SB1299 restructures Arizona’s marijuana-related funding framework by creating a new “safe community enforcement fund” and redirecting a portion of money from the existing Smart and Safe Arizona Fund into that new account. Beginning in fiscal year 2025-2026 and continuing through fiscal year 2029-2030, the state treasurer must transfer $2.5 million twice each year into the new fund. The Department of Public Safety would administer the fund and use it for contracts or agreements with cities, towns, county sheriffs, county prosecutors, or the attorney general to enforce Arizona’s marijuana laws.
The bill also keeps the current Smart and Safe Arizona Fund distribution structure in place for the remaining revenues after required costs are paid, but it updates the allocation by carving out the new enforcement transfer first. The remaining funds would continue to be distributed to community colleges for workforce and STEM programs, local public safety agencies for personnel costs, the Arizona highway user revenue fund, the justice reinvestment fund, and the attorney general for enforcement-related purposes. The bill includes reporting requirements to the Joint Legislative Budget Committee, limits DPS administrative use of the new fund, and sunsets the new enforcement fund on December 31, 2030.
Impact
SB1299 amends Arizona Revised Statutes section 36-2856 and adds a new section 36-2856.01 in title 36, chapter 28.2, which governs responsible adult use of marijuana. It creates a new dedicated enforcement funding stream, changes how marijuana tax and fee revenues are allocated, and imposes new oversight and reporting obligations on the Department of Public Safety. The bill also requires a three-fourths vote of each legislative chamber to take effect, reflecting its impact on the voter-approved marijuana revenue structure.
Sentiment
The bill appears to have received mixed but ultimately advancing support, with several committee approvals and a narrow-to-moderate margin in floor votes. It passed the Senate 17-12 and the House 32-24, suggesting meaningful support but also significant opposition. The committee history shows some procedural complexity and repeated House action on amendments, indicating the measure was actively negotiated and not universally embraced.
Contention
The main point of contention is the redirection of marijuana fund revenues away from existing recipients and toward law enforcement enforcement contracts and administration. Supporters appear to favor dedicating money to public safety and enforcement of marijuana laws, while opponents likely object to reducing or re-prioritizing funds that otherwise support community colleges, highway funding, justice reinvestment, and local programs. The repeated House motions to reconsider and further amend the bill suggest disagreement over the final funding formula and enforcement structure, as well as over how much authority DPS should have over the new fund.