Panel advances bill to require medical‑marijuana fund grants for clinical research despite DHS funding warning

The Senate Health and Human Services Committee advanced Senate Bill 12‑30, a bill that would require (rather than allow) the Department of Health Services to provide up to $5 million annually for five years from the Medical Marijuana Fund to support marijuana clinical trials and related grants through the Arizona Biomedical Research Center.

Proponents said the measure would secure predictable funding for clinical research into medical cannabis. AJ Jacobs testified he represents Arizona NORML and urged the committee to ensure the medical program funds research so patients and clinicians have evidence‑based guidance. John Lindstrom, representing veterans and first responders, said past legislation (HB 22‑98) intended to create an annual competitive grant process but that the use of “may” left funding subject to changing priorities.

Carly Flake, legislative liaison for DHS, told the committee DHS projections indicate that under the proposed formula the Medical Marijuana Fund would reach a deficit by fiscal year 3, noting earlier policy changes and declines in medical cardholders after adult‑use legalization. DHS said it had been able to make only one $5 million award under prior law and emphasized the fund’s decline from about 173,000 cardholders (2017) to roughly 63,000 in 2024; DHS estimated the fund balance entering FY2026 at about $20 million.

Scottsdale Research Institute and other proponents urged passage to continue conversations about funding levels and to direct DHS to prioritize clinical research. Committee members said they wanted the dialogue to continue; the committee gave SB 12‑30 a due‑pass recommendation (recorded 6 ayes, 0 no, 1 not voting).