SENATE BILL NO. 325
INTRODUCED BY D. MAHLUM, SLITER, BALES, BARRETT, BERRY, BOHLINGER, BUTCHER, BUZZAS, CHRISTIAENS, E. CLARK, COCCHIARELLA, COLE, CRISMORE, DALE, DELL, DEPRATU, DOHERTY, EKEGREN, ELLIS, ESP, FACEY, FORRESTER, FRANKLIN, GALLUS, GALVIN-HALCRO, GILLAN, GOLIE, GROSFIELD, HALLIGAN, HARRINGTON, JENT, JERGESON, KAUFMANN, KEANE, KITZENBERG, LAWSON, LEE, LEHMAN, LENHART, LINDEEN, MANGAN, MCNUTT, NELSON, OLSON, PATTISON, PRICE, RASER, RIPLEY, ROME, ROUSH, RYAN, SCHMIDT, SCHRUMPF, SHEA, SOMERVILLE, STORY, TASH, TESTER, B. THOMAS, WALTERS, WANZENRIED
AN ACT GENERALLY REVISING RURAL COOPERATIVE LAWS; CLARIFYING THE DESCRIPTION OF CLASS NINE PROPERTY AS IT RELATES TO RURAL ELECTRIC COOPERATIVES; REVISING THE DEFINITION OF "RURAL AREA"; REQUIRING THAT A COOPERATIVE'S ARTICLES OF INCORPORATION INCLUDE PROVISIONS FOR CLASSIFICATION OF MEMBERS; CLARIFYING COOPERATIVE MEMBERSHIP AND VOTING DISTRICT PROVISIONS; PROVIDING THAT POLE ATTACHMENT MATTERS ARE GOVERNED BY FEDERAL LAW IN CERTAIN MUNICIPAL AREAS; AMENDING SECTIONS 15-6-141, 35-18-102, 35-18-104, 35-18-203, 35-18-301, AND 35-18-313, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 15-6-141, MCA, is amended to read:
"15-6-141. Class nine property -- description -- taxable percentage. (1) Class nine property includes:
(a) centrally assessed allocations of an electric power company or centrally assessed allocations of an electric power company that owns or operates transmission or distribution facilities or both, including, if congress passes legislation that allows the state to tax property owned by an agency created by congress to transmit or distribute electrical energy, allocations of properties constructed, owned, or operated by a public agency created by the congress to transmit or distribute electric energy produced at privately owned generating facilities, not including rural electric cooperatives. However, rural electric cooperatives' property used for the sole purpose of serving customers representing less than 95% of the electric consumers located within the incorporated limits of a city or town of more than 3,500 persons in which a centrally assessed electric power company also owns property or serving an incorporated municipality with a population that is greater than 3,500 persons formerly served by a public utility that after January 1, 1998, received service from the facilities of an electric cooperative is included. For purposes of this subsection (1)(a), "property used for the sole purpose" does not include a headquarters, office, shop, or other similar facility.
(b) allocations for centrally assessed natural gas companies having a major distribution system in this state; and
(c) centrally assessed companies' allocations except:
(i) electrical generation facility property included in class thirteen;
(ii) property owned by cooperative rural electric and cooperative rural telephone associations and classified in class five;
(iii) property owned by organizations providing telephone communications to rural areas and classified in class five;
(iv) railroad transportation property included in class twelve;
(v) airline transportation property included in class twelve; and
(vi) telecommunications property included in class thirteen.
(2) Class nine property is taxed at 12% of market value."
Section 2. Section 35-18-102, MCA, is amended to read:
"35-18-102. Definitions. (1) Corporations organized under this chapter and corporations which become subject to this
chapter in the manner hereinafter provided are hereinafter referred to as "cooperatives".
(2) In this chapter, unless the context otherwise requires, the following definitions apply:
(1) "Broadband" means transmission facilities capable of handling frequencies greater than those required for high grade voice communication, higher than 4 kilohertz.
(a)(2) "Cable television system" means a system that receives and amplifies the signals broadcast by one or more
television stations and redistributes the signals to subscribing members of the public for a fixed or periodic fee by wire,
cable, microwave, or other means, whether such the means are owned or leased.
(b) "Broadband" means transmission facilities capable of handling frequencies greater than those required for high
grade voice communication (higher than 4 kilohertz).
(3) "Cooperative" means a corporation organized under this chapter or a corporation that becomes subject to the provisions of this chapter.
(c)(4) "Member" means each incorporator of a cooperative and each person admitted to and retaining membership
therein and shall include a husband and wife in a cooperative as provided by the articles of incorporation or bylaws of the
cooperative, including persons admitted to joint membership.
(d)(5) "Person" includes any natural person, firm, association, corporation, business trust, partnership, federal agency,
state or political subdivision or an agency thereof of a state or political subdivision, or any body politic other organization
or group of persons.
(e)(6) "Rural area", as applied to all corporations organized under the provisions of 35-18-105(1), means:
(a) any an area not included within the boundaries of any an incorporated or unincorporated city, town, village, or
borough having a population in excess of 3,500 persons on March 17, 1939, or subsequent thereto, and to March 17, 1939;
(b) every an incorporated municipality in which 95% or more of the premises are served by an electric cooperative on
February 1, 1971;
(c) a former rural area annexed by a municipality and subject to 69-5-109; or
(d) an incorporated municipality that was served by a public utility that sold the public utility's distribution facilities within that municipality to an electric cooperative after January 1, 1998."
Section 3. Section 35-18-104, MCA, is amended to read:
"35-18-104. Exemption from jurisdiction of the public service commission -- federal pole regulation.
