Class action lawsuit claims Montana discriminates against out-of-state financial advisers

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.