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Committee advances HB 212, limiting tort liability for agricultural vehicles; amendment clarifies insurer exposure

House Transportation Committee · January 27, 2025
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Summary

The House Transportation Committee voted 8–6 to forward HB 212, which narrows tort liability for owners of agricultural vehicles and limits insurer exposure unless a policy endorsement applies; opponents warned the measure could hamper injured parties' recovery and raised constitutional concerns.

The House Transportation Committee on an executive-action vote forwarded House Bill 212, as amended, by an 8–6 roll call, sending the measure to the full House.

Supporters said the bill aligns liability rules for certain farm and state-related vehicles with existing Montana code and clarifies insurer responsibilities. "An insurer is not liable for damages in excess of amounts identified in subsection 1," Representative Byrne said when explaining the amendment, which he described as a friendly clarification provided by Farm Bureau counsel.

Opponents argued the bill would limit remedies for people seriously injured in crashes involving agricultural vehicles and could change how insurance companies handle settlements. Representative Staffman, who spoke at length in opposition, said the measure "carves out a special exception for negligence" and warned it would allow insurers to avoid paying claims above policy-limited amounts; he added, "I have to be a no." Staffman also raised constitutional concerns about limiting economic damages and contrasted the bill with prior limits on non-economic damages.

Committee members who supported the bill said it mirrors language already used in state practice for transportation agencies and contractors and that the amendment narrows ambiguity in the statute. Representative Byrne said the language was "a direct lift out of the United Montana Code Annotated" that the Department of Transportation and Department of Justice have used to protect state equipment, contracted crews and associated vehicles.

The committee recorded the final vote by roll call. The clerk announced 8 votes in favor and 6 opposed. The chair said HB 212 "has passed House Transportation and will receive further action on the House floor." The committee did not adopt any additional amendments during the final vote.

The bill record in committee notes references insurance liability language and cross-references to existing statutory provisions; the sponsor and opponents signaled the issue may draw floor-level questions about sovereign immunity, insurance obligations and constitutional limits if the bill proceeds.

The committee moved on to other business after the vote; no further committee action on HB 212 was taken at that meeting.