Arizona Legislature Update – Week 15: Key Marijuana Measures Progress, SB 1299 Falters

This week key measures advanced, including HB 2179 (Marijuana; advertising; restrictions) and SB 1230 (Marijuana; clinical research trials), both reaching the Committee of the Whole. Meanwhile, SB 1057 awaits the House minority caucus, and SB 1299, now focused on the Smart and Safe Arizona Fund, fails to move forward after missing the final Rules Committee.

Amendments to HB 2179 Adjusts Marijuana Advertising Restrictions to Support Small Businesses

The last time HB 2179 appeared it was in trouble in the Rules Committee. The committee, which usually debates constitutionality rather than policy, saw a rare protest from the Democratic minority on March 31, where they voted against the measure’s constitutionality. That move placed the measure in limbo and raised doubts about its future.

House Bill 2179 begins with strict rules for marijuana advertising. The original version limits ads to licensed dispensaries and recreational marijuana stores. It blocks any promotion of THC, marijuana paraphernalia, that might appeal to anyone under 21. It also allows just 7 days for businesses to correct violations and restricts advertising near schools, parks, and public transportation.

Adapting to Survive, a Senate Committee of the Whole (COW) Floor Amendment Breathed New life into the Measure.

The revised version takes a more balanced approach. Lawmakers expand the bill to include businesses that sell marijuana paraphernalia, not just licensed dispensaries. It removes the rule that limits advertising rights to licensed marijuana businesses. The bill now focuses only on marijuana and marijuana products, not all THC-related items.
While still aiming to protect youth, the bill now offers more clarity and flexibility for small businesses. HB 2179 shifts from a narrow, strict framework to one that better supports Arizona’s growing marijuana market.

The amended bill advanced through Senate COW on April 23 and now awaits Senate Third Read — where support from both parties signals a likely path to final passage.

SB1299: From Law Enforcement Grants to the Smart and Safe Arizona Fund, Never Hit Rules Committee

The short-lived bill debuted on March 31st in the House Appropriations Committee. And no, a “striker” isn’t a hair band from the ’80s. In legislative terms, a striker bill is an amendment that replaces the entire content of a bill with new language—often used to introduce major changes or completely new proposals during the session.

Though the bill came late in the game, the concept carried over from the 2024 session and had strong backing from the industry—not only in support but in authorship. Originally titled Law Enforcement Personnel; Grant Program, SB1299 was rewritten as Smart and Safe Arizona Fund; Disposition of Monies; Exemption. The new version proposed reallocating cannabis tax revenue from community improvement programs—like Hushabye Nursery, which helps opioid-dependent women and their infants, and Family and Community Acupuncture, which provides trauma-informed care in Northern Arizona including for the Havasupai Tribe—to increased enforcement against the illicit marijuana market.

Just as dispensary license holders are losing business to the unlicensed market, this bill also lost its footing. But it didn’t go out with a bang—it died a quiet, lingering death, failing to be heard in the Rules Committee before the session ended.

Still, we suspect SB1299 isn’t gone for good. Expect it to rise again next year… like a villain in a sequel.

Summary

HB2179-Marijuana; Advertising; Restrictions
Status:Awaiting Senate 3rd Read Tuesday 04/29/2025
Due Pass as Amended (DPA) – Senate Committee of the Whole
SB1230- Marijuana; Clinical Research Trial
Status:Awaiting House 3rd Read
04/22/2025 DPA – House Committee of the Whole
SB1057 Marijuana; dual licensees; rural communities
(was) Commerce; trade; passport identification
Status: Awaiting House Minority Caucus
No movement
SB1229 Smart and safe Arizona fund (was) law enforcement personnel; grant program
Status Failed to be heard in House Rules Committee
No Movement

Details

HB2179-Marijuana; Advertising; Restrictions

Status:Awaiting Senate 3rd Read Tuesday 04/29/2025

04/24/2025 Hearing Scheduled – 04/29/2025 – Third Reading, Senate Floor
04/23/2025 Due Pass as Amended (DPA) – Senate Committee of the Whole

04/01/2025 Senate Caucus
03/31/2025 Passed Senate Rules Committee (5-4)
03/19/2025 Due Pass Senate Health and Human Services (4-3-0)
02/26/2025 Senate 2nd Read
02/25/2025 Senate 1st Read
02/25/2025 Referred Health and Human Services Committee
02/25/2025 Senate Rules Committee
02/13/2025 Transmitted To Senate
02/13/2025 Due Pass House Third Read (vote 51-3-6)
02/10/2025 Due Pass as Amended House Committee of the Whole
02/04/2025 House Minority Caucus
02/04/2025 House Majority Caucus
02/03/2025 House Consent Calendar
02/03/2025 C&P (Constitutional & Proper)House Rules
01/21/2025 Due Pass House HHS Health & Human Services, (vote 12-0-0)
01/21/2025 House 2nd Read
01/16/2025 House House 1st Read
01/16/2025 House Referred to House (HHS) Health & Human Services Committee
01/16/2025 House Referred to House Rules Committee
01/14/2025 House Introduced

