Committee hears cleanup to cooperative statutes to clarify for-profit and out-of-state co-ops

Sen. Gillespie presented Senate Bill 200 as a statutory cleanup to clarify how cooperatives are treated in Montana law and to address confusion about out‑of‑state and for‑profit vs. nonprofit status.

Tracy McIntyre, director of the Montana Council of Cooperatives, told the committee the bill "clarifies and updates the cooperative statutes" and removes a requirement that certain agricultural marketing associations be nonprofit, allowing them to be for‑profit or not‑for‑profit to reflect actual cooperative practice. Mark Lambrecht, representing Montana Electric Cooperatives Association and the Montana Community Development Corporation, said the change will help utilities and other cooperatives that operate across state lines register and comply with Montana rules.

Committee members asked about which existing entities would be affected and whether separate statutes (for example, federal carrier or railroad statutes such as BNSF) would remain governed elsewhere. The sponsor said the bill focuses on co‑ops and would not rewrite separate statutes that already cover some entities. No opponents appeared at the hearing.

Proponents urged a due‑pass recommendation and said the bill removes practical obstacles that have forced some entities into nonprofit filings inappropriate for their business model. The committee did not act during the hearing.