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- 2025
69th Legislature 2025 SB 232
- 1 - Authorized Print Version – SB 232
ENROLLED BILL
AN ACT MODIFYING EXEMPTIONS UNDER THE MONTANA PROCUREMENT ACT; AMENDING SECTION
18-4-132, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 18-4-132, MCA, is amended to read:
"18-4-132. Application. (1) This chapter applies to:
(a) the expenditure of public funds irrespective of their source, including federal assistance money,
by this state acting through a governmental body under any contract, except a contract exempted from this
chapter by this section or by another statute;
(b) a procurement of supplies or services that is at no cost to the state and from which income may
be derived by the vendor and to a procurement of supplies or services from which income or a more
advantageous business position may be derived by the state; and
(c) the disposal of state supplies; and
(d) the board of investments. The provisions of this subsection (1)(d) do not apply to the purchase
of securities.
(2) This chapter or rules adopted pursuant to this chapter do not prevent any governmental body
or political subdivision from complying with the terms and conditions of any grant, gift, bequest, or cooperative
agreement.
(3) This chapter does not apply to:
(a) either grants or contracts between the state and its political subdivisions or other governments,
except as provided in part 4;
(b) construction contracts;
(c) expenditures of or the authorized sale or disposal of equipment purchased with money raised
- 2025
69th Legislature 2025 SB 232
- 2 - Authorized Print Version – SB 232
ENROLLED BILL
by student activity fees designated for use by the student associations of the university system;
(c) expenditures of or the authorized sale or disposal of equipment purchased with money raised
by student activity fees designated for use by the student associations of the university system;
(d)(d) contracts entered into by the Montana state lottery that have an aggregate value of less than
$250,000;
(e)(e) contracts entered into by the state compensation insurance fund to procure insurance-related
services;
(f)(f) contracts with the employment of:
(i) a registered professional engineer, surveyor, real estate appraiser, or registered architect;
(ii) a physician, dentist, pharmacist, or other medical, dental, or health care provider;
(iii) an expert witness hired for use in litigation, a hearings officer hired in rulemaking and contested
case proceedings under the Montana Administrative Procedure Act, or an attorney as specified by executive
order of the governor;
(iv) consulting actuaries;
(v) a private person contracted by the student associations of the university system with money
raised from student activity fees designated for use by those student associations;
(vi) a private person contracted consultant employed by the Montana state lottery;
(vii) a private investigator licensed by any jurisdiction;
(viii) a claims adjuster; or
(ix) a court reporter appointed as an independent contractor under 3-5-601;
(g)(g) electrical energy purchase contracts by the university of Montana or Montana state university,
as defined in 20-25-201. Any savings accrued by the university of Montana or Montana state university in the
purchase or acquisition of energy must be retained by the board of regents of higher education for university
allocation and expenditure.
(h)(h) the purchase or commission of art for a museum or public display;
(i)(i) contracting under 47-1-121 of the Montana Public Defender Act;
(j)(j) contracting under Title 90, chapter 4, part 11; or
(k)(k) contracting under Title 90, chapter 14, part 1.
- 2025
69th Legislature 2025 SB 232
- 3 - Authorized Print Version – SB 232
ENROLLED BILL
(4) (a) Food products produced in Montana may be procured by either standard procurement
procedures or by direct purchase. Montana-produced food products may be procured by direct purchase when:
(i) the quality of available Montana-produced food products is substantially equivalent to the
quality of similar food products produced outside the state;
(ii) a vendor is able to supply Montana-produced food products in sufficient quantity; and
(iii) a bid for Montana-produced food products either does not exceed or reasonably exceeds the
lowest bid or price quoted for similar food products produced outside the state. A bid reasonably exceeds the
lowest bid or price quoted when, in the discretion of the person charged by law with the duty to purchase food
products for a governmental body, the higher bid is reasonable and capable of being paid out of that
governmental body's existing budget without any further supplemental or additional appropriation.
(b) The department shall adopt any rules necessary to administer the optional procurement
exception established in this subsection (4).
(5) As used in this section, the following definitions apply:
(a) "Food" means articles normally used by humans as food or drink, including articles used for
components of articles normally used by humans as food or drink.
(b) "Produced" means planted, cultivated, grown, harvested, raised, collected, processed, or
manufactured."
Section 2. Effective date. [This act] is effective on passage and approval.
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I hereby certify that the within bill,
SB 232, originated in the Senate.
___________________________________________
Secretary of the Senate
___________________________________________
President of the Senate
Signed this _______________________________day
of____________________________________, 2025.
___________________________________________
Speaker of the House
Signed this _______________________________day
of____________________________________, 2025.
SENATE BILL NO. 232
INTRODUCED BY M. REGIER, G. HERTZ, T. MCGILLVRAY, M. NOLAND, K. BOGNER
AN ACT MODIFYING EXEMPTIONS UNDER THE MONTANA PROCUREMENT ACT; AMENDING SECTION
18-4-132, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.