The Montana Senate has given initial approval to a new bill aimed at redirecting marijuana tax revenue. On Thursday, Senate Bill 307 passed with a vote of 30-20, with nearly all Republicans in support and all Democrats opposing the measure. The bill is sponsored by Senate Majority Leader Tom McGillvray, a Republican from Billings.
Currently, the first $6 million of marijuana tax revenue is allocated to behavioral health services and substance use treatment through the state’s HEART Fund. After that, 20% of the remaining funds, roughly $10 million per year, goes to the Habitat Montana program, which improves wildlife habitats. Additionally, 12%, about $6 million, is divided among state parks, trails, recreational programs, and non-game wildlife initiatives.
Senate Bill 307 proposes to eliminate funding for wildlife and recreation programs. It aims to increase the allocation to the HEART Fund and establish a new office for marijuana law enforcement under the Montana Department of Justice’s Division of Criminal Investigation. This office would focus on combating the black market and prosecuting violations of marijuana laws.
The original Initiative 190, which legalized recreational marijuana in Montana, directed tax revenue toward conservation programs. However, lawmakers noted that a ballot measure cannot legally dictate fiscal allocations. The Legislature modified the revenue distribution when legal sales were established in 2021. Many lawmakers expressed concerns during the debate, stating they had received significant public feedback against removing the funding that voters had approved.
McGillvray argued that it was inappropriate for Initiative 190 to dictate revenue distribution. He believes that the tax revenue from a specific product should address the impacts of that product rather than unrelated programs. He stated, “I’m making a policy choice here.”
Opponents of SB 307 argued that it falsely presents a choice between funding conservation and addressing marijuana-related issues. Senator Sara Novak, a Democrat from Anaconda, expressed that the bill undermines the funding structure established by the 2021 Legislature. She emphasized the need to consider prevention, education, treatment, and the related crime issues but disagreed with the current approach.
Supporters of the bill, like Senator Greg Hertz from Polson, believe that the state can identify alternative funding sources for the affected programs. He stated, “We need to move this bill along,” and mentioned the possibility of reviewing licensing fees to ensure that both conservation and marijuana-related initiatives can be funded in Montana.
SB 307 underwent extensive amendments in committee, and senators adopted an additional amendment during Thursday’s floor discussion. McGillvray proposed this change to narrow the focus of the marijuana law enforcement office while retaining more tax revenue within the state general fund. Governor Greg Gianforte’s budget proposal also seeks to redirect some marijuana revenue.
