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SB1542 • 2026

controlled substances; approval; use; research

SB1542 - controlled substances; approval; use; research

Budget Healthcare Labor
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Kevin Payne
Last action
2026-02-03
Official status
Senate second read
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on who can receive MDMA treatment beyond firefighters and peace officers.

MDMA for PTSD Treatment and Research

This bill allows MDMA to be prescribed for treating PTSD in first responders if approved by FDA and rescheduled by DEA. It also funds research on using MDMA to treat PTSD.

What This Bill Does

  • Allows MDMA, a drug that can help with PTSD treatment, to be prescribed if the U.S. Food and Drug Administration (FDA) approves it and the Drug Enforcement Administration (DEA) changes its classification.
  • Requires employers to cover workers' compensation for firefighters and peace officers diagnosed with PTSD who need MDMA treatment.
  • Funds $10 million from the state budget in 2027 for research on using MDMA to treat PTSD, especially for first responders and veterans.

Who It Names or Affects

  • Firefighters and peace officers diagnosed with PTSD who need MDMA treatment.
  • Employers of firefighters and peace officers.
  • The Department of Health Services (DHS) which will fund research on MDMA for PTSD treatment.

Terms To Know

MDMA
A drug that can help treat post-traumatic stress disorder (PTSD) when used with therapy sessions.
FDA
The U.S. Food and Drug Administration, which approves medications for use in the United States.
DEA
The Drug Enforcement Administration, which classifies drugs into different schedules based on their potential for abuse and medical use.

Limits and Unknowns

  • The bill only takes effect if FDA approves MDMA for PTSD treatment by January 1, 2029.
  • It is not clear how much the MDMA treatments will cost or what impact it might have on workers' compensation costs.

Bill History

  1. 2026-02-03 Senate

    Senate second read

  2. 2026-02-02 Senate

    Senate Rules: None

  3. 2026-02-02 Senate

    Senate Public Safety: DP

  4. 2026-02-02 Senate

    Senate Appropriations, Transportation and Technology: None

  5. 2026-02-02 Senate

    Senate first read

Official Summary Text

SB1542 - 572R - Senate Fact Sheet

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ARIZONA STATE SENATE

Fifty-Seventh
Legislature, Second Regular Session

FACT SHEET FOR
s.b. 1542

controlled
substances; approval; use; research

Purpose

Allows
3,4-methylenedioxymethamphetamine (MDMA) that is approved by the U.S. Food and
Drug Administration (FDA) and rescheduled to a schedule other than Schedule I
to be prescribed and authorizes workers' compensation coverage to include MDMA
treatment for outlined first responders diagnosed with post traumatic stress
disorder (PTSD). Appropriates $10,000,000 from the state General Fund (state
GF) in FY 2027 to the Department of Health Services (DHS) to award grants for
trials or other research relating to MDMA as a treatment for PTSD. Prescribes
conditions for enactment, treatment stipulations and reporting requirements.

Background

In 2024, an
application was filed with the FDA for the approval of MDMA, also known as
midomafetamine, for the treatment of PTSD in adults (
FDA
). MDMA is a synthetic
drug that alters mood and perception and is chemically similar to both
stimulants and hallucinogens. MDMA increases the activity of dopamine,
nonrepinephrine and serotonin in the brain and its effects last about three to
six hours. MDMA is currently in clinical trials as a possible treatment aid for
PTSD, anxiety in terminally ill patients and for social anxiety in autistic
adults (
National
Institute on Drug Abuse
). The FDA has designated MDMA-assisted
psychotherapy for PTSD as a breakthrough therapy drug, which are intended to
treat a serious or life-threatening disease or condition and means that
preliminary clinical evidence indicates that the drug may demonstrate
substantial improvement over existing therapies on one or more clinically
significant endpoints (
FDA
).

Drugs,
substances and certain chemicals used to make drugs are classified by the U.S.
Drug Enforcement Administration (DEA) into five categories or schedules
depending upon the drug's acceptable medical use and abuse or dependency
potential.
Schedule I drugs, substances or chemicals
are defined as
drugs with no currently accepted medical use and a high potential for abuse (
DEA
).

