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Committee approves SCR 1009 with amendment to require two-thirds vote for revenue changes, including some fee cuts
Summary
SCR 1009 was advanced to the ballot by the Senate committee with an amendment from Senator Epstein that would extend the two-thirds vote requirement to some legislative acts that reduce state revenue as well as those that increase it.
The Senate Commerce & Finance Committee voted to send SCR 1009 to the ballot with an amendment that expands when a two-thirds legislative threshold applies to revenue changes.
As introduced, SCR 1009 would refer a constitutional change to voters to require a two-thirds vote for legislative acts that provide for a net increase in state revenues in the form of fees and assessments set by a state officer or agency when the amount is not prescribed by formula or limit. Committee testimony noted the measure ties into Proposition 108 (1992), which requires two-thirds for actions that increase state revenues.
Senator David Epstein offered an amendment to extend the two-thirds requirement to legislative acts that provide for a net decrease in state revenues as well. Epstein framed the change as a guardrail against carve-outs, tax credits and loopholes that over time make Arizona’s tax system more regressive. ‘‘Some tax credits serve a very good purpose... If a proposed tax credit is good, then it can get the two-thirds vote of support,’’ Epstein said during floor debate.
Joseph Palomino of the Arizona Center for Economic Progress raised concerns about the amendment’s broad scope and asked for private staff discussions to review the roughly 80 instances where agencies can set fees by statute, noting possible unintended consequences for areas such as water quality and public-health programs.
Committee members debated the scope and possible next steps; the sponsor said the measure is intended to focus on fees delegated to agencies rather than all tax policy. Committee members adopted the Epstein amendment; the final committee vote was 4–3 in favor of the referral with the amendment.
What happens next: If approved by the legislature and then by voters, the referral would change the state constitution to expand the two-thirds requirement to certain fee and assessment changes — and, with the adopted amendment, to some net revenue decreases. Opponents requested follow-up to map affected statutory fee authorities before any ballot question is finalized.
