69-11-109. Provision for transportation of passengers and property for free or reduced rates. (1) (a) A provision of the laws of this state may not prevent any person, association, company, or corporation engaged as a common carrier of persons or property in this state from carrying, storing, or handling at free or at reduced rates:

(i) property for the United States, for state or municipal governments, or for charitable institutions;

(ii) property that is being transported to or from fairs and expositions for exhibit at fairs or expositions; or

(iii) cars used by the government of the United States or the state for the transportation of fish and agents and employees employed in that transportation.

(b) The laws of this state may not prevent any person, association, company, or corporation from issuing free transportation or selling tickets at reduced rates to the classes of persons listed in 69-11-208.

(2) When free transportation or a ticket at a reduced rate is issued to any officer or any president or member of the faculty of any educational institution referred to in 69-11-208(1)(q), it may be issued only upon the application of the secretary of state and the transportation or ticket must be delivered to the secretary of state for delivery to the person or persons applying for the free or reduced ticket. The secretary of state shall keep record of all transportation and tickets at reduced rates received and delivered by the secretary of state. The state officer and the president and faculty of the state educational institutions, when traveling upon any free transportation, may not charge any mileage against the state, or if traveling upon a ticket sold at reduced fare, they may not charge mileage in excess of the cost of the ticket.

(3) The carrying free or at reduced rates of property or persons in any of the classes specified in this section must be held to be a reasonable classification by common carriers for those purposes and not to be unjust discrimination. The carriage and transportation by any common carrier at free or reduced rates in any of the cases specified in this section is not a violation of any of the provisions of the laws of Montana and does not subject the common carrier to any penalty.