HELENA — Throughout the 2025 Montana legislative session, lawmakers have debated whether to change how the state allocates the money it gets from taxes on legal marijuana sales. One proposed bill that would have removed the marijuana revenue that goes toward conservation programs fell short. Now, two bills are moving through the Legislature that would keep that funding, but expand the specific ways it can be used.
“Both bills have some pretty exciting policy innovation that'll make a difference on the ground for wildlife, for fisheries, ranchers, and people who like to hunt and fish,” said Frank Szollosi, executive director of the Montana Wildlife Federation.
(Watch the video to see more about the conservation programs in these bills.)
On Friday, the Senate passed House Bill 932 38-11 on a final vote, while the House gave final approval to Senate Bill 537, 74-26. Both bills will now move to the opposite chamber for consideration.
Currently, the first $6 million of marijuana tax revenue goes to behavioral health services and substance use treatment through the state’s HEART Fund. 20% of the remainder – about $10 million a year – goes to the Habitat Montana program, which funds wildlife habitat improvement programs. Another 12% – around $6 million – is divided between state parks, trails and recreational programs and a program for non-game wildlife.
Both HB 932 and SB 537 would keep the money for parks, trails and non-game wildlife, and they would place the 20% for Habitat Montana in a new “Habitat Legacy Account.” That account would continue to fund habitat projects, but it would also provide money for a broader range of conservation tools – including setting some aside to pay for wildlife crossings over Montana highways.
“This is policy innovation, driven by science,” said Szollosi. “It expands the scope and purpose of what Montanans invest into Habitat.”
There are differences between the two bills. SB 537 allocates much of the marijuana tax revenue that currently goes into the state general fund to support law enforcement agencies across the state and the behavioral health system. HB 932 specifically directs some of the money from the Habitat Legacy Account to fund state water projects.
Both bills have been amended. Once SB 537 goes back to the Senate and HB 932 goes back to the House, those chambers will need to vote on whether to accept the current version of the legislation. If they do, the bill will go directly to Gov. Greg Gianforte’s desk. If they don’t, a conference committee will need to come up with final language.
On Thursday, MTN asked Gianforte how he would weigh these bills if one or both of them come to his desk.
“We'll have to see what form the final bill comes,” he said. “There has been an attempt in this legislature to take money that would normally offset income taxes and shift it to other purposes, and I am generally opposed to those efforts because Montana still has the highest income tax rate in the region.”
In its current form, SB 537 contains coordination language that would make HB 932 void if both of them made it through the process.
The Legislature will return on Monday, with eight working days left in the 2025 session.
