Senate Bill No. 339

Introduced By _______________________________________________________________________________

A Bill for an Act entitled: "An Act clarifying the review of certain parcel divisions; and amending sections 76-3-103, 76-3-201, 76-3-207, and 76-3-507, MCA."

Be it enacted by the Legislature of the State of Montana:

Section 1.  Section 76-3-103, MCA, is amended to read:

"76-3-103.   Definitions. As used in this chapter, unless the context or subject matter clearly requires otherwise, the following words or phrases shall have the following meanings definitions apply:

(1)  "Certificate of survey" means a drawing of a field survey prepared by a registered surveyor for the purpose of disclosing facts pertaining to boundary locations.

(2)  "Dedication" means the deliberate appropriation of land by an owner for any general and public use, reserving to the landowner no rights that are incompatible with the full exercise and enjoyment of the public use to which the property has been devoted.

(3)  "Division of land" means the segregation of one or more parcels of land from a larger tract held in single or undivided ownership by transferring or contracting to transfer title to or possession of a portion of the tract or properly filing a certificate of survey or subdivision plat establishing the identity of the segregated parcels pursuant to this chapter.

(4)  "Examining land surveyor" means a registered land surveyor duly appointed by the governing body to review surveys and plats submitted for filing.

(5)  "Final plat" means the final drawing of the subdivision and dedication required by this chapter to be prepared for filing for record with the county clerk and recorder and containing all elements and requirements set forth in this chapter and in regulations adopted pursuant thereto to this chapter.

(6)  "Governing body" means a board of county commissioners or the governing authority of a city or town organized pursuant to law.

(7) "Immediate family" means a spouse, children, and parents.

(7)(8)  "Irregularly shaped tract of land" means a parcel of land other than an aliquot part of the United States government survey section or a United States government lot, the boundaries or areas of which cannot be determined without a survey or trigonometric calculation.

(8)(9)  "Planned unit development" means a land development project consisting of residential clusters, industrial parks, shopping centers, or office building parks that comprise compose a planned mixture of land uses built in a prearranged relationship to each other and having open space and community facilities in common ownership or use.

(9)(10)  "Plat" means a graphical representation of a subdivision showing the division of land into lots, parcels, blocks, streets, alleys, and other divisions and dedications.

(10)(11) "Preliminary plat" means a neat and scaled drawing of a proposed subdivision showing the layout of streets, alleys, lots, blocks, and other elements of a subdivision which that furnish a basis for review by a governing body.

(11)(12) "Registered land surveyor" means a person licensed in conformance with Title 37, chapter 67, to practice surveying in the state of Montana.

(12)(13) "Registered professional engineer" means a person licensed in conformance with Title 37, chapter 67, to practice engineering in the state of Montana.

(13)(14) "Subdivider" means a person who causes land to be subdivided or who proposes a subdivision of land.

(14)(15) "Subdivision" means a division of land or land so divided that it creates one or more parcels containing less than 160 acres that cannot be described as a one-quarter aliquot part of a United States government section, exclusive of public roadways, in order that the title to or possession of the parcels may be sold, rented, leased, or otherwise conveyed and includes any resubdivision and further includes a condominium or area, regardless of its size, that provides or will provide multiple space for recreational camping vehicles or mobile homes.

(15)(16) (a) "Tract of record" means:

(i) a parcel of land, irrespective of ownership, that can be identified by legal description, independent of any other parcel of land, using documents on file in the records of the county clerk and recorder's office;

(ii) each individual parcel of land identified by a legal description unless the parcel has been joined with one or more other parcels and has a legal description that describes the resulting single larger parcel; and

(iii) a single larger parcel created pursuant to subsection (16)(a)(ii) that is shown and described on a certificate of survey on file in the office of the county clerk and recorder setting forth the single larger parcel.

(b) The term does not apply to multiple parcels shown on a single deed or other instrument."

