Montana panel hears bill to let companies sign well contracts, raise contractor bond to $25,000

Representative Mike Vinton introduced House Bill 59 to the Senate Natural Resources Committee, saying the bill "is a collaboration bill between the Department of Natural Resources and the water well contractors" and that its intent is "to meet the needs of Montana residents and simplify business operations for companies around the state that do the well drilling and hire well water well drillers."

The bill would remove statutory language that currently requires the licensed water well contractor to be the individual who signs contracts on behalf of a firm, corporation or partnership. Todd Netto, bureau chief for adjudication, enforcement and distribution at the Department of Natural Resources and Conservation (DNRC) and a voting member of the Board of Water Well Contractors, told the committee the change would allow employees or representatives of companies to prepare bids and sign drilling agreements while leaving the licensed contractor responsible for the construction work. "Passage of this section would allow employees or representatives of companies to contract and prepare bids and sign the drilling agreements," Netto said.

HB 59 also would raise the bond required of licensed water well contractors and monitoring well constructors from $4,000 (individuals) and $10,000 (businesses) to $25,000 for each. Netto said the board agreed $25,000 "was more realistic of current and foreseeable costs" for repairing or replacing wells allegedly damaged by faulty workmanship. Proponent Rhonda Wiggers of the Montana Water Well Drillers Association described the current bond amounts as insufficient and noted that in the last 15–16 years only three bonds had been called in Montana. "$4,000 will not get you a well anywhere in the state of Montana," Wiggers said.

The bill would also remove language that, as currently written, has been interpreted to delay or prevent the board from initiating disciplinary action when a landowner refuses a licensee access to property involved in a complaint. Netto explained the amendment would change wording from requiring an opportunity to demonstrate compliance prior to disciplinary action to allowing the board to give licensees an opportunity to respond after a complaint, "after which the board may begin disciplinary action under 37 43 3 10." He added the change does not preclude remedies that might give licensees the chance to come into compliance.

Committee members asked clarifying questions; one member requested a plain-language distinction among water well contractor, water well driller and monitoring well constructor and Netto said he could provide statutory definitions. Representative Vinton closed by urging the committee to concur with the House on the measure. No committee vote was recorded at the hearing.