Montana Senate Bill 307 was approved today by the Business, Labor, and Economic Affairs Committee.
Sponsored by State Senator T. McGillvray, the bill was given approval by the committee by a vote of 8 to 4, moving it towards a vote of the full House. The measure would significantly alter the allocation of marijuana tax revenue in Montana, redirecting funds toward prevention services, law enforcement, and addiction treatment programs.
Under current law, Montana imposes a 20% sales tax on recreational marijuana, with the revenue distributed to various state programs, including conservation efforts, veterans’ services, and the general fund. SB 307 proposes a restructuring of this allocation by establishing a Marijuana Prevention Account, a Marijuana Law Enforcement Operations Account, and a Marijuana Tax Revenue Accountability Council to oversee funding distribution.
The Marijuana Prevention Account, managed by the Department of Public Health and Human Services, would fund substance misuse prevention initiatives, particularly targeting youth, as well as suicide prevention efforts. The bill mandates that grants from this account be used to improve access to prevention services and expand community-based programs grounded in evidence-based practices.
The bill also introduces a Marijuana Law Enforcement Operations Account, directing revenue to the Department of Justice to combat illegal marijuana operations. This includes the establishment of a specialized marijuana law enforcement office featuring two dedicated enforcement teams—one for western Montana and one for eastern Montana—as well as a canine unit. Additionally, a portion of the account would provide grants to local law enforcement agencies for marijuana-related policing efforts.
Another significant aspect of SB 307 is the formation of the Marijuana Tax Revenue Accountability Council, composed of state officials and behavioral health professionals. This council would oversee revenue distribution, advise state agencies on substance misuse prevention strategies, and compile an annual marijuana impact report. This report would provide data on marijuana use patterns, public health effects, and law enforcement trends related to legal marijuana sales.
Current Distribution of Marijuana Tax Revenue in Montana
- 20% to the Department of Fish, Wildlife, and Parks for wildlife habitat funding.
- 4% to the State Park Account for park maintenance and improvements.
- 4% to the Trails and Recreational Facilities Account to support outdoor recreation.
- 4% to the Nongame Wildlife Account for conservation programs.
- 3% (or $200,000, whichever is less) to the Veterans and Surviving Spouses State Special Revenue Account for veterans’ services.
- $300,000 to the Department of Justice for grants to local law enforcement agencies to purchase and train drug detection canines.
- $150,000 to the Board of Crime Control for crisis intervention team training.
- Up to $6 million to the Healing and Ending Addiction Through Recovery and Treatment (HEART) Account for substance use and mental health services.
- Remaining revenue goes to the state general fund after covering administrative costs.
Proposed Distribution Under SB 307
- 40% (increased from 20%) to the HEART Account to fund addiction recovery and treatment programs.
- 16% to a newly created Marijuana Prevention Account, funding youth substance misuse prevention and suicide prevention programs.
- 8% to a newly created Marijuana Law Enforcement Operations Account, funding:
- A specialized Marijuana Law Enforcement Office under the Department of Justice.
- Two dedicated marijuana enforcement teams (western and eastern Montana).
- A district attorney and a canine unit for marijuana-related investigations.
- Grants for local law enforcement to combat illegal marijuana activity.
- $200,000 to the Veterans and Surviving Spouses State Special Revenue Account (same as before).
- $150,000 to the Board of Crime Control for crisis intervention training (same as before).
- Remaining revenue directed to the state general fund after covering administrative costs.
Montana voters legalized recreational marijuana in 2020 through Initiative 190, with legal sales beginning in January 2022. The current regulatory framework allows for both adult-use and medical marijuana sales, with counties given the option to permit or prohibit dispensaries through local elections. Revenue from marijuana taxes is currently divided among conservation projects, addiction treatment, veterans’ services, and the general fund.
If enacted, SB 307 would shift more revenue toward prevention and law enforcement while increasing the allocation to the Healing and Ending Addiction Through Recovery and Treatment (HEART) Account. The bill would also expand reporting requirements for marijuana-related public health data. These changes would take effect on July 1, 2025.
For the full text of the bill, click here.
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