Montana
Class action lawsuit claims Montana discriminates against out-of-state financial advisers – Daily Montanan
A Montana attorney has filed a class-action lawsuit against the state, the Montana Department of Revenue and the state auditor’s office for what they say is an illegal, unconstitutional fee charged to more than 100,000 investment advisers and representatives who live outside the Treasure State.
Even more, the lawsuit, filed in Lewis and Clark County on Friday, says that the 2019 Legislature knew that the law likely violated the privileges and immunities clause of the United States Constitution, but passed it anyway.
That constitutional clause prohibits treating residents from other states differently than residents in-state, and House Bill 694 sought to increase the licensing fees for out-of-state residents to $100 while keeping the fees for Montana-based investment advisers at $50.
Rep. Jim Hamilton, D-Bozeman, told fellow lawmakers in 2019 that, “the reason for raising this fee is that we have a group of people who are not contributing to the economy they are taking advantage of with their businesses, and therefore, I think it appropriate that we not sell Montana so cheaply.”
He said that because those same advisers don’t pay income tax or property tax in Montana, they should be charged more.
Different lawmakers and witnesses who testified in 2019 raised issues of legality with the bill, and it was even stopped in the Montana Senate because of constitutional concerns.
However, in 2019, Sen. Steve Fitzpatrick, now the Senate Majority Leader and a Republican from Great Falls, brought it back to life when it was eventually passed as part of the overall budget.
Because licensing fees are handled in a uniform way with a payment portal that’s consistent throughout the states, and because no other state differentiated between resident and non-resident licensees, Montana also developed a system where Montana resident licensees could apply for a $50 refund, while out-of-state licensees were ineligible.
In 2019, the state estimated that around 2,200 of the 108,000 financial adviser licensees were Montana-based, meaning that more than 97% financial advisers registered in the Big Sky State do not live in-state.
The class-action challenge is being brought by Thomas Strobhar, who has challenged laws and business practices in several different states on different topics. He is being represented by former state lawmaker and attorney Matthew Monforton.
“The committee knew that the discriminatory fee structure in HB 694 was unconstitutional, yet approved it anyway,” the lawsuit said.
The Montana Supreme Court has upheld the privileges and immunities clause of the U.S. Constitution, and said in 1981 that the “rights of nonresidents to ‘ply their trade, practice their occupation, or pursue a common calling in the state’” is something that shall be “free from discrimination based upon state residency.”
Even though lawmakers pointed out that Montana and other states may charge non-residents fees for recreational licenses, like hunting, that is limited to recreational, not occupational licenses.
“Montana’s policy of imposing discriminatory fees upon nonresident investment adviser representatives and securities salesperson (does not) bear a substantial relationship to any important state interest,” the lawsuit said.
The lawsuit asks that the courts declare the measure unconstitutional and issue an injunction prohibiting the state from charging a different fee for non-resident advisers as Montana-based advisers.
The lawsuit also seeks an award of damages to Strobhar and other class members.
If Strobhar and the class-action suit was successful, it would mean the state would have to disgorge as much as $25 million that Montana has collected from these fees since 2019.
Strobhar, a resident of Ohio, is no stranger to being in the middle of controversy.
Strobhar has authored more than 70 shareholder resolutions to ban corporate support for pornography, religious bigotry, fetal tissue research, abortifacients, Planned Parenthood, and policies he considers hostile to marriage. His resolutions have changed the way several large businesses operate, including American Express, AT&T, Berkshire Hathaway, General Mills and Target.
Last year, Strobhar also led an initiative that would force The Walt Disney Company to disclose charitable contributions of more than $10,000. Though Disney fought against that, arguing that Strobhar was attempting micromanagement of the company, the Securities and Exchange Commission ultimately allowed the a vote on the resolution.
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Montana
Thursday Headlines: Montana to the Moon, School bus vape, Highway crashes
Q2 Top Stories and Weather for Wednesday, April 2
Friends cheer as former Livingston woman makes history aboard Artemis II moon mission
Friends cheer as Livingston native makes history aboard Artemis II moon mission
BILLINGS – Artemis II is now more than 43,000 miles from Earth, continuing its 10-day mission around the moon and back.
The four-person crew includes Christina Koch, who will become the first woman to ever orbit the moon.
Koch also once lived in Livingston. Friends and students back in Montana gathered to watch Wednesday’s launch, which aims to test life-support systems ahead of future lunar landings.
