Montana Governor Greg Gianforte has vetoed Senate Bill 537, a proposal that would significantly reshape how the state allocates marijuana tax revenue.
The bill, introduced by Senator Daniel Zolnikov, passed with strong bipartisan support in both chambers—approved 42 to 8 in the Senate and 17 to 6 in the House. With a two-thirds vote in both chambers, lawmakers now have the option to override the governor’s veto and enact the bill without executive approval.
Senate Bill 537 proposed major revisions to the current tax structure surrounding legal marijuana sales in Montana. It would have created multiple new accounts funded by marijuana tax revenue, including the Habitat Legacy Account, a Land and Wildlife Stewardship Fund, and a Big Game and Wildlife Highway Crossings Account. The measure also expanded allocations to the Healing and Ending Addiction Through Recovery and Treatment (HEART) account and introduced support for homeless shelters.
Additionally, the bill increased law enforcement funding through grants and included funding for drug-detection canine training, crisis intervention training, and sexual assault forensic exams. It also allowed for up to $2 million in grants to nonprofit homeless shelters for case management services.
Supporters of the bill viewed it as a comprehensive approach to distributing Montana’s growing marijuana tax revenue in a way that supports public safety, conservation, and addiction recovery services. The proposal included automatic transfers from the marijuana state special revenue account once a basic operating reserve threshold was met, ensuring consistent funding for the new programs.
With the legislature having passed SB 537 with veto-proof majorities, attention now turns to whether lawmakers will convene to override the veto. If they succeed, the bill will take effect July 1, 2025.
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