Big Cannabis Bills Set to Shake Up Arizona’s Legislature This Week! UPDATE WEEK 11

Arizona lawmakers will consider several bills in the Appropriations Committee on Monday, March 31, 2025. Among them is a proposed striker for SB1299, shifting its focus to the establishment of the Safe Community Enforcement Fund. Also up for discussion are SB1230, a research-focused bill, and SB1556, which addresses policies and procedures for adult hemp beverages and has a pending amendment.

The Power of a Striker Amendment: What Does it Mean?

A striker amendment (short for “strike everything amendment”) is a powerful tool lawmakers use to completely change a bill. Instead of making small edits, they erase all the original text and replace it with something entirely different—sometimes on a completely new topic. For example, a bill that started as a rule about roads could suddenly become a law about schools. The bill keeps its original number and title (at least for a while), but inside, it’s an entirely new law. It’s like taking a book, erasing all the pages, and writing a whole new story inside the same cover.

Lawmakers often use strikers to speed up the process or introduce urgent ideas without starting from scratch. However, critics argue that this tactic can make laws harder to track and limit public input since major changes can happen quickly and with little notice. While some lobbyists call it poor planning.
It looks like we have one or more cannabis strikers every year. This year, there are two, one proposed, and one is already adopted.

SB1057: A Last-Minute Chance for Marijuana Dual Licensees

On Tuesday, March 25th, the House Commerce Committee changed SB1057 from “Commerce; Trade; Passport Identification” to “Marijuana; Dual Licensees; Rural Communities.” That title might sound familiar because it did not pass in the Senate last week as SB1713. But now, it has another chance.

SB1299: Funding and Grants to Support Enforcement Efforts

The other proposed striker comes from a bill introduced last year. It is the exact same bill but with a different short title. Last year’s HB2452 (Marijuana Funds; Uses; Enforcement) is now this year’s proposed striker, SB1299 (Safe Community Enforcement Fund; Establishment).
This bill covers costs for the department to implement, manage, and enforce regulations. It also provides grants to groups like the Arizona Poison Control System to support operations and healthcare providers, the Attorney General to investigate and take action against illegal marijuana and cannabinoid sales, and local, county, and tribal law enforcement for similar enforcement efforts.

Last year, a fiscal note was attached to HB2452, sparking controversy. The concern was that shifting funds from the Smart and Safe Arizona Fund could impact community colleges, rural police, and firefighters. Usually, a negative fiscal note signals trouble for a bill.

The Smart and Safe Arizona Fund comes from a 16% excise tax on recreational marijuana sales and supports regulatory efforts. Any remaining money is distributed every six months to community colleges, police and fire departments, county sheriffs, the Highway User Revenue Fund, the Justice Reinvestment Fund, and the Attorney General.
The proposed bill would allow the Medical Marijuana Fund and the Smart and Safe Arizona Fund to be used interchangeably for marijuana regulation. It would also let DHS give grants to the Arizona Poison Control System, the Attorney General, and local law enforcement. These grants would take priority over the usual semiannual payments to other beneficiaries, meaning those groups could receive less funding if DHS chooses to award grants.

SB1556: Adult Hemp Beverages Set for a Crucial Vote

SB1556 Adult Hemp Beverages; Policies; Procedures is gearing up for a big showdown at Monday’s House Appropriations Committee! A fresh amendment pumps up the measure from 128 to 146 pages, courtesy of David Livingston (R-LD28). The latest changes crank up the regulations, hoping to spark less debate. A lot of eyes are on this bill as it moves — Monday morning might make or break it.

Clearing the Path for Marijuana Research

And the least controversial bill up on Monday is SB1230 – Marijuana; clinical research trials sponsored by Senator Payne (R-LD27) SB 1230, is designed to fix a problem with a law passed in 2021.The original bill allowed the Arizona Biomedical Research Center to give grants from the Medical Marijuana Fund for research approved by the FDA. These studies were meant to explore how safe and effective marijuana is and how it interacts with other drugs. The law required the research to be conducted by Arizona scientists at nonprofits or universities and approved by federal agencies. The focus was on treatments for autism, epilepsy, PTSD, and pain.
However, because the original bill used the word “may” instead of “shall,” the research grants were never required to be issued, and the program never got started. SB 1230, while a small and simple bill, is vital to ensuring this research program can finally move forward and benefit the cannabis movement in Arizona.

SB1230 also changed the amount from 5 million dollars to 2 million dollars for up to 5 years from the medical marijuana fund. This change is needed because the medical marijuana fund does not have the amount of money it used to. Dwindling patients since adult use passed, plus many other issues of pillaged the fund.

