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Bill

HB 227

Establish a contingent litigation fund for occupational licensing boards and programs

2025 Regular Session Introduced by Jodee Etchart

Montana establishes a contingent litigation fund allowing occupational licensing boards to reserve money for legal defense costs and settlements independently from operating budgets.

Chapter Number Assigned
#appropriations(seealso:statefinance) #laborandemployment(seealso:unemploymentinsurance;workers'comp) #revenue #state #rulemaking
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Bill Summary · HB 227

Legislative bill overview

HB 227 creates a contingent litigation fund that allows Montana's occupational licensing boards and programs to set aside money to cover legal costs and potential settlements related to lawsuits. The fund provides financial resources for these regulatory bodies to defend themselves or resolve disputes without depleting their regular operating budgets.

Why is this important

Occupational licensing boards regulate professions like nursing, construction, and cosmetology. Without dedicated litigation funds, legal disputes could drain resources meant for licensing examinations, complaint investigations, and consumer protection activities. This allows boards to pursue or defend cases without compromising core regulatory functions.

Potential points of contention

  • Cost allocation: How much money boards can accumulate in these funds and whether limits should apply to prevent excessive reserves at taxpayer expense
  • Accountability concerns: Whether litigation funds might be used to defend questionable licensing decisions or regulatory actions that disadvantage workers or businesses
  • Transparency requirements: The bill's specificity about public disclosure of how much money is being held and how it's being spent on legal matters

Compiled from official sources — confirm details with the bill’s official record.

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