Montana lawmakers advance two bills for marijuana tax revenue

Montana lawmakers advance two bills for marijuana tax revenue

Montana legislators have moved forward with two proposed bills that aim to revise the allocation of taxes generated from recreational marijuana sales. This decision comes after the failure of Senate Bill 307, which sought to redirect marijuana tax revenue away from conservation and recreation funding.

As the 69th Legislature approaches its conclusion, two competing measures, House Bill 932 and Senate Bill 537, have gained traction. Both bills propose the establishment of a habitat legacy account, utilizing marijuana tax revenue to fund private land habitat improvement projects that include invasive species management, riparian restoration, and wildlife crossings.

House Bill 932, introduced by Rep. Ken Walsh, R-Twin Bridges, proposes a streamlined approach to funding conservation initiatives, allowing greater access for private landowners, tribal governments, and conservation districts. This bill allocates 75% of the habitat legacy account funding to a newly created land and wildlife stewardship account, managed by Montana Fish, Wildlife and Parks (FWP). Another 20% will support the Wildlife Habitat Improvement Project (WHIP), while 5% is designated for wildlife crossings. Once the stewardship account reaches $50 million, any additional revenue will solely support WHIP and wildlife crossings.

The proposal has garnered support from various organizations, including the Montana Wildlife Federation and The Nature Conservancy. FWP’s chief financial officer, Lena Havron, expressed optimism about the bill’s potential to broaden conservation efforts and improve habitat for wildlife.

Conversely, Senate Bill 537, sponsored by Daniel Zolnikov, R-Billings, introduces more complex changes to marijuana tax allocations. While it maintains current funding levels for conservation, it reallocates money previously directed to the General Fund to support substance use disorder treatment, police operations, and homelessness initiatives. This reallocation could result in a loss of over $30 million from the General Fund, affecting education, healthcare, and infrastructure projects.

Zolnikov describes SB 537 as a balanced approach that addresses law enforcement needs while also prioritizing conservation efforts. During discussions, he highlighted the necessity for enhanced enforcement resources within the Department of Revenue to ensure compliance among marijuana growers and retailers.

Both bills reflect an ongoing struggle between the legislative and executive branches regarding the use of marijuana tax revenue. The failed Senate Bill 307, which sought to eliminate funding for conservation and recreation in favor of addiction treatment and educational initiatives, underscored the contentious nature of this debate.

Supporters of both proposals emphasize the importance of funding conservation projects and the need for sustainable practices in Montana’s agricultural and recreational sectors. Critics, however, caution about the potential impact of reallocating funds away from the General Fund, which supports vital state services.

As the legislative session nears its conclusion, lawmakers will debate these bills further, determining how best to allocate the millions of dollars generated from recreational marijuana sales in Montana.

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