Section 2.  Section 76-3-201, MCA, is amended to read:

"76-3-201.   Exemption for certain divisions of land. (1) Unless the method of disposition is adopted for the purpose of evading this chapter, the requirements of this chapter shall may not apply to any division of land which that:

(1)(a)  is created by order of any court of record in this state or by operation of law or which that, in the absence of agreement between the parties to the sale, could be created by an order of any court in this state pursuant to the law of eminent domain, (Title 70, chapter 30);

(2)(b)  is created to provide security for construction mortgages, liens, or trust indentures;

(3)(c)  creates an interest in oil, gas, minerals, or water which that is now or hereafter severed from the surface ownership of real property;

(4)(d)  creates cemetery lots;

(5)(e)  is created by the reservation of a life estate;

(6)(f)  is created by lease or rental for farming and agricultural purposes.

(2) Before a court of record orders a division of land under subsection (1)(a), the court shall notify the governing body of the pending division and allow the governing body to present written comment on the division."

Section 3.  Section 76-3-207, MCA, is amended to read:

"76-3-207.   Subdivisions exempted from review but subject to survey requirements -- exceptions. (1) Except as provided in subsection (2), unless the method of disposition is adopted for the purpose of evading this chapter, the following divisions of land are not subdivisions under this chapter but are subject to the surveying requirements of 76-3-401 for divisions of land not amounting to subdivisions:

(a)  divisions made outside of platted subdivisions for the purpose of relocating common boundary lines between adjoining properties;

(b)  divisions made outside of platted subdivisions for the purpose of a single gift or sale in each county to each member of the landowner's immediate family;

(c)  divisions made outside of platted subdivisions by gift, sale, or agreement to buy and sell in which the parties to the transaction enter a covenant running with the land and revocable only by mutual consent of the governing body and the property owner that the divided land will be used exclusively for agricultural purposes;

(d)  for five or fewer lots within a platted subdivision, relocation of common boundaries and the aggregation of lots; and

(e)  divisions made for the purpose of relocating a common boundary line between a single lot within a platted subdivision and adjoining land outside a platted subdivision. A restriction or requirement on the original platted lot or original unplatted parcel continues to apply to those areas.

(2)  Notwithstanding the provisions of subsection (1):

(a)  within a platted subdivision filed with the county clerk and recorder, a division of lots that results in an increase in the number of lots or which that redesigns or rearranges six or more lots must be reviewed and approved by the governing body and an amended plat must be filed with the county clerk and recorder;

(b)  a change in use of the land exempted under subsection (1)(c) for anything other than agricultural purposes subjects the division to the provisions of this chapter;

(c) a sale of a division of land created under 76-3-201(2) subjects the division to the provisions of this chapter.

(3)  A division of land may not be made under this section unless the county treasurer has certified that all real property taxes and special assessments assessed and levied on the land to be divided have been paid."

Section 4.  Section 76-3-507, MCA, is amended to read:

"76-3-507.   Provision for bonding requirements to ensure construction of public improvements. (1) Except as provided in subsection (2), the governing body shall require the subdivider to complete required improvements within the subdivision prior to the approval of the final plat.

(2)  (a) In lieu of the completion of the construction of any public improvements prior to the approval of a final plat, the governing body shall at the subdivider's option allow the subdivider shall to provide or cause to be provided a bond or other reasonable security, in an amount and with surety and conditions satisfactory to the governing body, providing for and securing the construction and installation of the improvements within a period specified by the governing body and expressed in the bonds or other security. The governing body shall reduce bond requirements commensurate with the completion of improvements.

(b)  In lieu of requiring a bond or other means of security for the construction or installation of all the required public improvements under subsection (2)(a), the governing body may approve an incremental payment or guarantee plan. The improvements in a prior increment must be completed or the payment or guarantee of payment for the costs of the improvements incurred in a prior increment must be satisfied before development of future increments.

(3)  Approval by the governing body of a final plat prior to the completion of required improvements and without the provision of the security required under subsection (2) is not an act of a legislative body for the purposes of 2-9-111."