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Bill would let out‑of‑state cooperatives register in Montana and clarify for‑profit status
Summary
Senate Bill 200 would update cooperative statutes to provide a clear registration path for out‑of‑state cooperatives and remove a nonprofit‑only requirement for certain agricultural marketing associations; proponents said the changes remove confusion and reflect current cooperative practice.
Sen. Butch Gillespie introduced Senate Bill 200 at a House State Administration Committee hearing Friday, describing it as a statutory cleanup to modernize Montana cooperative law.
The bill would add clearer registration rules for out‑of‑state cooperatives that operate in Montana and would remove language that required the Agricultural Marketing Association to be nonprofit only, allowing the statute to reflect both for‑profit and nonprofit cooperative structures.
Tracy McIntyre, director of the Montana Council of Cooperatives, testified that the changes help permit out‑of‑state cooperatives to use the protected word "co‑op" and to register in Montana without legal contortions. "Co‑ops by nature are not charitable, and this change better reflects how we actually operate cooperatives in Montana," McIntyre said.
Mark Lambrecht of the Montana Electric Cooperatives Association added that the change is necessary for Montana electric co‑ops with headquarters across state lines that serve Montana members; he identified Northern Lights Inc. and Fall River Electric as examples of out‑of‑state members who need registration clarity.
No opponents appeared in the committee record. Proponents said the Secretary of State worked with the stakeholders to draft the bill. The committee did not record any formal action during the hearing.
