Bill > SB200

This bill generally revises Montana's cooperative laws by expanding the definition and rights of cooperatives, with a particular focus on out-of-state cooperative associations. The bill makes several key changes: it allows the secretary of state to accept filings from out-of-state cooperatives, modifies the definition of cooperative associations to include out-of-state entities, removes the strict requirement that cooperatives be nonprofit, and allows cooperatives to be either for-profit or not-for-profit. The bill establishes that out-of-state cooperative entities can be granted the same rights, exemptions, and privileges as Montana-based cooperatives, provided they are authorized to do business in the state and distribute proceeds according to cooperative principles. Additional changes include requiring out-of-state cooperatives to specify their jurisdiction of formation in their articles of incorporation and defining "out-of-state" to include entities governed by laws from other jurisdictions, including federally recognized tribal laws. The bill also requires the secretary of state to notify tribal governments about these changes and includes provisions for fining entities that improperly use the term "cooperative" when registering with the state. These modifications aim to provide more flexibility and clarity for cooperative associations operating in Montana.

Government Affairs

https://bills.legmt.gov/#/laws/bill/2/LC3214