor, it will go straight to its final 3rd reading vote. It passed with 42 votes on 2nd reading, so it should easily pass. It will then need to go back to the House for a final vote on the minor amendments made in the Senate. The amendments were to correct the terminology of some of the professions allowed to use this training credit. This is extending and growing a fairly popular program for Montana businesses. The $2000 tax credit for skilled trade employee training was set to expire in 2026 and this bill would extend that to 2028 and adds a large number of trades to the list eligible for the credit.

SB 270 would prohibit employee termination for legal social media posts. The sponsor accepted amendments from the business community in the Senate, which made this bill better for small business owners. The bill is on its way to the governor’s desk.

SB 95, generally revise theft laws, repeals the changes that passed in 2017 that decriminalized petty theft. This increased shoplifting and bad check writing, as there is no real punishment. NFIB strongly supports this bill. This passed the House floor and has been heard in the House Appropriations Committee where they will look at the fiscal note to determine how its affects on the state budget. They have not yet voted.

SB 216, revising laws related to litigation and products, has passed the House with a minor amendment that now needs to be approved by the Senate. This bill is an attempt to make Montana’s product liability laws a bit more balanced. They currently favor the litigant by not allowing a number of issues to be brought to the jury. The bill would also eliminate product liability lawsuits against a retailer that did nothing other than bring the product in the back door and sell it out the front door. Currently, these businesses are often dragged into a lawsuit. NFIB is working to pass this legislation.

This link will take you to the NFIB Legislative Preference list and allow you to track bills in real time.

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