Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Business Regulation topic
No spam. Unsubscribe anytime.
Committee agrees to clarify Montana law for LLC operating agreements
Summary
The committee moved to amend and concur on HB 898 to make Montana the governing law for Montana limited liability company operating agreements absent a choice-of-law provision; sponsors said the change reduces uncertainty for Montana businesses and included a $100 implementation appropriation.
Representative Eric Tillman opened House Bill 898, describing it as the Montana Limited Liability Company Act and saying the bill establishes default rules so that operating agreements for Montana LLCs are interpreted under Montana law (Title 28) unless the parties choose another state's law. "This bill clarifies that an operating agreement for a Montana limited liability company is governed by Montana law," Tillman said.
The committee discussed an amendment clarifying ambiguous language around dissolution and whether an LLC should continue to exist. Senators asked about the scope and the sponsor said the change is intended to keep businesses operating rather than defaulting to dissolution through cross‑jurisdictional interpretation. The fiscal note includes a $100 appropriation to the Secretary of State to implement statutory changes; the sponsor said that amount came late in the session and could be addressed in the House if necessary.
The committee adopted the amendment and then moved to concur on HB 898 as amended; the motion carried and the bill advanced to the Senate floor.
