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Montana Governor signs bill directing marijuana tax revenue to environmental conservation and wildlife

Montana’s changing and growing, so now is the right time to invest into our outdoor lifestyle.

By Amanda Eggert, Montana Free Press 

Montana Gov. Greg Gianforte (R) announced on Friday that he had recently signed House Bill 932, a proposal that would expand uses for the conservation-dedicated tax revenues the state collects on recreational marijuana sales.

HB 932 will allow projects on private property to be included in the protection of wildlife habitats and improvements supported by marijuana tax. The law was set to go into effect on July 1.

Before the latest legislative reform, Habitat Montana was the sole beneficiary of the roughly $10 million of habitat-conservation-dedicated funding that marijuana revenues support. Habitat Montana has been used by Montana Fish, Wildlife and Parks to secure conservation easements and leases for 40 years and purchase Wildlife Management Areas.

The $10 million in conservation funds will be deposited into the new “habitat heritage account” if HB 932 is passed this summer.

It will then be subdivided into three distinct funding buckets.

Habitat Montana will receive 75 percent of this money. State water projects are also included. Approximately 20 percent of remaining funds will be allocated to the Wildlife Habitat Improvement Program or WHIP. The other 5 percent is going towards the newly-established Wildlife Crossings account, which aims at reducing the number of wildlife and vehicle collisions on Montana’s interstates and highways.

Rep. Ken Walsh of Twin Bridges (R) spoke to MTFP in May about the support that HB 932 provides for public-private partnerships for habitat improvement under a WHIP expanded umbrella and for efforts to minimize wildlife-vehicle crashes, which he called a “bigger and bigger deal.” Walsh praised HB 932, which aims to reduce the amount of bureaucracy involved in implementing conservation programs.

The HB 932 bill was passed at the close of the session in 2025, with bipartisan support. The list of supporters included Wild Montana, Montana Conservation Voters Education Fund and Rocky Mountain Elk Foundation, as well as the Theodore Roosevelt Conservation Partnership.

Noah Marion, Wild Montana’s political and state-policy director, said in a release issued on Friday that Gianforte’s support for HB932 was a “long overdue victory” for wildlife, conservation and access. Montana is growing and changing. Now’s the right time to invest into our outdoor lifestyle.

Jake Schwaller is the chair of Montana’s Backcountry Hunters and Anglers chapter. He described HB932 as a “big victory” for anglers, hunters and wildlife.

This bill will invest directly in our future outdoor heritage by funding projects to protect migration corridors and improve habitat. These are real, lasting benefits that will be felt on the ground—across trailheads, stream crossings and the critical landscapes where wildlife move and thrive,” Schwaller said Friday.

HB 932 allows landowners to apply for funds in order to mitigate invasive species, remove fences or modify them, restore riparian areas, conserve soil, eliminate conifers, and support other habitat-improvement projects.

FWP’s chief finance officer gave testimony in favor of HB 932 at the hearings for this bill. Gianforte declined, in general, to comment on his stance towards HB932 compared to a rival measure called Senate Bill 5307.

Senator Daniel Zolnikov’s SB 537 (R-Billings) would also establish a legacy habitat account using marijuana funds, but it is different from HB 932, in that the funding does not go to water storage-specific projects and other parts of tax revenue are redistributed.

The two measures were widely supported by lawmakers. However, Senate GOP leaders questioned if Gianforte was going to be wary of the $30 million that would hit the General Fund under SB 537. This includes additional or new allocations for initiatives such as substance abuse disorder treatment, homelessness, and law enforcement.

Gianforte, during a press conference in April, did not mention which measures he favored, but said that when legislators “attach specific revenue streams to certain purposes, they really tie the hands of future Legislatures or administrations.”

According to the website that tracks bills, SB 537 had not yet been sent to the Governor by Friday night, despite the fact it passed the final vote on the same date as HB 932.  The governor’s spokesperson did not reply to MTFP before publication about the plans of SB 537.

Zolnikov told MTFP that SB-537 was still a proposal.

“Hopefully [Gianforte] Zolnikov stated that the government should also sign 537 so as to return the major part of the tax revenue from marijuana each year back to local communities in order for them address the impacts. Over $17 million would go toward local law enforcement. Another $7 million will be spent on behavioral health. And the remainder goes to funding drug tests, rape kits, and addiction. “All of these services have been severely underfunded. Many would argue that these are vital to both rural as well as urban communities throughout the state.”

Walsh stated that Gianforte’s signature improved HB932’s chances, however that there are other possible twists and turns in the path of the bill. SB 537 contains a clause that states it will take priority if both HB 932 and SB 537 are passed. This means a legislative override could invalidate Zolnikov’s proposal.

Both measures were passed by large margins. SB 537 received affirmative support from 116 legislators, while HB 932 had 126 lawmakers approve it. Overriding a gubernatorial-veto requires a majority of two thirds.

This story was originally published by Montana Free Press at montanafreepress.org.

Montana lawmakers pass bill that allows cannabis Compacts between Indian Tribes and Governor

Mike Latimer provided the photo.

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