The Industrial
Commission of Arizona (ICA) administers workers' compensation laws and
adjudicates workers' compensation claims. An injured employee, or a dependent
of a deceased employee, is entitled to receive workers' compensation for an
accident arising out of and in the course of employment (
A.R.S.
� 23-921
).

PTSD
is a
mental health condition that is triggered by either experiencing or witnessing
a terrifying event. Symptoms may start within one month of a traumatic event
but may not appear until years later and can cause significant problems in
social and work situations as well as in relationships. Symptoms may include
flashbacks, nightmares, severe anxiety and uncontrollable thoughts about the
event (
Mayo
Clinic
).

S.B. 1542
appropriates $10,000,000 from the state GF in FY 2027 to DHS. If requiring
MDMA-assisted therapy for firefighters and peace officers increases workers'
compensation coverage costs, there may be further fiscal impact to the state GF.

Provisions

Rescheduling

1.

Deems that any compound, mixture or preparation that contains MDMA and
that is approved by the FDA and rescheduled by the DEA to a schedule other than
Schedule I is a controlled substance and may be prescribed in Arizona.

MDMA Treatment
for Firefighters and Peace Officers

2.

Requires employers to provide workers' compensation coverage to
firefighters and certified peace officers who have been diagnosed with PTSD by
a licensed mental health professional and who have accepted a workers'
compensation claim for PTSD.

3.

Allows workers' compensation coverage to include one complete course of
a treatment protocol of MDMA as prescribed by a psychiatrist if an independent
medical examination reveals that the treatment is deemed reasonable and
necessary and follows treatment guidelines established by the ICA.

4.

Requires a prescribed MDMA treatment to meet statutory requirements for
a controlled substance.

5.

Requires, by January 1, 2029, and each January 1 thereafter, the ICA to
submit a report to the Joint Legislative Budget Committee of the costs of MDMA
treatment for firefighters and certified peace officers.

6.

Conditions the enactment of legislation authorizing MDMA treatment for
firefighters and certified peace officers on the FDA approving the use of MDMA
to treat PTSD by January 1, 2029.

7.

Requires, by February 1, 2029, the Executive Director of the Arizona
State Board of Pharmacy (Board of Pharmacy) to notify the Directors of the
Arizona Legislative Council (Leg Council) and the ICA in writing of the date on
which the condition was met or that the condition was not met.

8.

Directs the ICA, on notification from the Board of Pharmacy that the
condition has been met, to assign reimbursement values in its schedule of fees
and publish guidelines on billing and reimbursement practices for MDMA.

Appropriation and
Grants

9.

Appropriates $10,000,000 from the state GF in FY 2027 to DHS to award
grants for clinical trials, applied clinical research and training of
clinicians in the use of MDMA to treat PTSD and specifically the safe
administration of MDMA to first responders and veterans who are affected by
PTSD.

10.

Allows DHS to award grants
for eligible projects to one or more of the following entities:

a)

a sponsor of record or principal investigator that has completed at
least one related, late-stage clinical trial and is currently participating in
an FDA drug review process relating to the use of MDMA to treat PTSD;

b)

a public institution of higher education in Arizona that:

i.

delivers clinical care in the field of mental health or substance use
disorders;

ii.

provides
accredited professional education or clinical training programs in behavioral
health disciplines; or

iii.

conducts
clinical, translational or implementation research related to mental health or
substance use disorder treatment; or

c)

a
qualified public institution of higher education that serves as the lead
institution on behalf of a collaborative partnership or formal consortium,
which includes the sponsor of record, that is formed for the purpose of
carrying out an eligible project.

11.

Requires
each grant application to identify a sponsor of record that will be responsible
for regulatory compliance, product supply and safety oversight for the eligible
project.

12.

Allows
the sponsor of record for a qualified institution of higher education to serve
as the lead applicant, a co-applicant or a subrecipient.

13.

Allows
a qualified institution of higher education to serve as the lead applicant and
the sponsor of record to be a co-applicant or subrecipient.

