Missoula, MT — The Montana Senate gave initial approval Thursday to a bill that seeks to redirect marijuana tax revenue, traditionally allocated to conservation programs, toward funding addiction treatment and law enforcement efforts.
Senate Bill 307, introduced by Senate Majority Leader Tom McGillvray (R-Billings), passed with a 30-20 preliminary vote. The bill received broad support from Republican lawmakers, with all but two voting in favor, while all Democratic senators opposed the measure.
Currently, Montana’s marijuana tax revenue is divided among several state programs. The first $6 million is allocated to the HEART Fund, which supports behavioral health services and substance use treatment. Additionally, 20% of the remaining revenue—approximately $10 million annually—is earmarked for the Habitat Montana program, which funds wildlife habitat improvements. Another 12%, or about $6 million, is distributed between state parks, trails, and recreational programs, along with non-game wildlife conservation.
SB 307 proposes a shift in funding priorities, eliminating allocations for wildlife and recreation programs and instead increasing the amount directed toward the HEART Fund. The bill also calls for the creation of a marijuana law enforcement office within the Montana Department of Justice’s Division of Criminal Investigation. This new office would focus on investigating black market marijuana activity and prosecuting violations of marijuana laws.
McGillvray, who spearheaded the bill, argued that the marijuana tax revenue should be used to address the social impacts of marijuana legalization, rather than funding unrelated conservation efforts. He emphasized that the state already has sufficient funding for wildlife programs and stated, “A tax on a specific product should be going toward the impacts of that product rather than something unrelated.”
However, opponents of the bill voiced strong concerns, arguing that the move undermines the will of voters who approved the 2020 Initiative 190, which legalized recreational marijuana. The initiative directed marijuana tax revenue toward conservation programs. Critics, including Sen. Sara Novak (D-Anaconda), warned that the bill creates a false dichotomy between funding conservation efforts and addressing the impacts of marijuana use.
“I don’t disagree with the philosophy behind this; I just don’t think that this bill is the way to go about doing that,” Novak said during the debate.
Supporters of SB 307, however, contended that the state could find alternative ways to fund conservation programs without relying on marijuana tax revenue. Sen. Greg Hertz (R-Polson) expressed confidence that other funding sources, such as licensing fees, could help sustain both conservation and treatment efforts. “We still have time to look at our licensing fees and see where they’re going to, and make sure that we can fund both things in Montana,” Hertz said.
The bill has undergone several amendments in committee, and a new amendment adopted on the Senate floor Thursday narrowed the scope of the proposed marijuana law enforcement office, leaving more revenue in the state general fund. The revised version of SB 307 will now move to the Senate Finance and Claims Committee for further review before returning to the Senate for a final vote. If approved, it will then be passed on to the House for consideration.
Governor Greg Gianforte has also called for changes to the distribution of marijuana tax revenue, though he did not specifically comment on SB 307. At a press conference Thursday, the governor reiterated his position that a significant portion of marijuana tax revenue should be dedicated to addiction recovery and mental health services. “If we’re going to make a Schedule I drug available to the people of Montana…I think we should be using a significant portion of that revenue for addiction recovery and mental health issues,” Gianforte said.
As the bill moves through the legislative process, it is likely to continue generating debate over the balance between funding for addiction services and the conservation programs that were originally supported by voters.
