The bill revises the regulations surrounding state ownership of water rights associated with state lands. It amends Section 77-6-301 of the Montana Code Annotated to clarify that lessees of state lands can place improvements related to land conservation and utilization, including water rights, on the land. Additionally, it allows water right owners with state land leases to beneficially use water from private land sources on state trust land for the duration of their lease, and they can remove associated stock tanks without needing authorization from the department.

Furthermore, the bill introduces restrictions on the state's ability to obtain ownership of water rights, particularly those diverted from private land for use on state trust land or owned by lessees of state lands. It mandates that the department notify lessees or water right owners 180 days prior to seeking ownership of a water right and allows them to have representation at board hearings. The department is also required to report to the board on all water rights it has acquired from lessees since July 1, 1982, within 180 days of the act's effective date. The act is set to take effect immediately upon passage and approval.

Statutes affected:
LC Text: 77-6-301