14.

Requires each eligible
project to support at least one of the following objectives:

a)

applied clinical research and clinical trials by conducting
practice-oriented research to evaluate and improve models of care, treatment
protocols or patient outcomes for the administration of MDMA to residents of
Arizona, specifically veterans and first responders, who are impacted by PTSD; or

b)

clinical
training through the design and delivery of evidence-based training programs to
prepare health care providers in Arizona to safely and effectively administer
MDMA to treat PTSD, including veterans and first responders.

15.

Requires the application for
any eligible project involving the administration of MDMA or reliance on prior
clinical data to include documentation, which must be issued by the sponsor of
record, of:

a)

product supply sufficient to complete the project; and

b)

a
right of reference or other regulatory authorization, as applicable, to rely on
FDA submissions relating to MDMA.

16.

Exempts
the appropriation from lapsing.

17.

Conditions enactment of the
appropriation on the following occurring by January 1, 2027:

a)

the approval of an MDMA investigational product as a prescription
medication;

b)

the control of an MDMA investigational product under a federal interim
final rule; and

c)

the publication
of an MDMA investigational product in the Federal Register.

18.

Requires,
by February 1, 2027, the Executive Director of the Board of Pharmacy to notify
the Director of Legislative Council in writing of the date on which the
conditional enactment was met or that the conditional enactment was not met.

Miscellaneous

19.

Specifies
that MDMA is included by the official, common, usual, chemical or trade name
designated.

20.

Conditions enactment on the
legislation relating to MDMA nomenclature on the following occurring by January
1, 2029:

a)

the approval of an MDMA investigational product as a prescription
medication;

b)

the control of an MDMA investigational product under a federal interim
final rule;

c)

the publication of an MDMA investigational product in the Federal
Register; and

d)

for
outlined portions, the enactment of the legislation authorizing MDMA treatment
for firefighters and peace officers.

21.

Requires,
by February 1, 2029, the Executive Director of the Board of Pharmacy to notify
the Director of Leg Council in writing of the date on which the conditional
enactment was met or that the conditional enactment was not met.

22.

Defines

treatment protocol of MDMA
as a process of treatment that has received
FDA approval for PTSD and that uses MDMA in conjunction with therapy sessions.

23.

Defines
terms.

24.

Makes
conforming changes.

25.

Becomes
effective on the general effective date or later, subject to the provisions of
the conditional enactments.

Prepared by Senate Research

February 16, 2026

KJA/SDR/hk

Current Bill Text

Read the full stored bill text
SB1542 - 572R - I Ver

REFERENCE TITLE:
controlled substances; approval; use; research

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1542

Introduced by

Senator
Payne

AN
ACT

Amending title 23, chapter 6, article 4,
Arizona Revised Statutes, by adding section 23-973; amending section 36-2511,
Arizona Revised Statutes, as amended by laws 2021, chapter 61, section 12;
amending section 36-2511, Arizona Revised Statutes, as amended by Laws
2025, chapter 231, section 1; amending title 36, chapter 27, article 2, Arizona
Revised Statutes, by adding section 36-2517.03; appropriating monies;
relating to controlled substances.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 23, chapter 6, article 4,
Arizona Revised Statutes, is amended by adding section 23-973, to read:

START_STATUTE
23-973.

Coverage; midomafetamine; firefighters; peace officers; post-traumatic
stress disorder; annual report; definitions

A. Employers shall provide workers'
compensation coverage to firefighters and certified peace officers who have
been diagnosed with post-traumatic stress disorder by a licensed mental
health professional and who have an accepted workers' compensation claim for
post-traumatic stress disorder under this title.� If an independent
medical examination reveals that a treatment protocol of Midomafetamine is
deemed a reasonable and necessary treatment and follows the treatment
guidelines established by the commission, workers' compensation coverage may
include one complete course of a treatment protocol of Midomafetamine as
prescribed by a psychiatrist.

B. Midomafetamine prescribed under
this section must meet the requirements under title 36, chapter 27 for a
controlled substance.

