Senate panel votes to send measure to voters after clash over agency fee authority

Arizona Senate Finance Committee · February 2, 2026

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Summary

The Senate Finance Committee approved SCR 1028, a constitutional referral limiting the Legislature's exemption from Prop 108's two‑thirds threshold for certain fees, after sharp exchanges between proponents who want to restrict delegated fee authority and opponents who said the change could impede agencies and public safety. The committee passed the resolution 4–3.

The Senate Finance Committee narrowly approved SCR 10‑28, a constitutional referral aimed at narrowing the Legislature's exemption from the two‑thirds vote threshold established by Proposition 108 (1992).

Sponsor testimony framed the measure as a way to prevent the Legislature from delegating broad fee‑setting authority to agencies and to ensure lawmakers, not state officers, set rates that affect state revenue. Joseph Palomino of the Arizona Center for Economic Progress testified in respectful opposition, arguing that the resolution would create an unnecessary problem, slow agency response, and could harm public safety and economic activity by requiring voter approval for fee adjustments that agencies now use to regulate services (examples cited: egg inspection, pesticide fees, water and environmental fees).

Senators exchanged pointed arguments. Senator Epstein said many fees already have statutory ceilings and are negotiated between agencies and businesses; others warned that sending the change to voters could give "the minority" veto power over fee increases. Epstein said the resolution represents "minority rule" because it could allow a minority to block fee changes the majority supports. Proponents argued the public likely intended limits on delegation when voters passed Proposition 108 in 1992.

After debate, the committee adopted a motion to return SCR 10‑28 with a do‑pass recommendation. The roll call produced a 4–3 committee vote in favor; senators provided recorded explanations for opposing votes during the session. The resolution will be placed on the legislative calendar for next steps toward referral to the ballot.

Transcript excerpts show stakeholders on both sides urged further stakeholder work, with proponents emphasizing legislative authority and opponents asking for targeted statutory fixes instead of a broad constitutional referral.