SENATE BILL NO. 148

INTRODUCED BY B. DEPRATU

BY REQUEST OF THE DEPARTMENT OF TRANSPORTATION

A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE LAWS RELATING TO THE DISPOSITION OF EXCESS LANDS BY THE DEPARTMENT OF TRANSPORTATION; PROVIDING THAT THE CURRENT OWNER CAN REQUIRE THE DEPARTMENT TO SELL THE LAND INSTEAD OF EXCHANGING IT; REVISING THE VALUE THRESHOLD AT WHICH THE DEPARTMENT SHALL OFFER LAND FOR SALE; ALLOWING THE DEPARTMENT TO SELL LAND BY OTHER THAN PUBLIC AUCTION OR PRIVATE SALE; ALLOWING A REAPPRAISAL IF A BONA FIDE OFFER FOR LESS THAN 90 PERCENT OF THE APPRAISED VALUE IS RECEIVED AT OTHER THAN A PUBLIC AUCTION; ALLOWING CERTAIN LAND TO BE CONVEYED WITH A COVENANT; AND AMENDING SECTIONS 60-4-201, 60-4-202, 60-4-203, 60-4-205, AND 60-4-207, MCA."

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:

Section 1. Section 60-4-201, MCA, is amended to read:

"60-4-201. Exchange of interest in real property. (1) The department may determine that an interest in real property, however acquired by it, is no longer necessary to the laying out, altering, construction, improvement, or maintenance of a highway. The department may then exchange the interest, either as entire or partial consideration, for any other interest in real property needed for highway purposes. The department may establish the manner and terms and conditions for the exchange.

(2) The owner of the property may require the department to offer the land for sale in the manner set forth in 60-4-202 and 60-4-203. The department shall give actual notice to the owner of its intentions to exchange the interest. The demand for sale must be sent to the department by registered or certified mail within 10 days after receipt of notice from the department."

Section 2. Section 60-4-202, MCA, is amended to read:

"60-4-202. Sale of interest in real property. The department may sell an interest in real property if the department determines that the property is not necessary to the laying out, altering, construction, improvement, or maintenance of a highway. If the interest is reasonably of a value in excess of $5,000, sale must be made to the highest bidder at public auction. The sale of an interest at auction must be conducted as provided in 77-2-321.

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Section 3. Section 60-4-203, MCA, is amended to read:

"60-4-203. Conduct of sale. (1) The department shall publish notice of the sale once a week for 4 successive weeks in a newspaper published in the county in which the interest is located. The notice of sale must contain the information required by 77-2-322. Sale must be held in the county where the property is located.

(2) Before the sale of an interest having a value in excess of $5,000, the department shall have the interest appraised at a price representing a fair market value. The appraised value must be stated in the published notice.

(3) A sale of an interest may not be made unless it has been appraised within 3 months prior to the date of the sale. A sale may not be made for less than 90% of the appraised value.

(4) Title to an interest may not pass from the state until the purchaser has paid the full amount of the purchase price into the state treasury to the credit of the department."

Section 4. Section 60-4-205, MCA, is amended to read:

"60-4-205. Property disposition if no bid received. (1) If, after proper notice is published, the department does not receive a bid at public sale , it may at any time thereafter sell the interest at private sale or by some other method. If the department receives a bona fide offer for less than 90% of the appraised value, the department may have the property reappraised and may accept as the purchase price an amount of money not less than 90% of the reappraised value.

(2) Title to an interest may not pass from the state until the purchaser has paid the full amount of the purchase price into the state treasury to the credit of the department."

Section 5. Section 60-4-207, MCA, is amended to read:

"60-4-207. Conveyances -- execution and contents. (1) Land or an interest in land sold by the department may be conveyed only when full payment has been made for it. Except as provided in subsection (2), land or an interest in land must be conveyed by a deed or patent of conveyance without covenants stating that the deed or patent was issued under this chapter.

(2) Land or an interest in land that has been constructed, altered, or otherwise used to satisfy wetland mitigation requirements of federal laws or regulations may be conveyed with a covenant that retains the wetland mitigation credit for the department.

(3) The deed or patent must contain a reservation of easements for rights-of-way for the benefit of the United States and all other reservations to which the land conveyed may be subject.

(4) The deed or patent must be signed by the governor or, in case of the governor's absence or inability, the lieutenant governor. The signature must be attested by the secretary of state and have attached the great seal of the state. The signature need not be acknowledged."

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