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Montana Lawmakers advance competing bills to reallocate marijuana tax revenue while preserving conservation funds – MEDCAN24

This bill allocated dollars for important Montana industries such as agriculture and outdoor tourism. “It’s good for businesses.”

Micah Drew Daily Montanan

The Montana Legislature has passed bills in both chambers that would shift the marijuana tax revenues but still preserve funding for conservation.

The Senate Committee on 1 April heard a bill which, after being opposed by many conservationists, would have stopped marijuana money from flowing to Montana Fish, Wildlife and Parks.

The two new bills each passed their respective house of origin with significantly more bipartisan support—Senate Bill 537 passed on Saturday 45–0, while House Bill 932 passed the same day 71–27.

SB 537 introduced by Sen. Daniel Zolnikov of Billings, keeps funding in place for conservation programs but allows more flexibility with how funds are used. This bill increases the distributions made to the Healing and Ending Addiction through Recovery and Treatment account (HEART), and also adds funds for the Department of Justice including significant investments in law-enforcement.

Zolnikov stated on the Senate floor, April 4th: “I call this the Cops and Conservation Act.” We hear from both sides of the aisle that there are going to be more problems, and we have to help these guys. This bill was amazing because the opposing side supported the priorities of my side. While working with the opposite side of aisle, it seemed that they were very comfortable in clarifying this side’s buckets of priorities as well as helping the conservation aspect. We’re filling gaps in the end.”

Zolnikov’s Bill emerged as a piece of compromise legislation after the pushback against Senate Bill 307. It was brought by Senate majority leader Tom McGillvray(R-Billings), who would have diverted marijuana revenue away from conservation and towards law enforcement.

McGillvray explained that his bill would allow lawmakers to choose whether funding trails or wildlife was more important than people who could be affected by marijuana.

Zolnikov opted to give the stakeholders what they want by distributing the approximately $33 million in tax revenues currently deposited into the State’s General Fund.

The current revenue allocation of 4 percent for each state park, trail and recreation, and nongame animals remains unchanged under the new structure. The 20% of funds that are currently allocated to FWP’s Habitat Montana Fund will instead go into a new Habitat legacy account, according to Zolnikov. This allows for broader use of these funds.

According to the bill, 75 percent of funds in the account must be used solely to fund wildlife habitat projects, while the rest may be used for various conservation-related projects including noxious weed programs, grants for conservation districts, big game and wildlife highway crossings and land and water acquisitions or easement purchases.

Zolnikov explained, “There’s buckets of all different types in there. Conservationists have worked hard and backed them.” If you attended the hearing you would have seen the funniest group of people ever.

The HEART Fund, which receives a fixed $6 million in marijuana revenues, will be increased to a 20% allocation. This allows the fund to grow through tax revenue.

Other additions that target McGillvray’s identified needs, such as increasing law enforcement, include: 2,5 percent of the budget for DOJ dog training, 1,5 percent of the budget for DOJ sexual abuse exams and kits; 0.25 percent of the budget for Board of Crime Control, to finance crisis intervention training.

These grants include the distribution of $50,000 each to police departments, sheriff’s offices, and tribal police departments, as well proportional allocations according to department sizes.

The bill is pretty comprehensive. Zolnikov added, “Working on the bill I was forced to become familiar with a number of issues that are not being addressed. This has helped us fill in some gaps for future use.”

McGillvray said to reporters that he thought many things in Zolnikov’s bill were intelligent, including letting tax revenues grow the HEART Fund, but he had concerns over using funds for conservation.

“The relationship between marijuana income and marijuana harms just makes for smart tax policy.” “Unfortunately, the whole thing got off on the wrong foot and was difficult to turn around,” said he.

McGillvray said that taking revenue out of the general fund to pay for law enforcement would be a big bite and could lead to a fight with the Governor’s Office.

Rep. Ken Walsh of Twin Bridges (R) introduced HB932, which only targets the existing 30 percent in conservation funding that Habitat Montana receives.

This account works the same as SB 537. It transfers funds from SB537 to a Habitat Legacy Account.

The HB-932 would divert 75 percent to a Land and Wildlife Stewardship Fund that could be solely allocated for habitat projects.

Walsh’s Bill would significantly expand the use of WHIP funding. Currently, WHIP funds are only used to treat noxious plants.

Walsh explained that “this bill expands the bucket of private landowners and conservation groups working together with fish, wildlife and Parks,”

He listed off some possible applications—irrigation infrastructure, forest management, prescribed fire, fish passage, soil enhancement and wetland protection.

“We could even have wildlife crossings to avoid hitting as many elk or deer in the road,” said he.

The bill was opposed by some for funding conservation programs.

This bill will lock in marijuana revenues for wildlife management. It’s important that this group understands it. But we have been listening all session about what’s going on in our correctional system—we don’t have enough space, don’t have enough space,” Rep. Fiona Nave (R-Columbus) said. This is drug-driven. We need the marijuana funding…to be available for drug treatment and law enforcement.”

The bill was overwhelmingly supported by lawmakers under the expanded scope.

This bill allocated dollars for important Montana industries such as agriculture and outdoor economies. Ed Buttrey said, “This is a great bill for the businesses.”

The Senate Fish and Game Committee is currently hearing HB 932, while the House Taxation Committee will hear SB 537 later in this month.

The original publication of this story is Daily Montanan.

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Mike Latimer provided the photo.

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