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Montana Lawmakers Override Governor’s Veto On Use Of Cannabis Taxes

The state of Montana is no stranger to challenging issues, particularly when it comes to determining how best to fund county road maintenance. Rural gravel roads often provide primary access to millions of acres of public lands and are maintained by county governments at a cost of millions of dollars annually.

Property taxes have been used as the primary source for funding these projects, but more is needed in many cases.

This issue has been further complicated due to the legalization of recreational cannabis use in Montana in 2021, which brought an influx of additional revenue from cannabis taxes.

This money has become a hot topic among state lawmakers and Gov. Greg Gianforte, who recently vetoed Senate Bill 442 – legislation proposed by Republican senator Mike Lang that would allocate 20% of cannabis tax revenue to the counties for road maintenance.

The governor’s decision has sparked a heated debate over how best to use this additional revenue, with many arguing that it should be used as an opportunity to right other wrongs and fund programs or replace allocated money for projects in Montana.

Overview of Senate Bill 442 and Governor Gianforte’s Veto

SB 442 was sponsored by Republican Senator Mike Lang (SD 17), who worked hard to develop a sensible county road funding supplement. In its final version, SB 442 allocated 20% of the tax revenues generated by the sale of marijuana in Montana to counties for road maintenance – a total of around $10.4 million annually across all 56 counties.

Lang’s proposal gained widespread bipartisan support during the legislative session, with 130 out of 150 state legislators voting in favor. However, it was opposed by Gov. Gianforte, who indicated that he preferred to spend the funds on public safety and law enforcement instead.

On May 2 – the last day of Senate deliberations – Gianforte vetoed SB 442 before the legislature could have an opportunity to override his decision. His letter of explanation expressed concern over how local jurisdictions would reduce their services while keeping taxes higher on their citizens.

Reaction to the Veto

The governor’s veto of SB 442 was met with strong opposition from several groups, including the Montana Wildlife Federation (MWF) and the Montana Association of Counties (MACo). These organizations argued that Gianforte’s quick decision deprived legislators of the opportunity to override his veto.

In response, MACo filed a lawsuit against the governor in order to force him to return SB 442, along with his reasons for the veto, back to the Secretary of State’s Office so that they could poll the legislature once again in order to determine whether a 2/3 majority exists to overturn the governor’s veto.

MWF also filed their own lawsuit against the governor, arguing that “Contrary to the wishes of 130 legislators and countless Montanans, the governor’s veto takes tens of millions of dollars away from wildlife, roads, rural communities, and veterans” said Frank Szollosi, executive director for Montana Wildlife Federation. “Our Constitution provides that the Legislature gets a chance to override a veto. The executive branch cannot stand in the way.”

The legal challenges brought forward by these organizations have highlighted how significant this additional revenue from cannabis taxes is in addressing the state’s infrastructure needs.

While Gov. Gianforte expressed concern over local jurisdictions reducing their services while keeping taxes higher on their citizens, Petroleum County Commissioner Ken Iverson argued that such fears are unfounded as there is no fluff anywhere in county budgets.

“We struggle with the amount of money that we’re given trying to get across 550 miles of roads and do a good job,” Iverson said. “We enjoy that the recreationists can come out to Petroleum County and do what they do, but it’s sure hard on the locals to maintain a road that we would like to have and use as well.”

Veto Overturned

Montana state lawmakers voted to override Gov. Greg Gianforte’s veto of Senate Bill 442. The override passed with strong bipartisan support, with 108 out of 150 legislators voting in favor of it and only 19 against it.

This was despite strong objections on behalf of Gov. Gianforte who had argued that such funds should be used to fund public safety and law enforcement instead.

The successful override is a victory for local governments in Montana and groups like the Montana Wildlife Federation (MWF) and the Montana Association of Counties (MACo) who had filed lawsuits against the governor for his veto.

This additional revenue from cannabis taxes can now be used to address the state’s infrastructure needs and provide an opportunity to right other wrongs or replace allocated money for projects in Montana.

This additional revenue has become an essential source for funding much-needed projects and programs in Montana, allowing state lawmakers to right various wrongs or replace allocated money for projects in the state.

The legal battles between Gov. Gianforte and Montana groups over cannabis taxes is a prime example of how difficult it can be to find consensus when negotiating the best ways to use this additional revenue.

Although there remains strong disagreement over whether or not SB 442 should have been vetoed, it has become clear that this money could be used for more than just recreational purposes in Montana.

As the lawsuits brought forward by MACo and MWF continue to make their way through the court system, they have highlighted the potential implications of using cannabis tax revenue for other projects or programs in Montana.

This may serve as an important lesson for other states looking to maximize the use of their cannabis tax revenue. Whether or not this will be a successful endeavor is yet to be seen, but it’s inevitable that there will be plenty of debate over how best to use this money in the future.


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