C. On or before January 1, 2029 and
each January 1 thereafter, the commission shall submit to the joint legislative
budget committee a report of the costs of treatment for Midomafetamine under
this section for firefighters and certified peace officers.

D. For the purposes of this section:

1. "Certified peace
officer" has the same meaning prescribed in section 38-842.

2. "Firefighter" means a
professional firefighter who is a member of a city, town, county or fire
district fire department.

3. "Licensed mental health
professional" means an individual who specializes in trauma and crisis,
who uses evidence-based treatment options and who is licensed as either:

(
a
) A
psychiatrist pursuant to title 32, chapter 13 or 17.

(
b
) A
psychologist pursuant to title 32, chapter 19.1.

4. "Treatment protocol of
Midomafetamine" means a process of treatment that has received approval
from the United States Food and Drug

Administration for post-traumatic stress disorder and that uses
Midomafetamine in conjunction with therapy sessions.
END_STATUTE

Sec. 2. Section 36-2511, Arizona Revised
Statutes, as amended by Laws 2021, chapter 61, section 12, is amended to read:

START_STATUTE
36-2511.

Nomenclature

The controlled substances listed or to be listed in the
schedules in sections 36-2512, 36-2513, 36-2514, 36-2515,
36-2516
,

and
36-2517
and 36-2517.03
or the rules adopted pursuant to this
article are included by whatever official, common, usual, chemical or trade
name designated.
END_STATUTE

Sec. 3. Section 36-2511, Arizona Revised Statutes, as amended by Laws 2025, chapter 231, section
1, is amended to read:

START_STATUTE
36-2511.

Nomenclature

The controlled substances listed or to be listed in the
schedules in sections 36-2512, 36-2513, 36-2514, 36-2515,
36-2516, 36-2517
,

and
36-2517.02

�and 36-2517.03
or the rules adopted pursuant to
this article are included by whatever official, common, usual, chemical or
trade name designated.
END_STATUTE

Sec. 4. Title 36, chapter 27, article 2,
Arizona Revised Statutes, is amended by adding section 36-2517.03, to read:

START_STATUTE
36-2517.03.

United States food and drug administration; approved medication;
rescheduling

Any compound, mixture or preparation that
contains 3, 4-methylenedioxymethamphetamine and that is approved by the
United States food and drug administration and rescheduled by the United States
drug enforcement administration to a schedule other than schedule I of the
controlled substances act (P.L. 91-513; 84 Stat. 1242; 21 United States
Code sections 801 through 904) is a controlled substance for the purposes of
this chapter and may be prescribed in this state.

END_STATUTE

Sec. 5.
Appropriation;
department of health services; treatment of post-traumatic stress
disorder; midomafetamine; exemption

A. The sum of $10,000,000
is appropriated from the state general fund in fiscal year 2026-2027 to
the department of health services to award grants pursuant to title 41, chapter
24, Arizona Revised Statutes, for clinical trials, applied clinical research
and training of clinicians� in the use of midomafetamine to treat post-traumatic
stress disorder and specifically the safe administration of midomafetamine to
first responders and veterans who are affected by post-traumatic stress
disorder.

B. The department may award
grants for eligible projects to one or more of the following entities:

1. A sponsor of record or
principal investigator that:

(a) Has completed at least
one late-stage clinical trial relating to the use of midomafetamine to
treat post-traumatic stress disorder.

(b) Is currently
participating in a United States food and drug administration drug review
process relating to the use of midomafetamine to treat post-traumatic
stress disorder.

2. A public institution of
higher education in this state that meets one of the following:

(a) Delivers clinical care
in the field of mental health or substance use disorders.

(b) Provides accredited
professional educational or clinical training programs in behavioral health
disciplines.

(c) Conducts clinical,
translational or implementation research related to mental health or substance
use disorder treatment.

3. A public institution of
higher education in this state described in paragraph 2 of this subsection that
serves as the lead institution on behalf of a collaborative partnership or
formal consortium formed for the purpose of carrying out an eligible project
pursuant to subsection E of this section.� The partnership or consortium shall
include the sponsor of record.

