Need assistance getting a cannabis business license? Schedule a Free Consultation
After a tumultuous journey through the Montana Legislature and state courts, a once-popular bill to allocate millions from marijuana tax revenue for conservation and county road improvement projects has failed.
After a court order forced state legislators to do an override vote through mail on Senate Bill 442, which Gov Gianforte vetoed on the last day of the Montana 2023 legislative session, the bill lost widespread support.
Many representatives who originally supported SB 442 — 130 of 150 state lawmakers voted to pass it — changed their minds or abstained from voting, protesting the involvement of the courts.
In the House, 41 representatives voted to pass SB 442, 14 voted against it and the remaining 45 did not vote. In the Senate, 24 legislators voted in support, two against, and the remaining 24 abstained.
A two-thirds majority vote — 67 in the House and 34 in the Senate — was the threshold required to overturn Gianforte’s veto.
Two letters sent to the Montana Supreme Court, Gianforte and Secretary of State Christi Jacobsen in March and signed by some 28 senators outlined concerns of the override vote, which focused on the separation of powers between the three branches of government.
“The judicial branch, both at the district court and now the Supreme court level, has ordered the executive branch to conduct a veto override poll of the legislature on SB 442,” the letter said. “We believe the Judicial Branch has issued an order which not only violates the principles of the separation of powers, but our own legislative rules as well.”
Gianforte originally vetoed the bill over concerns of county reliance on dollars from the state general fund, writing that SB 442 “creates the illusion that the state will accept increasing responsibility for matters that are strictly under the jurisdiction of local authorities.”
But because of the veto’s timing that day, the Senate adjourned before senators had a chance to hold an override vote.
The situation inspired litigation filed last June by Wild Montana, the Montana Wildlife Federation, and the Montana Association of Counties, who all lobbied for the bill’s passage. The lawsuit argued the governor’s veto was unconstitutional because there was no chance to override it, and asked Jacobsen to poll legislators over mail.
A Lewis and Clark County district judge agreed with the plaintiffs in January, and the decision was upheld by the Montana Supreme Court. On March 19, the poll was sent to legislators, who had one month to respond.
“The District Court serves as a critical check in our system, ensuring that loopholes resulting in unconstitutional actions are not allowed. By closing one of these loopholes, the Court did its job and provided the Legislature their opportunity to override,” Jason Rittal, deputy director of the Montana Association of Counties, said in a press release. “Some legislators do not agree with the Court’s involvement and subsequent decision, which is their prerogative.”
Representatives from the three plaintiff groups and Montana Conservation Voters vowed to reintroduce the bill in the 2025 legislative session, saying Gianforte failed Montanans by vetoing it in the first place.
SB 442 would have allocated millions in annual tax revenue from marijuana sales to wildlife habitat and recreation, veterans programs, and county road improvements, in addition to the addiction recovery and criminal control programs the money was already funding.
In fiscal year 2023, the state collected $56.4 million in taxes and fees from marijuana sales, according to an economic analysis for SB 442 by the Legislative Services Division.
The analysis estimated the bill would make $10.5 million available for county road projects. For both roads and wildlife habitat improvement, Gallatin County would have received around $211,000 each year, the analysis said.
“We look forward to working with the multitude of legislators who have claimed they will eagerly support the policy in 2025, even if they refused to support the override,” Noah Marion, policy and state policy director of Wild Montana, said in a release. “Unfortunately, Montanans will have to wait yet another year for these investments they so critically need. Rest assured this will not end.”
