MontanaHB 68169th Legislature, Regular Session (2025)HouseWALLET

Revise subdivision regulation laws involving determination of water availability

Sponsored By: John Fitzpatrick (Republican)

Became Law

WaterProperty

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 2 benefits, 1 costs, 3 mixed.

Faster subdivision decisions with penalties

Beginning January 1, 2026, your subdivision application is treated as received the day it is delivered with the review fee. The reviewer has 5 working days to check for all required materials and must list any missing items. After you are told it has all elements, the reviewer has 15 working days to decide if the information is sufficient and must tell you any gaps. Once the application is sufficient, the governing body must approve, conditionally approve, or deny within 60 working days, or 80 working days for 50 or more lots; the parties may agree to extend up to one year or pause for a public hearing. If the governing body misses the deadline, it must pay you $50 per lot per month (or part month), capped at the total review fee collected; this does not apply if the review period was properly extended or suspended.

Certified reviewers and state backstop

Starting January 1, 2026, the state department sets rules, sanitary standards, training, and certification for local health reviewers and independent reviewers, and publishes program results and biennial reviews. A local health department may review subdivisions only if it employs a registered sanitarian or professional engineer and is certified; most public water or sewage systems are reviewed only where certification allows connections without extensions. Certified independent reviewers can be assigned subdivision files; if 110 or more new files arrive in a month, the department assigns that month’s applications to them if available, and pays them the same rate as certified local reviewers. Independent reviewers must disclose conflicts before assignment, follow public‑records rules, and complete required environmental and takings documents; conflicted files are reassigned. The state department reviews subdivisions when local jurisdictions disagree or when a local health department or board chooses not to be certified.

Prove water and septic before approval

Beginning January 1, 2026, local governments may require approval from the Department of Natural Resources and Conservation to appropriate water unless you use a hauled-water cistern, an adequate municipal or county water/sewer district facility, or the lot does not need water. For subdivisions with any lot 20 acres or more, the local government may require proof that each lot has an adequate water source and space for a septic system plus a replacement drainfield. New water systems (not cisterns) must show adequate supply using well logs, well tests, published hydrogeologic reports, or other methods, and an application can meet water-availability rules by showing a water right, a completed technical analysis, or an authorized notice of intent for each lot. You must show water quality meets Department of Environmental Quality rules and submit a preliminary analysis of groundwater impacts from new wastewater systems or provide a full nondegradation analysis. For onsite wastewater, provide a soil profile from a representative drainfield site showing at least 4 feet of vertical separation to a limiting layer and, if groundwater is within 7 feet of the surface, show the 4‑foot minimum will be maintained. For subdivisions creating parcels under 20 acres, the local government may require Department of Environmental Quality approval before final plat approval.

New groundwater permit limits and steps

Starting January 1, 2026, you do not need a groundwater permit outside a stream depletion zone when pumping is 35 gpm or less and total use is 10 acre‑feet per year or less; inside a stream depletion zone the limits are 20 gpm and 2 acre‑feet per year, and combined uses over the acre‑feet limits require a permit. A stream depletion zone is where modeling shows pumping 35 gpm would deplete surface water by at least 30% within 30 days. To use the permit‑exception, you must file a correct notice of intent; the department flags defects within 10 business days, you have 60 days to fix, and the department authorizes or denies within 10 business days after a complete filing. You must complete the appropriation within 5 years; you may get one extension of up to 5 more years if you show progress toward beneficial use. For water systems under Title 75, chapter 6, part 1, construction and use proves beneficial use: the department allocates 10 acre‑feet per year and issues a water‑right certificate; outside a stream depletion zone at 10 acre‑feet per year or less, the right is perfected after construction and Department of Environmental Quality approval, and yearly measurement and reporting are required.