Governor Hobbs Signs First Cannabis Measure of 2025

Also this week we have the first cannabis measure signed by Governor Hobbs on Wednesday. SB1105- Medical Marijuana Dispensaries; Location, adds childcare facilities or facilities that provide preschool programs to the distance restrictions for the location of a marijuana dispensary.

At A Glance

Upcoming Hearings and Calendars
3/31/25 10:00 AM House APPROP, HHR 1

SB1230 Marijuana; clinical research trials
SB1299 Law enforcement personnel; grant program
STRIKER: safe community enforcement fund; establishment
SB1556 Adult hemp beverages; policies; procedures

Passed House Health Human Services
SB 1057 commerce; trade; passport identification
STRIKER: Marijuana; dual licensees; rural communities

No Movement
HB2179 Marijuana; advertising; restrictions

Signed By Governor
SB1105- Medical Marijuana Dispensaries; Location

Failed To Pass Senate
SB1713 Marijuana; dual licensees; rural communities

Details-Strikers

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

Status: Awaiting House Rules Committee

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

SB1229Smart and safe Arizona fund (was) law enforcement personnel; grant program

Status:House Rules Committee pending Appropriations vote

03/31/2025 Stiker proposed House Appropriations Committee

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

Regular Details

HB2179-Marijuana; Advertising; Restrictions

Status:Awaiting Caucus Pending Senate Rules committee

3/31/25 1:00 PM Senate RULES, Caucus Room 1

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)
HOUSE COW AMENDMENT
SENATE FACT SHEET: HHS
Proposed Amendments Senate Health and Human Services

SB1230- Marijuana; Clinical Research Trials

Status:Awaiting Rules pending Appropriations Committee

03/31/2025, 10:00 AM – House APPROP, HHR 1
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 – Y
02/18/2025 Senate Minority Caucus – Y
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
SENATE FACT SHEET: HHS-APPROP As Passed COW

SB1556: Adult hemp beverages; policies; procedures

Status: Awaiting House Rules Committee Pending Appropriations

03/27/2025 Hearing Scheduled – 03/31/2025, 10:00 AM – House APPROP, HHR 1
03/27/2025 W/D – House Commerce

03/19/2025 Removed from Hearing Agenda – 03/25/2025, 2:00 PM – House COM, HHR 5
03/19/2025 Hearing Scheduled – 03/25/2025, 2:00 PM – House COM, HHR 5
03/13/2025 House 2nd Read
03/12/2025 House 1st Read
03/12/2025 Referred to Committee – Rules – House Rules
03/12/2025 Referred to House Commerce Committee
03/12/2025 Referred to House Appropriations Committee
03/12/2025 – First Reading, House Floor
03/05/2025 Transmit to House
03/05/2025 PASSED Senate Third Reading (23-6-1)
03/04/2025 DPA – Senate Committee of the Whole
02/24/2025 Senate Minority Caucus
02/24/2025 Senate Majority Caucus
02/24/2025 Senate Consent Calendar – Object: Yes
02/24/2025 PFC – Senate Rules
02/13/2025 Due Pass (DP)Senate Regulatory Affairs and Government Efficiency
02/11/2025 Senate 2nd Read
02/10/2025 Senate 1st Read
02/10/2025 Referred to Senate Regulatory Affairs and Government Efficiency Committee
02/10/2025 Referred to Senate Rules Committee
02/03/2025 – Senate Introduced
Summary: Creates a new “adult hemp beverage” (defined) category and regulates it similarly to spirituous liquor. It defines adult hemp beverages as low-THC drinks derived from industrial hemp and authorizes current liquor licensees—producers, wholesalers, retailers, and delivery contractors—to add permissions for manufacturing, distributing, selling, or delivering these products without a separate hearing. Sets a gallon-based tax rate of $1.50 for adult hemp beverages, requires laboratory testing for total THC potency and contaminants, and specifies packaging, serving size, and labeling requirements, including quick-response codes linked to lab reports. Requires adult hemp beverage producers to obtain a manufacturer license or amend an existing producer or craft producer license; allows wholesalers, retailers, and delivery contractors to expand their existing permissions by filing a streamlined application. Includes a 90-day grace period for retailers and wholesalers to sell existing hemp beverage inventory, after which unapproved products are subject to seizure. Appropriates $1 million from the liquor licenses fund to the Department of Liquor Licenses and Control to administer the regulation. Requires all new testing labs to be approved and permitted, and existing department rules for spirituous liquor largely apply, unless deemed inapplicable.
Sections Affected
3-314 Amended
4-101 Amended
4-112 Amended
4-114 Amended
4-201 Amended
4-202 Amended
4-203 Amended
4-204 Amended
4-205.04 Amended
4-205.06 Amended
4-205.13 Amended
4-205.08 Amended
4-205 Amended
4-205.01 Amended
4-205.02 Amended
4-205.05 Amended
4-205.10 Amended
4-206.01 Amended
4-207.01 Amended
4-207.02 Amended
4-207.03 Amended
4-208 Amended
4-209 Amended
4-210 Amended
4-212 Amended
4-213 Amended
4-215 Amended
4-216 Added
4-222 Amended
4-223 Amended
4-224 Amended
4-225 Repealed
4-226 Amended
4-227 Amended
4-227.01 Amended
4-241 Amended
4-242 Amended
4-243.01 Amended
4-243.04 Amended
4-243 Amended
4-243.02 Amended
4-244.02 Amended
4-244 Amended
4-244.05 Amended
4-245 Added
4-250.01 Amended
4-251 Amended
4-301 Amended
4-302 Amended
4-311 Amended
4-312 Amended
36-136 Amended
42-3001 Amended
42-3051 Amended
42-3052 Amended
42-3351 Amended
42-3352 Amended
42-3354 Amended
42-3355 Amended
42-3357 Added
Sponsor: Sen. Thomas “T.J.” Shope (R)
VPA- Voter Protection Act (Prop 105): No
FOR MORE INFO
FISCAL NOTE: Senate Engrossed
SENATE FACT SHEET: RAGE As Passed COW Revised

