Montana’s rugged landscapes, from its sprawling prairies to its towering peaks, are a testament to nature’s grandeur. In 2025, the state’s lawmakers are harnessing an unexpected ally—marijuana tax revenue—to safeguard these treasures through private land preservation. With recreational marijuana legalized via Initiative 190 in 2020, Montana now collects approximately $100 million annually from a 20% tax on sales, a figure bolstered by the state’s thriving cannabis market, including Marijuana Online platforms, Marijuana Wholesale operations, and Marijuana White Label products. Two competing legislative proposals, Senate Bill 537 (SB 537) and House Bill 932 (HB 932), have emerged to redirect these funds toward conservation, sparking a lively debate about balancing ecological goals with fiscal flexibility. Both bills, which cleared significant legislative hurdles by May 2025, aim to establish a “habitat legacy account” to fund habitat improvement projects on private land and acquire new wildlife management areas. This blog delves into the intricacies of these proposals, their implications, and the broader context of Montana’s cannabis-driven conservation efforts.

The Green Gold Rush

Montana’s cannabis industry has flourished since recreational sales began in January 2022, generating over $150 million in tax revenue by late 2024. The state’s Marijuana Online marketplaces have made purchasing accessible, while Marijuana Wholesale suppliers ensure steady distribution to dispensaries. Additionally, Marijuana White Label products, customized for retailers, have expanded market reach. This economic boom, with sales surpassing $1 billion in early 2025, has created a robust revenue stream. Initiative 190 originally allocated 49.5% of this revenue to conservation, including 37% for the Habitat Montana program, which supports wildlife habitat preservation. However, the Montana Constitution prohibits citizen initiatives from dictating appropriations, giving lawmakers the final say. This has led to a tug-of-war over how to allocate these funds, with conservationists advocating for continued investment in programs like Habitat Montana, which has preserved areas like the Big Snowy Wildlife Management Area.

Senate Bill 537: The Cops and Conservation Compromise

Introduced by Sen. Daniel Zolnikov (R-Billings), SB 537 is dubbed the “cops and conservation bill” for its dual focus on law enforcement and environmental stewardship. The bill proposes redirecting the 20% of marijuana tax revenue currently allocated to Habitat Montana into a new habitat legacy account. Of this, 75% would fund a land and wildlife stewardship account for habitat projects, 20% would bolster the Wildlife Habitat Improvement Program (WHIP) for noxious weed control, and 5% would support wildlife crossings. SB 537 also allocates $30 million of the $100 million annual marijuana tax revenue, previously directed to the general fund, to priorities like substance use disorder treatment, police operations, and homelessness support. Passed with 75% legislative support by April 30, 2025, the bill reflects broad bipartisan backing, endorsed by groups like the Montana Coalition to Solve Homelessness. However, its impact on the general fund has raised concerns, as Gov. Greg Gianforte has criticized statutory revenue allocations for limiting future legislative flexibility.

House Bill 932: A Focused Conservation Vision

Sponsored by Rep. Ken Walsh (R-Twin Bridges), HB 932 takes a narrower approach, targeting only the 30% of marijuana tax revenue currently supporting conservation. Like SB 537, it establishes a habitat legacy account, with 75% funneled to a land and wildlife stewardship account and the rest split between wildlife crossings and an expanded WHIP. Uniquely, HB 932 allocates $4 million for water-storage projects coordinated with the Department of Natural Resources and Conservation, addressing Montana’s drought challenges. Passed with 84% legislative support on April 30, 2025, the bill preserves existing allocations for state parks (4%), trails (4%), and non-game wildlife (4%). Walsh has expressed uncertainty about Gianforte’s stance on SB 537, suggesting HB 932’s focused scope might appeal to the governor’s preference for fiscal flexibility. Conservation groups, including Wild Montana, praise HB 932 for enhancing private land stewardship without diverting funds from other programs.

Private Land Preservation: A Win for Wildlife

Both bills prioritize private land conservation, a critical strategy in Montana, where 70% of land is privately owned. The habitat legacy account would enable Montana Fish, Wildlife and Parks (FWP) to fund projects like wetland restoration, forest management, and irrigation upgrades on private properties. These efforts combat threats like drought, wildfires, and invasive species, which degrade wildlife habitats. For instance, WHIP’s expansion under both bills would allow funds to support soil enhancement and fish passage projects, beyond just noxious weed control. Jake Brown of Wild Montana testified on April 17, 2025, that these initiatives “increase the pace and scale of habitat stewardship across rural Montana.” By leveraging marijuana tax revenue, Montana could preserve open spaces vital for species like elk and pronghorn, while maintaining public access through programs like Habitat Montana, which has secured conservation easements across 40-year leases.

The Governor’s Dilemma

As SB 537 and HB 932 await Gov. Gianforte’s decision, tension looms. Gianforte, a Republican, has consistently opposed statutory revenue allocations, arguing they “tie the hands of future legislatures.” His budget proposals have favored redirecting marijuana taxes to law enforcement and substance use programs, citing adequate funding for Habitat Montana. SB 537’s coordination clause, which voids HB 932 if both are signed, complicates the outcome. Conservation advocates, including the Montana Wildlife Federation, argue that reallocating funds away from conservation defies the spirit of Initiative 190, which 57% of voters approved. Meanwhile, industry stakeholders, from Marijuana Online retailers to Marijuana Wholesale distributors, watch closely, as the cannabis market’s stability depends on predictable tax policies. Gianforte’s decision, expected soon after May 6, 2025, will shape Montana’s conservation landscape for years.

A Legacy in the Making

Montana’s competing proposals reflect a broader national trend of using cannabis revenue for public goods. States like Colorado and Washington allocate marijuana taxes to education and infrastructure, but Montana’s focus on private land preservation is unique. The habitat legacy account, whether funded through SB 537’s broad approach or HB 932’s targeted strategy, promises to bolster rural economies by supporting agriculture and outdoor recreation, which generate $7 billion annually. The state’s cannabis industry, driven by Marijuana White Label innovation and online accessibility, underscores the potential for “green gold” to fund green spaces. As lawmakers and Gianforte navigate this fiscal crossroads, Montanans await a decision that could cement a legacy of conservation, ensuring that the state’s wild places remain vibrant for generations. With $100 million in annual revenue at stake, the choice is not just financial—it’s a vision for Montana’s soul.

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