More details required on plats

Starting January 1, 2026, your preliminary plat must describe the water, storm water, solid waste, and wastewater systems, say if they are individual, shared, multiple‑user, or public, and explain Public Service Commission status or any exemption. If you add new water or wastewater facilities, include a vicinity map showing key features within 100 feet of the boundary and on the lots; for parcels under 20 acres, also show proposed wells, septic, mixing zones, and a representative drainfield site; and show public water and sewer within 500 feet. After approval of the preliminary plat, the governing body must give you public comments within 30 days, and you must forward them to the correct sanitation reviewer based on parcel size. You must keep drainfield mixing zones and well isolation zones inside the subdivision or get an easement or owner permission; a well at least 50 feet inside the boundary may extend its zone into adjoining right‑of‑way land. These mixing and isolation rules also apply to divisions created after October 1, 2021 that were excluded from review, and reviewers cannot limit you to one proposed well location if rule setbacks are met.

Stronger protections in subdivision decisions

Beginning January 1, 2026, a governing body may deny or condition a subdivision on water or sanitation only when tied to enforceable subdivision, zoning, or other regulations, and it cannot demand extra water or sanitation paperwork beyond this law without following 76‑3‑511. Actions not banned in the approval are allowed, and local enforcement must stay consistent with how similar owners were treated in the same subdivision. Approval cannot be denied solely for school‑service impacts or solely because parcels are in the wildland‑urban interface. A local government cannot force a blanket waiver of your right to protest special or rural improvement districts; any waiver must name the specific improvements and expires 20 years after the final plat is filed. No approval may rely on encroaching features or well isolation zones onto a neighbor’s private land without that owner’s authorization. Reviews use the rules in effect when you filed a complete application (or, if current rules block the lot’s original use, the rules in effect when the lot was recorded). Reviewers must give a written denial with reasons, evidence, and how to appeal, and local reviews must be based only on this chapter.

Sponsors & Cosponsors

Sponsor

  • John Fitzpatrick

    Republican • House

Cosponsors

  • Ken Walsh

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 500 • No: 40

House vote 4/18/2025

Do Concur

Yes: 94 • No: 3

House vote 4/17/2025

Do Concur

Yes: 99 • No: 0

House vote 4/12/2025

Do Concur

Yes: 49 • No: 1

House vote 4/10/2025

Do Concur As Amended

Yes: 41 • No: 7

House vote 4/10/2025

AMD-HB0681.003.001 Galt D/PASS

Yes: 37 • No: 11

House vote 3/6/2025

Do Pass

Yes: 87 • No: 12

House vote 3/3/2025

Do Pass

Yes: 93 • No: 6

Actions Timeline

  1. Chapter Number Assigned

    5/19/2025House
  2. Signed by Governor

    5/13/2025House
  3. Transmitted to Governor

    5/7/2025House
  4. Signed by President

    5/7/2025Senate
  5. Signed by Speaker

    5/6/2025House
  6. Returned from Enrolling

    4/20/2025House
  7. Sent to Enrolling

    4/18/2025House
  8. 3rd Reading Passed as Amended by Senate

    4/18/2025House
  9. 2nd Reading Senate Amendments Concurred

    4/17/2025House
  10. Returned to House with Amendments

    4/12/2025Senate
  11. 3rd Reading Concurred

    4/12/2025Senate
  12. Committee Report--Bill Concurred

    4/11/2025Senate
  13. Committee Executive Action--Bill Concurred

    4/11/2025Senate
  14. Hearing

    4/10/2025Senate
  15. Rereferred to Committee

    4/10/2025Senate
  16. 2nd Reading Concurred as Amended

    4/10/2025Senate
  17. 2nd Reading Motion to Amend Carried

    4/10/2025Senate
  18. Committee Report--Bill Concurred as Amended

    4/8/2025Senate
  19. Committee Executive Action--Bill Concurred as Amended

    4/7/2025Senate
  20. Hearing

    3/20/2025Senate
  21. Referred to Committee

    3/14/2025Senate
  22. First Reading

    3/14/2025Senate
  23. Transmitted to Senate

    3/6/2025House
  24. 3rd Reading Passed

    3/6/2025House
  25. Committee Report--Bill Passed

    3/4/2025House

Bill Text

  • Enrolled

    4/18/2025

  • As Amended (Version 4)

    4/10/2025

  • As Amended (Version 3)

    4/8/2025

  • As Amended (Version 2)

    3/1/2025

  • Introduced

    2/24/2025

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