The Arizona Court of Appeals ruled that a state law, passed as HB 2579 in 2016, violated the Voter Protection Act, Arizona’s restriction on legislative alteration. The Voter Protection Act requires voter approval of substantive changes made by the legislature to ballot initiatives. HB 2579 was designed to preempt local governments from requiring nonwage benefits above the state requirement. The three-judge panel concluded that HB 2579 contradicted Proposition 202, which voters approved in 2006. Proposition 202 increased the minimum wage and provided that local governments can enact ordinances to regulate the minimum wage and benefits.

HB 2579 defined benefits to include fringe benefits, sick and vacation days, retirement plans, child or adult care plans, and welfare benefits. Proposition 202 did not define benefits.

The appeals court’s ruling said, “H.B. 2579 explicitly prohibits what the Minimum Wage Act permits, and thus, the two statutes cannot be harmonized. Because H.B. 2579 impliedly amends and repeals a portion of the Minimum Wage Act, it violates the VPA’s express limitations on legislative changes to voter-approved laws.”

The state government, represented by Attorney General Mark Brnovich (R), has the option of appealing the case to the Arizona Supreme Court, which would have final jurisdiction on the issue. If the state does not appeal the case, or the state Supreme Court sides with the appeals court, the Arizona State Legislature could pass the same bill to preempt local benefits ordinances; however, an additional provision referring the bill to the ballot for voter consideration would need to be added to meet the requirements of the Voter Protection Act.

Due to the Voter Protection Act, which was passed as a ballot initiative in 1998, Arizona is one of two states—the other is California—that requires voter approval to make substantive changes to voter-approved ballot initiatives.