Signed Into Law

SB1105- Medical Marijuana Dispensaries; Location

Status: Signed

03/25/2025 Governor Signed

03/19/2025 Transmit to Governor
03/18/2025 Passed House Third Reading
03/13/2025 DP – House Committee of the Whole
03/11/2025 House Majority & Minority Caucus
03/10/2025 C&P House Rules
03/10/2025 House Consent Calendar
03/03/2025 DP – House Health & Human Services (12-0-0)
02/27/2025 House 2nd Read
02/26/2025 House 1st Read
02/26/2025 Referred to House Rules Committee
02/26/2025 Referred House Health & Human Services Committee
02/25/2025 Hearing Scheduled – 03/03/2025, 2:00 PM – House HHS, HHR 4
02/20/2025 Transmit to House
02/20/2025 Passed Senate Third Reading (29-0-1)
02/20/2025 Due Pass as Amended (DPA) Senate Committee of the Whole
02/04/2025 Senate Majority Caucus
02/04/2025 Senate Minority Caucus
02/03/2025 Senate Consent
02/03/2025 PFC (Proper Form/ Constitutional) – Senate Rule
01/29/2025 Due Pass Senate Education (ED) (vote 6-0-1)
01/22/2025 Senate 2nd Read
01/16/2025 Senate 1st Read
01/16/2025 Senate Referred to Senate Education Committee
01/16/2025 Senate Referred to Senate Rules Committee
01/14/2025 Senate Introduced
Summary: Adds childcare facilities or facilities that provide preschool programs to the distance restrictions for the location of a medical marijuana dispensary. Requires an affirmative vote of at least three-fourths of the members of each House of the legislature.
Sections Affected
36-2804- Amended
Sponsor
Prime: Bolick
Co-Sponsor: Miranda
VPA- Voter Protection Act (Prop 105): Yes
Chaptered Version

Failed to Pass Seante (Dead)

SB1713 – Marijuana; dual licensees; rural communities

Status: Awaiting Reconsideration 3rd Read (again)
No Movement
03/13/2025 PASSED Senate Motion to Reconsider Third
03/13/2025 FAILED Senate Third Reading (18-9-3)
03/10/2025 DPA Senate Committee of the Whole
03/06/2025 RETAINED Senate Committee of the Whole
03/03/2025 RETAINED – Senate Committee of the Whole
02/26/2025 Senate Majority Caucus
02/24/2025 Senate Minority Caucus
02/24/2025 Senate Consent Calendar
02/24/2025 PFC – Senate Rules
02/18/2025 Due Pass (DP) Senate Natural Resources Committee
02/11/2025 Senate 2nd Read
02/10/2025 Senate 1st Read
02/10/2025 Referred to Senate Natural Resources Committee
02/10/2025 Referred to Senate Rules Committee
02/03/2025 Senate – Introduced
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.
Sections Affected
36-2854 Amended
36-2857.01 Added
Sponsor: Sen. David Gowan (R)
VPA- Voter Protection Act (Prop 105): Yes
SENATE FACT SHEET: 02/17/2025 NR

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