C. Each application for a
grant under this section must identify a sponsor of record that will be
responsible for regulatory compliance, product supply and safety oversight for
the eligible project.

D. The sponsor of record
described in subsection B, paragraph 1 of this section may serve as the lead
applicant, a co-applicant or a subrecipient.� An entity described in
subsection B, paragraph 2 of this section may serve as the lead applicant, and
the sponsor of record may be a co-applicant or subrecipient.

E. Each eligible project
must support at least one of the following objectives:

1. Applied clinical
research and clinical trials by conducting practice-oriented research to
evaluate and improve models of care, treatment protocols or patient outcomes
for the administration of midomafetamine to residents of this state who are
impacted by post-traumatic stress disorder, specifically veterans and
first responders who are impacted by post-traumatic stress disorder.

2. Clinical training
through the design and delivery of evidence-based training programs to
prepare health care providers in this state to safely and effectively
administer midomafetamine to treat post-traumatic stress disorder,
including veterans and first responders.

F. For any eligible project
involving the administration of midomafetamine or reliance on prior clinical
data, the application shall include documentation, which must be issued by the
sponsor of record, of both:

1. Product supply
sufficient to complete the project.

2. A right of reference or
other regulatory authorization, as applicable, to rely on United States food
and drug administration submissions relating to midomafetamine.

G. The appropriation made
in subsection A of this section is exempt from the provisions of section
35-190, Arizona Revised Statutes, relating to lapsing of appropriations.

Sec. 6.
Conditional enactment; notice; industrial
commission duties

A. Section 23-973,
Arizona Revised Statutes, as added by this act, does not become effective
unless on or before January 1, 2029 the United States food and drug
administration approves the use of midomafetamine to treat post-traumatic
stress disorder.

B. The executive director
of the Arizona state board of pharmacy shall notify the director of the Arizona
legislative council and the director of the industrial commission of Arizona in
writing on or before February 1, 2029 either:

1. Of the date on which the
condition was met.

2. That the condition was
not met.

C. On notification from the
Arizona state board of pharmacy that the condition has been met, the industrial
commission of Arizona shall assign reimbursement values in its schedule of fees
and publish guidelines on billing and reimbursement practices for
midomafetamine.

Sec. 7.
Conditional
enactments; notice

A. Section 36-2511, Arizona
Revised Statutes, as amended by Laws 2021, chapter 61, section 12 and this act,
and section 36-2517.03, Arizona Revised Statutes, as added by this act, do not
become effective unless on or before January 1, 2029 a 3, 4-methylenedioxymethamphetamine
investigational product is newly approved as a prescription medication pursuant
to 21 United States Code section 355 and is controlled under a federal interim
final rule issued pursuant to 21 United States Code section 811(j) and published
in the Federal Register.

B. Section 36-2511, Arizona
Revised Statutes, as amended by Laws 2025, chapter 231, section 1 and this act,
does not become effective unless both the condition prescribed by Laws 2025,
chapter 231, section 5, subsection A is met and on or before January 1, 2029 a
3, 4-methylenedioxymethamphetamine investigational product is newly
approved as a prescription medication pursuant to 21 United States Code section
355 and is controlled under a federal interim final rule issued pursuant to 21
United States Code section 811(j) and published in the Federal Register.

C. The executive director
of the Arizona state board of pharmacy shall notify in writing the director of
the Arizona legislative council on or before February 1, 2029 either:

1. Of the date on which the
condition was met.

2. That the condition was
not met.

Sec. 8.
Conditional enactment; notice

A. Section
5 this act does not become effective unless on or before January 1, 2027 a
midomafetamine investigational product is approved as a prescription medication
pursuant to 21 United States Code section 355 and is controlled under a federal
interim final rule issued pursuant to 21 United States Code section 811(j) and
published in the Federal Register.

B. The executive director
of the Arizona state board of pharmacy shall notify the director of the Arizona
legislative council in writing on or before February 1, 2027 either:

1. Of the date on which the
condition was met.

2. That the condition was
not met.