On Wednesday, the Arizona Supreme Court upheld the constitutionality of Proposition 206, which increased the minimum wage from $8.05 $10 an hour and mandates workers’ sick pay.
The Attorney General’s Office defended Prop 206.
The chambers of commerce challenged the law, which was passed by voters in November, based on their claim that the law did not provide a source of revenue to cover the increase in costs incurred by the State of Arizona. They argued that without the source of revenue, Prop 206 violates the Revenue Source Rule.
The Attorney General argued that the Revenue Source Rule applies “only to initiatives and referendums that directly require expenditures and does not apply when such measures merely cause revenue expenditures or require state agencies to act.” The AG argued that “Prop 206 does not explicitly require a mandatory expenditure of state revenues and therefore complies with the Revenue Source Rule.”
Justice Ann Scott Timmer wrote for the unanimous court.