Read the full story
Authorities investigating after Shepherd mother says 6-year-old vaped on school bus
Authorities investigating after Shepherd mother says 6-year-old vaped on school bus
SHEPHERD – Law enforcement is investigating after a 6-year-old brought a nicotine vape onto a Shepherd school bus, used it, and shared it with another student.
The Yellowstone County Sheriff’s Office initially charged the child’s guardian with endangering a child.
Those charges have now been dropped as prosecutors review the case.
School officials are now working with law enforcement on what parents are calling a disturbing trend.
Read the full story
Drivers trapped for hours after semi crashes shut down I-90 near Columbus
Multiple semi crashes shut down Interstate 90 traffic near Columbus
COLUMBUS – The latest wave of winter-like spring weather caused major problems on Interstate 90 on Wednesday, with similar conditions on the way.
Several semi crashes led to a highway closure between Big Timber and Columbus.
All was clear by Wednesday afternoon and no one was hurt, but the incidents led to long waits at truck stops on both ends of the closure.
Read the full story
Q2 WEATHER
Billings Forecast Wednesday evening Apr 1, 2026
Watch Montana This Morning
Q2 Montana This Morning with Hailey Monaco 4-2-26
Montana
Montana Ag Network: Research finds sheep grazing benefits bees
LAVINA— Sheep grazing has been helping bee populations thrive at a Lavina sheep and cattle ranch.
Entomologist Hayes Goosey, who works as the Montana State University Extension forage specialist, said grazing reveals dirt patches, where bees can dig nests.
Watch how sheep are part of a bigger picture:
Montana Ag Network: Research finds sheep grazing benefits bees
He studied sheep and cattle grazing effects on the environment at Lehfeldt Land and Livestock in Lavina.
“Most bees are solitary, and they nest in the soil, and they need bare patches of ground to identify nest locations. And so periodic grazing then opens up that canopy of that detritus and gives native bees places to nest,” said Goosey.
Abi Saeed/ MSU Extension
“We found greater numbers of bees associated with areas where cattle grazing was present compared to places where a long-term idling or lack of grazing had been the dominant land management for about a decade,” he added.
Grazing also balances animal populations that have been there for years.
“To maintain historically what the range looked like, it requires grazing at varying levels,” added Goosey.
Vanessa Willardson/Q2
Fifth-generation rancher Ben Lehfeldt, whose property Goosey studied, said taking care of sheep is a lot of work, but it is worth it.
“Sheep, cattle, agriculture, the whole is essential to the whole wildlife picture. Everything works together,” said Lehfeldt.
This week, Lehfeldt is working with a team of five shearers, two wool handlers and his family to shear 2,000 sheep, producing 20,000 pounds of wool.
Vanessa Willardson/Q2
“It just kind of gives them a fresh start for the year to grow that coat,” said Lehfeldt.
Shearing sheep is also an important step before lambs are born because sheared sheep will be more likely to seek shelter during bad weather, meaning lambs will get the shelter they need too.
“If they had a big coat on, they wouldn’t want to go to a shelter if it’s raining. That lamb needs protection. So now… when they feel that rain, they’ll head and take their lamb for protection,” said Lehfeldt.
Vanessa Willardson/Q2
Working hard to maintain sheep populations in Montana, such as the work behind sheep shearing, contributes to a bigger picture.
“Not only does it help with the sheep and the grazing, but it also adds to the environment and the wildlife and the insects as a whole,” added Lehfeldt.
Montana
Montana Morning Headlines: Wednesday, April 1, 2026
WESTERN MONTANA — Here’s a look at Western Montana’s top news stories for Wednesday.
Thompson falls residents are paying around 110 dollars a month for water and sewer services on vacant lots that aren’t even connected to utilities, an issue that was brought up at Monday night’s city council committee meeting. Now, community members are circulating recall petitions targeting the mayor and several city council members over the billing practice. (Read the full story)
Two Missoula restaurants, Pangea and the Stave & Hoop Speakeasy, announced temporary closures due to unexpected changes on Tuesday. Management said both will return with new concepts and ownership, calling it a “see you soon” rather than goodbye. (Read the full story)
Travelers’ Rest State park is celebrating 25 years as a state park, where both Salish ancestors and Lewis and Clark once camped near Lolo Creek. The historic site now draws about 80,000 visitors annually from around the world to learn about the area’s rich history. (Read the full story)
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