Summary
Restricts the marketing, promotion, sponsorship, advertisement, or advertising for Marijuana, products containing tetrahydrocannabinol, intoxicating cannabinoids, or marijuana paraphernalia to a licensed marijuana establishment or nonprofit medical marijuana dispensary. Defines advertising restrictions on a marijuana establishment or nonprofit medical marijuana dispensary and provides text that must be included in all advertising. Defines restrictions on billboard advertising and outlines the process and penalties for noncompliance including timelines, deadlines and possible penalties. Stipulates that for the purposes of this legislation advertising does not include communication targeted to an established customer base. Effective date is July 1, 2026
Sections Affected
36-2859- Amended
Sponsor
Prime: Bliss

VPA- Voter Protection Act (Prop 105): Yes
FOR MORE INFO (House Engrossed Version)

SB1057 – Marijuana; dual licensees; rural communities (was) Commerce; trade; passport identification

Status: Awaiting House Minority Caucus

No movement
04/17/2025 House Majority Caucus
04/14/2025 C&P House Rules
03/25/2025 House DPA/SE Commerce
03/25/2025 Marijuana; dual licensees; rural communities
02/19/2025 commerce; trade; passport identification
02/11/2025 Fiscal Note Added
01/10/2025 Senate Introduced as working animal; harm; classification

Summary: Requires the Arizona Department of Health Services (ADHS) to issue rules pertaining to marijuana establishment licenses and nonprofit marijuana dispensary registration certificates. Defines the criteria needing to be included in determining eligibility for a license or certificate. Defines the purposes and scope of the licenses. Requires the ADHS to issue rules that allow the establishment of a Rural Opportunity Initiative to create tax revenue and economic opportunities for rural communities. Outlines deadlines for adopting and posting rules, accepting, processing and granting applications. Defines the criteria for eligibility for a license or certificate, including duel licenses or certificates. Requires at least three-fourths of the members of the legislature to support this legislation for it to become effective.
Sponsor: Sen. David Gowan
VPA- Voter Protection Act (Prop 105): Yes

MORE INFO

SB1230- Marijuana; Clinical Research Trial

Status:Awaiting House 3rd Read

04/22/2025 DPA – House Committee of the Whole
04/16/2025 House Majority Caucus
04/16/2025 House Minority Caucus
04/14/2025 C&P House Rules
03/31/2025 Passed House Appropriations Committee (10-8-0)
03/24/2025 DPA House Health & Human Services (7-4-1)
03/13/2025 House 2nd Read
03/12/2025 House 1st Read
03/12/2025 Referred to House Health & Human Services Committee
03/12/2025 Referred to House Appropriations Committee
03/12/2025 Referred to House Rules
03/05/2025 Transmit to House
03/05/2025 PASSED Senate Third Reading (23-6-1)
03/03/2025 DPA Senate Committee of the Whole
02/18/2025 Senate Majority Caucus
02/18/2025 Senate Minority Caucus
02/17/2025 Senate Consent Calendar Object: Yes
02/17/2025 PFC – Senate Rules
02/11/2025 DP (Due Pass) Senate Appropriations (7-3-0)
02/05/2025 DP (Due Pass) Senate Health and Human Services (6-0-1)
01/28/2025 Senate 2nd Read
01/27/2025 Senate 1st Read
01/27/2025 Referred to Senate Rules Committee
01/27/2025 Referred to Senate Appropriations Committee
01/27/2025 Referred to Senate Health and Human Services Committee
01/22/2025 Senate Introduced

Summary
Requires monies in the Medical Marijuana Fund to be used to provide grants for marijuana clinical trials conducted pursuant to state law, versus it being an option to use those funds in that manner. Stipulates that this legislation becomes effective only on the affirmative vote of at least three fourths of the members of each House of the legislature.
Sections Affected
36-2817- Amended
36-2822- Amended
Sponsor
Prime: Payne
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO
HOUSE FACT SHEET AS PSSED BY APPROPRIATIONS

SB1229 Smart and safe Arizona fund (was) law enforcement personnel; grant program

Status Failed to be heard in House Rules Committee

No Movement
03/31/2025 DPAHouse Appropriations Committee (11-6-0-1)
01/27/2025 Senate Introduced As law enforcement personnel; grant program
Summary: Permits monies in the Medical Marijuana Fund or the Smart and Safe Arizona Fund to be used interchangeably to implement this bill. Adds grants for the Arizona Poison Control System for operations and to support health care providers and providing public health and safety education related to, the Attorney General to investigate and enforce actions pertaining to, and municipal police departments, county sheriff departments, and tribal police agencies to investigate and take action against, the illicit sale of marijuana and intoxicating cannabinoids to required expenditures by the State Treasurer from the Smart and Safe Arizona fund are spent. Authorizes the Attorney General to use monies from either fund to investigate and take enforcement action related to the illicit sale, marketing, and distribution of marijuana and illicit cannabinoids.
Sections Affected:
36-2817 Amended
36-2856 Amended
Sponsor:Kavanagh
Striker Sponsor: Livingston
VPA- Voter Protection Act (Prop 105): Yes
MORE INFO

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