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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;
PROVISION THAT AN ORIGINAL PROVIDING THAT THE CURRENT OWNER OR SUCCESSOR CAN REQUIRE
THE DEPARTMENT TO SELL THE LAND INSTEAD OF EXCHANGING IT; ALLOWING THE DEPARTMENT TO
SELL THE LAND TO ANOTHER GOVERNMENTAL ENTITY WITHOUT A PUBLIC AUCTION; REVISING THE
VALUE THRESHOLD AT WHICH THE DEPARTMENT SHALL OFFER LAND FOR SALE; ELIMINATING THE
REQUIREMENT THAT A SALE NOTICE CONTAIN THE TERMS AND CONDITIONS OF THE 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)(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. It 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 from whom the interest was originally acquired by the state or his successor in interest has the right to
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
notify the owner or successor in interest of its intention to exchange the interest. The owner shall make his demand for sale
by registered or certified mail to the department within 10 days after receipt of notice from the department.
(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.
(1) 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 Except as provided in subsection (2), if If the interest is reasonably of a value in excess of $2,500 $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. (2) The department may sell an interest in real property directly to a federal, state, or local government, an agency of
government, a school district, or a unit of the university system without a public auction. The department shall obtain fair
market value for the property."
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
(1) and (2). 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
$2,500 $5,000, the department must 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:
Private sale Property disposition if no bid or offer received. (1) If, after proper notice is published, the
department receives neither does not receive a bid at public sale nor offer from the original owner or his successor in
interest, it may at any time thereafter sell the interest at private sale or by some other method. At the sale, 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 appraised 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
be conveyed only when full payment has been made for it. It shall Except as provided in subsection (2), land or an interest
in land must be conveyed by a deed or patent of conveyance without covenants which recites stating that it 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
shall 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. (3)(4) The deed or patent shall must be signed by the governor or, in case of his the governor's absence or inability, the
lieutenant governor. It shall The signature must be attested by the secretary of state and have attached the great seal of the
state. It The signature need not be acknowledged."
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Latest Version of SB 148 (SB0148.02)
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