HB 676: Generally revise state land and water laws - Montana

HB0676GovVeto.pdf → HB0676_X(9).pdf · 4 edits

MODERATE

The document changed from a formal veto request letter from Montana Trout Unlimited to the actual text of House Bill 676. The bill itself was amended to clarify that the State Land Board can only own water rights if both the diversion and place of use are on state land, and it added specific rules for compensating lessees when their registered improvements are transferred to a new lessee.

Scope change

The document scope changed entirely from a letter of opposition to the legislative text of the bill.

ELIGIBILITY

Added a specific condition stating the Board can only obtain ownership of a water right if both the place of diversion and the place of use are located on state lands.

REQUIREMENT

Added new requirements for compensating former lessees when a new lessee takes over, including a mandatory registration deadline of September 30, 2026, for improvements made before October 1, 2025.

TIMELINE

Established a new immediate effective date for the act upon passage and approval.

DEFINITION

Modified the definition of 'improvements' to explicitly include water rights alongside physical infrastructure like fences and wells.

HB0676_X(8).pdf → HB0676GovVeto.pdf · 3 edits

MINOR

The document changed from the text of House Bill 676 to a formal veto request letter from advocacy groups urging the Governor to reject the bill. The original bill text, which proposed amending state laws regarding land improvements and water rights, was removed. It was replaced by letters from the Montana Stockgrowers Association and Montana Trout Unlimited arguing that the bill undermines decades of water adjudication work and violates constitutional duties to state trust lands.

Scope change

The scope changed from a legislative proposal affecting state land and water laws to a political advocacy document requesting a veto.

LEGISLATION

The full text of House Bill 676, including amendments to sections 77-6-301 and 77-6-302 regarding land improvements and water rights ownership, was deleted.

ADVOCACY

Two formal letters were added urging the Governor to veto HB 676, citing concerns that the bill complicates water rights adjudication and threatens state trust land values.

DOCUMENT_TYPE

The document format shifted from a statutory bill to a correspondence letter addressed to the Governor.

HB0676_X(2).pdf → HB0676_X(3).pdf · 3 edits

MINOR

The bill's title and summary were significantly shortened, removing references to repealing the Water Court's adjudication duties and eliminating a list of repealed statutes. The language was also simplified to remove the phrase 'generally revising' and the specific instruction for an 'immediate effective date,' replacing it with a generic 'providing an immediate effective date.'

Scope change

The bill's scope was narrowed by removing explicit language that repealed sections of the state code related to water right adjudications and the Water Court's specific duties.

TIMELINE

Removed the specific instruction to eliminate the Water Court's duty to adjudicate water rights by July 1, 2030.

REQUIREMENT

Removed a long list of specific MCA sections that were previously stated to be repealed.

TECHNICAL

Condensed the act's title and summary to be more concise, removing phrases like 'generally revising' and specific repeal lists.

HB0676_X(1).pdf → HB0676_X(2).pdf · 5 edits

MODERATE

The bill was simplified to remove specific deadlines for water court adjudication and repealed numerous sections related to water rights, while retaining core provisions about state land leases and compensation for improvements. This reduces the legislative text significantly by eliminating detailed procedural mandates and focusing only on the most critical operational rules.

Scope change

The bill's scope was narrowed by removing specific mandates for the water court to finish adjudication by July 1, 2030, and by deleting extensive lists of repealed sections that previously governed water rights.

TIMELINE

Eliminated the requirement for the water court to adjudicate water rights by July 1, 2030.

SCOPE

Deleted the prohibition on the Board of Land Commissioners obtaining ownership of private water rights used on state lands, though a similar prohibition remains in the final version.

Removed requirements to sell isolated parcels with water rights to lessees and repealed sections related to water rights adjudication.

Deleted a long list of specific MCA sections (85-2-212 through 85-2-282) that were previously repealed.

Condensed the list of amended sections from over 20 specific codes down to just two sections (77-6-301 and 77-6-302).

HB0676_3(12).pdf → HB0676_X.pdf · 4 edits

MODERATE

The bill was transitioned from a draft version to an enrolled, enacted law. The substantive policy content remains focused on revising state lands and water rights laws, specifically prohibiting the Board of Land Commissioners from owning private water rights and repealing sections related to a 2030 adjudication deadline. The primary changes are administrative, including the removal of draft headers, the addition of official certification signatures, and the correction of a typo in the effective date clause.

Scope change

The bill's scope and applicability remain unchanged; it continues to apply to the Montana Legislature and the Board of Land Commissioners regarding state lands and water rights.

TECHNICAL

The bill title was simplified from a long descriptive sentence to a standard format, and the legislative session year was corrected from 2025 to 2025 (no change in year, but format adjusted).

A typo in the original draft stating the adjudication deadline was July 1, 2031 was corrected to July 1, 2030 in the final version.

Official certification text, signatures for the House and Senate, and the 'ENROLLED BILL' designation were added to finalize the document as law.

Draft-specific instructions such as 'Refer to Introduced Bill' and 'Strike everything after the enacting clause' were removed.

