MontanaSB 20069th Legislature, Regular Session (2025)SenateWALLET

Generally revise cooperative laws

Sponsored By: Bruce "Butch" Gillespie (Republican)

Became Law

Utilities

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 3 benefits, 1 costs, 0 mixed.

Easier to form nonprofit farm cooperatives

Five or more people who produce agricultural products can form a nonprofit cooperative, with or without capital stock. Associations under this chapter are nonprofit and run for members, even if members are for‑profit or not‑for‑profit. Articles must say if members’ property rights are equal. If not, the articles must state the rules, and new members share based on those rules.

Faster statewide electronic business filings

The Secretary of State can create a statewide electronic filing system. The office must also keep a central filing system that follows federal farm‑product filing rules (7 U.S.C. 1631). This makes it easier to file and find business and cooperative records in one place. It supports required filings and notices for farm products.

More Montana rights for out-of-state co-ops

An out‑of‑state cooperative that is authorized to do business in Montana and distributes proceeds as required gets the same rights, exemptions, and privileges as a Montana cooperative. The law also treats qualifying out‑of‑state companies as "associations" under Montana cooperative rules. "Out‑of‑state" includes federally recognized Indian tribes. This makes it easier for qualifying co‑ops formed elsewhere, including by tribes, to operate in Montana.

Limits on using 'cooperative' in names

The Secretary of State does not accept new filings that use "cooperative" unless the business is a lawful cooperative under Title 35, chapters 15–18, or filed under 30-10-105. This applies to assumed business names, corporations, LLCs, partnerships, limited partnerships, and nonprofits. A violation is a civil fine of $50 to $1,000 per filing. Entities formed before October 1, 2023, and out‑of‑state cooperatives required to register under 35-14-1503 are exempt.

Sponsors & Cosponsors

Sponsor

Bruce "Butch" Gillespie
Republican • Senate

Cosponsors

Eric Tilleman
Republican • House

Roll Call Votes

All Roll Calls

Yes: 338 • No: 5

Senate vote • 4/2/2025

Do Concur

Yes: 95 • No: 0

Senate vote • 4/1/2025

Do Concur

Yes: 98 • No: 1

Senate vote • 3/4/2025

Do Pass

Yes: 50 • No: 0

Senate vote • 3/1/2025

AMD-SB0200.001.001 Ellis D/PASS

Yes: 45 • No: 4