Bill seeks to protect Montana's outdoor recreation industry

Today, the House Judiciary Committee will hear HB 204 to limit liability for small businesses and non-profit organizations for damages or injuries sustained while participating in recreational activities.

Under current law, recreational service providers are not protected from lawsuits resulting from damage or injury sustained while participating in sports and activities where injury is possible. While some participants sign pre-activity liability waivers, they are not legally binding contracts in Montana.

“HB 204 would explicitly allow pre-activity waivers for injuries resulting from sport or recreational activities which hold inherent risks,” said Representative Greg Hertz (R-HD12). “Allowing businesses to share the risk of the inherently dangerous activity with the participant incentivizes insurance agents and attorneys to seek a settlement that reflects a shared responsibility for the injury.”

Montana is one of only three states that doesn’t currently allow for pre-activity release contracts. Because organizations are liable, insurance companies often charge them higher rates or refuse to insure them altogether, creating a negative environment for new organizations or small businesses.

“Passage of this bill will allow Montana’s outdoor recreation providers and non-profit organizations, like the YMCA and church camps, to continue to provide and expand services to the general public and to the tourists attracted to this state for the recreation activities it offers,” said Rep. Hertz. “The current law creates a negative environment for recreation service providers to enter the market, which leads to increased prices and fewer jobs.”

The bill would not protect service providers from damage or injury lawsuits resulting from gross negligence or lack of reasonable care. The law still allows participants to sue if their injuries are due to non-inherent risks created through provider oversight or faulty equipment.

Many of Montana’s for-profit and non-profit organizations support this legislation and are listed on the Montana Recreation Provider Protection Act website: www.mtrppa.org.