HOUSE JOINT RESOLUTION NO. 39

INTRODUCED BY R. DALE

A JOINT RESOLUTION OF THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA AUTHORIZING AN INTERIM STUDY OF THE FISCAL EFFECTS, REVENUE IMPLICATIONS, POTENTIAL STATE LIABILITY FOR A TAKINGS ACTION, IMPACT ON SCHOOL EQUALIZATION REVENUE, AND THE SOCIOECONOMIC IMPACTS OF INITIATIVE MEASURE NO. 137.

WHEREAS, the November 1998 passage of Initiative Measure No. 137 (I-137) banned a specific type of gold and silver mining and ore processing that has been used in Montana and elsewhere for years and that is the best available technology at this time; and

WHEREAS, many of Montana's gold and silver deposits may be economically developed using only that process; and

WHEREAS, several private investors have expended their own time and resources in advancing the development of some of these deposits according to Montana laws and regulations; and

WHEREAS, several proposed mineral exploration and development projects have been effectively prohibited from going forward to production; and

WHEREAS, the substantial value of these investments in mineral exploration and mine permitting activities affected by I-137 has been significantly reduced with the passage of I-137; and

WHEREAS, the now prohibited mineral development activities may have had significant economic impacts to the State of Montana; and

WHEREAS, the socioeconomic impacts to Montana of the loss of these potential mineral developments have not been adequately or independently identified and quantified.

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE AND THE HOUSE OF REPRESENTATIVES OF THE STATE OF MONTANA:

(1) That, in regard to the affected gold and silver mineral exploration and mine permitting activities underway before November 3, 1998, the appropriate interim legislative committee be requested to study the identifiable and quantifiable impacts on the following that are a direct result of the passage of I-137:

(a) impacts on state and local government tax revenue;

(b) effect on state school equalization funding;

(c) socioeconomic impacts on the affected communities and the state; and

(d) the degree of legal liability and potential costs to the state as a defendant in any possible property takings litigation.

(2) That the study be concluded by September 30, 2000, and that the results of the study be reported and provided to the Governor, the members of the 57th Legislature, and the Department of Revenue.

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