Cooperatives and foreign corporations transacting business in this state pursuant to this chapter:
(1) shall be are exempt in all respects from the jurisdiction and control of the public service commission of this state;
and
(2) if they operate in a rural area described in 35-18-102 (6)(d), shall use the formulas provided in pole attachment rules of the federal communications commission or successor formulas with respect to any matters pertaining to rates, terms, or conditions of any pole attachment agreement between themselves and any pole tenant or lessee made after [the effective date of this act]."
Section 4. Section 35-18-203, MCA, is amended to read:
"35-18-203. Articles of incorporation. (1) The articles of incorporation of a cooperative shall recite must state in the
caption that they the articles of incorporation are executed pursuant to this chapter, shall must be signed by each of the
incorporators, and shall must state:
(a) the name of the cooperative;
(b) the address of its principal office;
(c) the names and addresses of the incorporators;
(d) the names and addresses of the persons who shall constitute its first board of trustees; and
(e) any provisions not inconsistent with this chapter deemed considered necessary or advisable for the conduct of its
business and affairs.
(2) In addition to provisions required in subsection (1), the articles of incorporation may also contain:
(a) provisions not inconsistent with law regarding liability as set forth provided in 35-1-216; and
(b) provisions for classification of members in a cooperative.
(3) Such A cooperative's articles of incorporation shall must be submitted to the secretary of state for filing as provided
in this chapter.
(4) It shall is not be necessary to set forth include in the articles of incorporation of a cooperative the purpose for which
it is organized or any of the corporate powers vested in a cooperative under this chapter."
Section 5. Section 35-18-301, MCA, is amended to read:
"35-18-301. Members. (1) No A person who is not an incorporator shall may not become a member of a cooperative
unless such that person shall agree agrees to use electric electrical energy, electrical energy delivery services, or telephone
service furnished by the cooperative when such electric energy or telephone service shall be available through its facilities.
The bylaws may provide that any person, including an incorporator, shall cease to be a member of a cooperative if he shall
fail or refuse to use electric energy or telephone service made available by the cooperative or if electric energy or telephone
service shall not be made available to such person by the cooperative within a specified time after such person shall have
become a member thereof as provided by the cooperative's bylaws.
(2) Membership in the cooperative shall not be is not transferable, except as provided in the bylaws. The articles of
incorporation or the bylaws may allow joint membership and may prescribe additional qualifications, and limitations,
rights, and obligations in respect to any membership and membership class, including but not limited to the number of
trustees that each class or membership or class or classes of membership within a voting district under 35-18-313 are
entitled to elect.
(3) The articles of incorporation or the bylaws of a cooperative may provide for classifications of members in a cooperative.
(4) Members or a class or classes of members may designate voting delegates, as provided by 35-18-313 and the cooperative's bylaws, and may vote through their designated voting delegates. The bylaws may provide that each classification of members may designate a different number and method for selecting and governing voting delegates."
Section 6. Section 35-18-313, MCA, is amended to read:
"35-18-313. Voting districts. (1) (a) For corporations organized under the provisions of 35-18-105(2),
Notwithstanding notwithstanding any other provisions of this chapter, the bylaws may provide that the territory in which a
cooperative supplies electric energy or telephone service to its members shall must be divided into two or more voting
districts and that in respect to each such voting district:
(a)(i) a designated number of trustees shall be elected by the members residing therein in the voting district shall elect a
designated number of trustees;
(b)(ii) a designated number of delegates shall be elected by the members residing therein in the voting district shall elect
a designated number of delegates; or
(c)(iii) both such trustees and delegates shall be elected by such the members shall elect both trustees and delegates.
(2)(b) In any such case the The bylaws shall must prescribe the manner in which such the voting districts and the
members thereof of those voting districts and the delegates and trustees, if any, elected therefrom from those voting
districts shall function and the powers of the delegates, which may include the power to elect trustees.
(3)(c) No A member present at any voting district meeting and no a delegate present at any meeting shall may not vote
by proxy or by mail.
(2) (a) For corporations organized under the provisions of 35-18-105(1), notwithstanding any other provisions of this chapter, the bylaws may provide that the territory or geographic area in which a cooperative operates to serve members, or a class or classes of members, must be divided into two or more voting districts and that in respect to each voting district:
(i) the members or the members of a membership class or classes residing in the voting district shall elect a designated number of trustees;
(ii) the members or the members of a membership class or classes residing in the voting district shall elect a designated number of delegates; or
(iii) the members or the members of a membership class or classes shall elect both trustees and delegates.
(b) This section does not restrict or prohibit a cooperative from using any combination of voting districts based on members or classes of members within a territory or geographical area or voting districts at large based on members or classes of members using one or more kinds of service or product provided by the cooperative.
(c) The bylaws must prescribe the manner in which the voting districts and the trustees and delegates, if any, elected from those voting districts shall function and the powers of the delegates, which may include the power to elect trustees and adopt, amend, or repeal the bylaws of a cooperative.
(d) A member present at any voting district meeting and a delegate present at any meeting may not vote by proxy or by mail."
Section 7. Saving clause. [This act] does not affect rights and duties that matured, penalties that were incurred, or proceedings that were begun before [the effective date of this act].
Section 8. Effective date. [This act] is effective on passage and approval.
- END -
Latest Version of SB 325 (SB0325.ENR)
Processed for the Web on April 9, 2001 (4:35PM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill | 2001 Legislature | Leg. Branch Home
All versions of this bill (PDF Format)
Authorized print version w/line numbers (PDF format)
(406)444-3064