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Arizona Chamber of Commerce & Industry v. Kiley

Supreme Court of Arizona

August 2, 2017

Arizona Chamber of Commerce & Industry, an Arizona non-profit corporation; the Greater Phoenix Chamber of Commerce, an Arizona non-profit corporation; the Tucson Hispanic Chamber of Commerce, an Arizona non-profit corporation; the Greater Flagstaff Chamber of Commerce, an Arizona non-profit corporation; and the Arizona Licensed Beverage Association, an Arizona non-profit organization; Arizona Restaurant Association, an Arizona non-profit corporation; the Yuma County Chamber of Commerce, an Arizona non-profit corporation; Marc Community Resources, Inc., an Arizona nonprofit corporation; the Arizona Free Enterprise Club, an Arizona non-profit organization; and ABRIO Family Services and Supports, Inc., an Arizona Corporation, Plaintiffs/Petitioners,
v.
Honorable Daniel J. Kiley, Judge of the Superior Court of the State of Arizona, in and for the County of Maricopa, Respondent Judge, State of Arizona; Industrial Commission of Arizona, a public entity; Arizona Health Care Cost Containment System, a public entity; Thomas J. Betlach, in his official capacity as Director of the Arizona Health Care Cost Containment System; Arizona Department of Administration, a public entity; Craig C. Brown, in his official capacity as the director of the arizona department of Administration, Defendants/Real Parties in Interest, and Arizonans for Fair Wages and Healthy Families Supporting Prop 206, Intervenor-Defendant/Real Party in Interest.

         Special Action from the Superior Court in Maricopa County The Honorable Daniel J. Kiley, Judge No. CV2016-018092

          Brett W. Johnson (argued), Sara J. Agne, Snell & Wilmer, L.L.P., Phoenix; Attorneys for Arizona Chamber of Commerce & Industry, the Greater Phoenix Chamber of Commerce, the Tucson Hispanic Chamber of Commerce, the Greater Flagstaff Chamber of Commerce, the Arizona Restaurant Association, the Yuma County Chamber of Commerce, Marc Community Resources, Inc., the Arizona Free Enterprise Club, and ABRIO Family Services and Supports, Inc.; Timothy A. La Sota, Timothy A. La Sota, PLC, Phoenix, Attorneys for Arizona Licensed Beverage Association

          Mark Brnovich, Arizona Attorney General, Dominic E. Draye, Solicitor General, Charles A. Grube (argued), Senior Agency Counsel, Phoenix, Attorneys for State of Arizona

          Stephen W. Tully, Hinshaw & Culbertson LLP, Phoenix, Attorneys for Industrial Commission of Arizona, Arizona Department of Administration, and Craig C. Brown

          Logan T. Johnston, Johnston Law Offices, P.L.C., Phoenix, Attorneys for Arizona Health Care Cost Containment System and Thomas J. Betlach

          Israel G. Torres, James E. Barton II (argued), Saman Golestan, Torres Law Group, PLLC, Tempe, Attorneys for Arizonans for Fair Wages and Healthy Families Supporting Prop 206

          William G. Montgomery, Maricopa County Attorney, Joseph I. Vigil, Joseph Branco, Deputy County Attorneys, Civil Services Division, Phoenix, Attorneys for Amicus Curiae Maricopa County

          Brian M. Bergin, Bergin, Frakes, Smalley & Oberholtzer, PLLC, Phoenix, Attorneys for Amici; Michael T. Liburdi, Kathryn Hackett King, General Counsel to Governor Douglas A. Ducey, Phoenix, Attorneys for Amicus Curiae Governor Douglas A. Ducey and Office of Strategic Planning & Budgeting; Josh Kredit, Arizona House of Representatives, Phoenix, Attorney for Amicus Curiae House Speaker J.D. Mesnard; and Greg Jernigan, Jeff Kros, Arizona State Senate, Phoenix, Attorneys for Amicus Curiae Senate President Steve Yarbrough

          Rhonda L. Barnes and Jay Tomkus, Arizona House of Representatives, Phoenix; and Lisette Flores, Arizona State Senate, Phoenix, Attorneys for Amici Curiae Senate Minority Leader Katie Hobbs and House Minority Leader Rebecca Rios

          Stanley Lubin, Lubin & Enoch, P.C., Phoenix, Attorneys for Amici Curiae National Employment Law Project and A Better Balance

          Jonathan Riches, Scharf-Norton Center for Constitutional Litigation at the Goldwater Institute, Phoenix, Attorneys for Amicus Curiae Goldwater Institute

          David Wells, Mesa, for Amicus Curiae David Wells, Ph.D., citizen resident of Arizona

          John R. Dacey, Christopher L. Hering, Gammage & Burnham, P.L.C., Phoenix, Attorneys for Amicus Curiae Arizona Association of Providers for Persons with Disabilities

          Jean-Jacques Cabou, Perkins Coie LLP, Phoenix, Attorneys for Amicus Curiae Living United For Change In Arizona

          JUSTICE TIMMER authored the opinion of the Court, in which CHIEF JUSTICE BALES, VICE CHIEF JUSTICE PELANDER, and JUSTICES BRUTINEL, BOLICK, GOULD, and LOPEZ joined.

          TIMMER JUSTICE

         ¶1 The Arizona electorate approved Proposition 206, "The Fair Wages and Healthy Families Act, " in the November 2016 election, thereby increasing the minimum wage and establishing earned paid sick leave. Petitioners ask us to declare that Proposition 206 violates the Arizona Constitution's Revenue Source Rule, Separate Amendment Rule, and Single Subject Rule. We decline to do so, holding instead that Proposition 206 does not violate these provisions.

         BACKGROUND

         ¶2 The Arizona Constitution, article 4, part 1, section 1(2), empowers qualified electors to propose by initiative laws for the voters' approval. Proposition 206 is one such initiative. Upon voter approval, Proposition 206 was codified as A.R.S. §§ 23-363 and 23-371 to -381. It increases Arizona's minimum wage incrementally over a three-year period and then requires annual increases tied to the consumer price index. A.R.S. § 23-363. It also requires employers to provide mandatory sick leave of one hour for every thirty hours worked. Id. ยงยง 23-372 to -373. The State of Arizona, the United States, and certain small businesses are exempt from Proposition 206's ...


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