AZ SB1333

Prohibits cities and towns from reducing municipal police department budgets below the previous year's amount, with exceptions for financial hardship, health care/pension adjustments, or offsetting law enforcement expenditures.

Requires state treasurer to withhold state shared revenues equal to any budget reduction (less than 25%) or the entire prior year law enforcement budget (25% or more reduction) and deposit withheld funds into a new law enforcement support fund.

Establishes law enforcement support fund to provide grants to county sheriffs who hire officers displaced by city/town budget cuts and to support highway patrol operations.

If a city or town cuts law enforcement budget by more than 25%, the county sheriff may assume law enforcement functions, or if the sheriff declines, the state Department of Public Safety assumes those functions.

Authorizes county sheriffs and the Department of Public Safety to offer employment to peace officers whose positions were terminated due to municipal budget reductions.