MT SB263

Prohibits the state from taking legal action to obtain ownership of water rights diverted from wells, streams, springs, or groundwater developments on private land that are used on state trust land, unless authorized by the Land Board

Requires the department to notify lessees or water right owners 90 days before seeking Land Board authorization to pursue ownership of their water rights through legal proceedings

Grants lessees and water right owners the right to present facts and arguments at a public Land Board hearing before the board votes on whether to authorize the state's pursuit of water right ownership

Allows water right owners to cease beneficial use and remove water infrastructure (stock tanks, other improvements) from state land without department authorization, with 90-day notice required after removal

Requires the department to provide the Land Board within 180 days a list of all water rights obtained from lessees since July 1, 1982, with immediate effective date upon passage