SENATE BILL NO. 345

INTRODUCED BY D. SHEA, C. AHNER, S. ANDERSON, G. BECK, T. BECK, R. BITNEY, R. CLARK, W. CRISMORE, R. DALE, B. DEPRATU, G. DEVLIN, S. GALLUS, D. GRIMES, L. GROSFIELD, D. HARGROVE, J. HARP, T. KEATING, S. KITZENBERG, J. LYNCH, G. MASOLO, W. MCNUTT, S. ORR, B. PAVLOVICH, J. QUILICI, S. ROSE, P. SLITER, M. SPRAGUE, S. STANG, B. STORY, C. SWYSGOOD, B. TASH, F. THOMAS, J. WITT

A BILL FOR AN ACT ENTITLED: "AN ACT AUTHORIZING A LOCAL GOVERNING BODY TO ADOPT AN ORDINANCE BY INITIATIVE OR REFERENDUM, FOLLOWING A TWO-THIRDS VOTE OF THE ELECTORATE, ALLOWING THE OPEN-PIT MINING OF GOLD OR SILVER USING HEAP LEACHING OR VAT LEACHING PROCESSES WITH CYANIDE ORE-PROCESSING REAGENTS; PROVIDING FOR THE CONTINUATION OF MINE AND EXPLORATION OPERATIONS THAT MET CERTAIN CONDITIONS ON NOVEMBER 3, 1998; AMENDING SECTIONS 7-1-111 AND 82-4-390, MCA; AND PROVIDING AN IMMEDIATE EFFECTIVE DATE."

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

NEW SECTION. Section 1. County authorization of cyanide heap leach and vat leach open-pit gold and silver mining. The people of a county by initiative or pursuant to a referendum, in the manner provided in Title 7, chapter 5, part 1, may , with a two-thirds vote of the electors voting on the proposal, enact an ordinance allowing the open-pit mining for gold or silver using heap leaching or vat leaching with cyanide ore-processing reagents on land within the county in which the mine is located and by an identical initiative or referendum in the adjacent downstream county.

Section 2. Section 7-1-111, MCA, is amended to read:

"7-1-111. Powers denied. A local government unit with self-government powers is prohibited from exercising the following:

(1) any power that applies to or affects any private or civil relationship, except as an incident to the exercise of an independent self-government power;

(2) any power that applies to or affects the provisions of 7-33-4128 or Title 39 (labor, collective bargaining for public employees, unemployment compensation, or workers' compensation), except that subject to those provisions, it may exercise any power of a public employer with regard to its employees;

(3) any power that applies to or affects the public school system, except that a local unit may impose an assessment reasonably related to the cost of any service or special benefit provided by the unit and shall exercise any power that it is required by law to exercise regarding the public school system;

(4) any power that prohibits the grant or denial of a certificate of public convenience and necessity;

(5) any power that establishes a rate or price otherwise determined by a state agency;

(6) any power that applies to or affects any determination of the department of environmental quality with regard to any mining plan, permit, or contract, except as provided in [section 1];

(7) any power that applies to or affects any determination by the department of environmental quality with regard to a certificate of environmental compatibility and public need;

(8) any power that defines as an offense conduct made criminal by state statute, that defines an offense as a felony, or that fixes the penalty or sentence for a misdemeanor in excess of a fine of $500, 6 months' imprisonment, or both, except as specifically authorized by statute;

(9) any power that applies to or affects the right to keep or bear arms, except that a local government has the power to regulate the carrying of concealed weapons;

(10) any power that applies to or affects a public employee's pension or retirement rights as established by state law, except that a local government may establish additional pension or retirement systems;

(11) any power that applies to or affects the standards of professional or occupational competence established pursuant to Title 37 (professions and occupations) as prerequisites to the carrying on of a profession or occupation;

(12) any power that applies to or affects Title 75, chapter 7, part 1 (streambeds), or Title 87 (fish and wildlife)."

Section 3. Section 82-4-390, MCA, is amended to read:

"82-4-390. Cyanide heap and vat leach open-pit gold and silver mining prohibited. (1) Open-pit mining for gold or silver using heap leaching or vat leaching with cyanide ore-processing reagents is prohibited except in those local jurisdictions that have allowed these mining processes through the adoption of a local ordinance as authorized in [section 1] and except as described in subsections (2) and (3).

(2) A mine described in this section operating on November 3, 1998, may continue operating under its existing operating permit or any amended permit that is necessary for the continued operation of the mine.

(3) A person with a property containing a gold or silver deposit that may be processed using open-pit cyanide heap leaching or vat leaching recovery technology may continue operations under this part, including permitting and related activities toward and including eventual operation of a mine that would otherwise be prohibited under subsection (1), if on November 3, 1998, the person had:

(a) a valid exploration license with bonding in place;

(b) a filed small miner exclusion statement; or

(c) an application pending for an operating permit."

NEW SECTION. Section 4. Codification instruction. [Section 1] is intended to be codified as an integral part of Title 7, chapter 5, part 21, and the provisions of Title 7, chapter 5, part 21, apply to [section 1].

NEW SECTION. Section 5. Effective date. [This act] is effective on passage and approval.

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