HB0676_3(6).pdf → HB0676_3(7).pdf · 4 edits

MODERATE

The bill updates the formatting of section headers to use standard capitalization and corrects a duplicate word in the text regarding lease termination. It also renumbers subsections within the water rights section and adds a clarification that lessees keep water rights that do not meet specific state land criteria. These changes primarily improve readability and clarify ownership rules without altering the core policy.

TECHNICAL

Standardized the capitalization of section headers and subsection labels throughout the document.

Corrected a typo where the word 'On' was duplicated in the sentence about granting licenses to former lessees.

Renumbered water right subsections from (A)/(B) to (a)/(b) to align with standard legal formatting.

DEFINITION

Added a new sentence clarifying that lessees retain ownership of water rights that do not meet the specific criteria for state ownership.

HB0676_3(2).pdf → HB0676_3(3).pdf · 4 edits

MODERATE

The bill was reorganized to clarify that state-owned water rights must have both a place of use and a place of diversion on state land, while lessees retain rights that do not meet these criteria. It also added strict timelines for compensating former lessees for registered improvements and established a process for the state to claim unclaimed property if disputes over value cannot be resolved. These changes aim to streamline water rights ownership and ensure fair compensation for improvements on state land.

Scope change

The scope of water rights ownership was narrowed to require both a place of use and a place of diversion on state lands, and the applicability of improvement compensation rules was clarified to exclude specific improvements described in 77-1-134.

ELIGIBILITY

Updated water right eligibility criteria to require both a place of use and a place of diversion on state lands for the state to claim ownership.

REQUIREMENT

Added a requirement for former lessees to initiate a valuation dispute process within 60 days of receiving department notification of a new lessee.

ENFORCEMENT

Established that unclaimed improvements or movable items not removed within 60 days become state property.

TIMELINE

Set a specific 60-day deadline for removing movable improvements after lease termination, with provisions for extensions.

HB0676_2(14).pdf → HB0676_3.pdf · 6 edits

MODERATE

The bill was renumbered from HB 676.2 to HB 676.3 and underwent significant substantive changes, replacing the original focus on adjudicating water rights with a new emphasis on protecting lessee improvements and clarifying state ownership of water rights. The most critical change is the removal of the requirement for the Board of Land Commissioners to adjudicate water rights on state lands, shifting the focus to compensating lessees for registered improvements when leases are renewed or terminated. Additionally, the bill now explicitly states that the state only retains ownership of water rights if they are used on state land, while lessees retain rights not meeting this criteria.

Scope change

The bill's scope shifted from a broad mandate to adjudicate water rights and manage water court duties to a narrower focus on protecting lessee improvements and defining state ownership of water rights based on place of use and diversion.

SCOPE

Removed the requirement for the Board of Land Commissioners to adjudicate water rights on state lands, eliminating the Water Court's duty to handle these specific cases.

REQUIREMENT

Added a new requirement for the Department of Natural Resources to request a listing of improvements from lessees before lease renewal, including the reasonable value of those improvements.

Changed the handling of movable improvements upon lease termination, allowing the department to grant a license to remove them within 60 days, after which they become state property.

ENFORCEMENT

Established a compensation mechanism where new lessees must pay the former lessee the reasonable value of registered improvements, with a minimum threshold of full market value.

DEFINITION

Clarified that the state only obtains ownership of a water right if it has a place of use and place of diversion on state lands; otherwise, the lessee retains the right.

TIMELINE

Set a deadline of September 30, 2026, for lessees to register improvements made prior to October 1, 2025.

HB0676_1(4).pdf → HB0676_2.pdf · 4 edits

MODERATE

The bill's title and scope were modified to extend the deadline for adjudicating water rights on state lands from July 1, 2030, to July 1, 2031, and to correct a description of the water rights involved. Additionally, the list of specific code sections being amended or repealed was reorganized and slightly altered, while the bill's formatting and numbering were updated to reflect a new version.

Scope change

The bill's scope was extended by one year regarding the deadline for water rights adjudication.

TIMELINE

The deadline for the Water Court to adjudicate water rights on state lands was extended from July 1, 2030, to July 1, 2031.

DEFINITION

The description of water rights in the title was changed from 'water rights' to 'private water rights' to specify the type of rights involved.

TECHNICAL

The list of specific MCA sections to be amended or repealed was reorganized and slightly modified, though the core intent remains the same.

The bill's header formatting and version number were updated from HB 676.1 to HB0676.2.

LC2991.pdf → HB0676_1.pdf · 2 edits

MINOR

The bill was renumbered and re-introduced as HB 676.1, replacing the previous LC 2991 version, with the sponsors updated to reflect the current legislative session. The text includes minor formatting adjustments, such as removing redundant line breaks and correcting numbering in a section regarding water masters, but no substantive policy changes were identified in the provided excerpt.

TECHNICAL

The bill title and sponsor information were updated to reflect the new bill number (HB 676.1) and current sponsors (B. Ler, W. Galt, R. Gregg), replacing the previous LC 2991 designation.

Minor formatting corrections were made, including removing extra line breaks and adjusting the numbering sequence in a section describing the appointment of water masters.

Generally revise state land and water laws

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