SB 537 and HB 932 Seek Balanced Use of Montana’s Cannabis Taxes

9 April 2025

Montana’s marijuana tax revenue — about $33 million a year — is about to be put to broader use under two new bipartisan bills aimed at balancing the state’s top priorities: protecting wildlife, strengthening rural law enforcement, and expanding addiction treatment programs.

In a rare show of unity, state lawmakers advanced Senate Bill 537 and House Bill 932, after months of debate over how marijuana revenues should be spent. Earlier proposals to strip conservation programs of funding met fierce backlash from outdoor groups, hunters, and conservationists. The new bills represent a compromise that keeps conservation funding intact while expanding support for other urgent needs.

What’s Changing?

Senate Bill 537, which passed the Senate unanimously, creates a new "Habitat Legacy Account" to preserve the 20% conservation allocation from marijuana taxes. It also allows funding for critical projects like wildlife crossings, noxious weed control, and land conservation easements — efforts central to Montana’s outdoor economy.

At the same time, SB 537 dedicates major new funding to public safety and recovery:

• 20% of revenue would go to the HEART Fund, supporting substance abuse recovery services.
• 31% would be directed toward grants for rural police and sheriff's departments.
• Additional funds would support DOJ canine training, sexual assault kit testing, and mental health crisis intervention teams.

House Bill 932, passed by the House with wide support, reinforces habitat-focused spending by creating a Land and Wildlife Stewardship account. It also broadens how wildlife habitat funds can be used, allowing investments in forest management, irrigation, and wetland protection.

Who’s Affected — and How:

• Conservationists and outdoor enthusiasts will see continued and expanded investment in Montana’s natural resources — a win for hunters, anglers, and tourism-related businesses.

• Law enforcement agencies, especially in rural areas, will gain critical resources, with every department set to receive at least $50,000 in base grant funding.

• Communities impacted by addiction will benefit from expanded HEART funding, offering more support for prevention, treatment, and recovery programs.

• Local governments and taxpayers stand to benefit from better-managed funding that meets a wider range of community needs without taking money away from vital conservation projects.

While a few lawmakers raised concerns that too much of the revenue still leans toward conservation, the compromise bills gained momentum for offering a more holistic, future-focused approach.

What’s Next?

Senate Bill 537 now moves to the House Taxation Committee, while House Bill 932 heads to the Senate Fish and Game Committee for further debate. If passed, the two measures would reshape how Montana invests its cannabis revenue — balancing the needs of the land, public safety, and public health alike.