This bill amends Section 15-30-2503 of the Montana Code Annotated to provide that certain volunteer officers of small nonprofit corporations are exempt from individual liability for the corporation's failure to withhold taxes and file required statements. The exemption applies only if the small nonprofit corporation has not been out of compliance for more than 12 months with outstanding unpaid taxes, penalties, and interest. Additionally, the exemption does not apply if the officer or director receives monetary compensation for their services, or if they are involved in fraud, embezzlement, or intentional misconduct.

The bill defines a "small nonprofit corporation" as one that does not employ more than 10 paid employees at any time during the calendar year. The new legal language specifies that the exemption from individual liability is limited to volunteer officers and directors, thereby clarifying the conditions under which they may be held liable. This legislative change aims to encourage volunteerism in small nonprofits by reducing the risk of personal financial liability for those serving in leadership roles.

Statutes affected:
LC Text: 15-30-2503
HB0665_1(1): 15-30-2503
HB0665_1(2): 15-30-2503
HB0665_1(3): 15-30-2503
HB0665_1(4): 15-30-2503
HB0665_1(5): 15-30-2503
HB0665_1: 15-30-2503
HB0665_2(1): 15-30-2503
HB0665_2(10): 15-30-2503
HB0665_2(11): 15-30-2503
HB0665_2(2): 15-30-2503
HB0665_2(3): 15-30-2503
HB0665_2(4): 15-30-2503
HB0665_2(5): 15-30-2503
HB0665_2(6): 15-30-2503
HB0665_2(7): 15-30-2503
HB0665_2(8): 15-30-2503
HB0665_2(9): 15-30-2503
HB0665_2: 15-30-2503
HB0665_X(1): 15-30-2503
HB0665_X(10): 15-30-2503
HB0665_X(11): 15-30-2503
HB0665_X(12): 15-30-2503
HB0665_X(13): 15-30-2503
HB0665_X(14): 15-30-2503
HB0665_X(2): 15-30-2503
HB0665_X(3): 15-30-2503
HB0665_X(4): 15-30-2503
HB0665_X(5): 15-30-2503
HB0665_X(6): 15-30-2503
HB0665_X(7): 15-30-2503
HB0665_X(8): 15-30-2503
HB0665_X(9): 15-30-2503
HB0665_X: 15-30-2503