The bill proposes extensive changes to the management of state lands and water rights in Montana, including the elimination of the water court's obligation to adjudicate water rights by July 1, 2030, and a ban on the Board of Land Commissioners acquiring private water rights used on state lands. It mandates the sale of isolated parcels with water rights to lessees and repeals various sections related to water rights adjudication. Additionally, the bill amends the Montana Code Annotated (MCA) to redefine the roles of water judges and commissioners, clarifying that the Board can only obtain water rights with a place of use and diversion on state lands. It also allows lessees to register improvements made on state lands before October 1, 2025, ensuring compensation for these improvements when a new lessee takes over.

Moreover, the bill establishes a water leasing program, enabling the state to acquire water rights through various means, with specific stipulations regarding the sources of water for leasing and limits on the amount that can be leased. It introduces new language regarding the final decree process, requiring water judges to affirm or modify preliminary decrees based on defined findings, and clarifies the appeal process for final decrees. The bill also emphasizes the supervision of water distribution by district courts and the protection of existing rights and priorities. Overall, the legislation aims to streamline water rights management while providing necessary protections for lessees and ensuring environmental considerations are met.

Statutes affected:
LC Text: 3-7-101, 3-7-211, 3-7-212, 3-7-223, 3-7-311, 3-7-401, 77-1-134, 77-6-301, 77-6-302, 85-2-102, 85-2-141, 85-2-234, 85-2-235, 85-2-236, 85-2-306, 85-2-406, 85-2-701, 85-2-702, 85-2-704