Assigned to APPROP                                                                                                                      FOR COMMITTEE

 

                                                                                                                                                                                

 

 


 

 

ARIZONA STATE SENATE

Fifty-Third Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2226

 

compact; balanced budget; convention

 

Purpose

 

            Establishes the Compact for a Balanced Budget Amendment (Compact), calling for an Article V convention proposing the Balanced Budget Amendment for ratification (Convention).

 

Background

 

             Pursuant to Article V of the United States Constitution, two-thirds of the representatives in both houses of Congress or two-thirds of state legislatures may call a convention to amend the

Constitution. Article V further states that the amendment is ratified when approved by either three-fourths of state legislatures or conventions in three-fourths of the states.

 

There is no anticipated fiscal impact to the state General Fund associated with this legislation.     

 

Provisions

Balanced Budget Amendment

 

1.      Prohibits the total outlays of the United States government from exceeding total receipts.

 

2.      Prohibits outstanding debt from exceeding authorized debt.

 

3.      Establishes authorized debt as an amount equal to 105 percent of the outstanding debt on the effective date of the Balanced Budget Amendment.

 

4.      Prohibits debt from being increased above 105 percent of the outstanding debt unless such increase is first approved by the legislatures of the states.

 

5.      Allows Congress to authorize debt if it publically refers an unconditional, single subject measure proposing the amount of the increase to the legislatures of the states for approval.

 

6.      Stipulates if approval is not granted within 60 days after the submittal, the measure is deemed disapproved and the authorized debt remains unchanged.

 

7.      Requires the President to designate specific expenditures for impoundment when the outstanding debt exceeds 98 percent of the debt limit, effective 30 days thereafter, unless Congress designates an alternate impoundment of the same or greater amount by concurrent resolution, which is immediately effective.

 

8.      Specifies that the failure of the President to designate and enforce a required impoundment is an impeachable offense.

 

9.      Requires a bill that provides for a new or increased general revenue tax to receive a two-thirds majority vote in both houses of Congress, unless the bill provides for:

a)      a new end user sales tax which would completely replace every existing income tax levied by the United States government, or

b)      the reduction or elimination of an exemption, deduction or credit allowed under an existing general revenue tax.

 

10.  Stipulates the Balanced Budget Amendment is immediately operative upon ratification.

 

Compact membership and withdrawal

 

11.  States that the Compact governs each member state to the fullest extent permitted by their respective constitutions and supersedes, waives, repeals or otherwise amends and conforms all rules, policies or procedures any conflicting or contrary law.

 

12.  States that the Compact is contractually binding when:

a)      at least one other state has become a member state by adopting substantively identical legislation; and

b)      notice of such state's member state status is received by the compact administrator.

 

13.  Specifies legislation enacted by individual states is considered substantively identical if all provisions of the Compact are identical and operative on the same terms, with the following exceptions:

a)      any difference with specific regard to the enacting state's own method of appointing its member to the Compact Commission (Commission);

b)      any difference with specific regard to the enacting state's own obligation to fund the Commission;

c)      any difference with specific regard to the number and identity of each delegate appointed on behalf of the enacting state, provided that no more than three delegates may attend and participate in the Convention; or

d)      any difference with specific regard to the enacting state as to whether the call to Congress for a convention to propose a Balanced Budget Amendment survives termination of the compact.

 

14.  Permits any member state to withdraw from the Compact by enacting appropriate legislation and notifying the Compact Administrator if fewer than three-fourths of the states are member states.

 

15.  Requires unanimous consent of all member states to approve the withdrawal of a member state if at least three-fourths of states are member states.

 

Compact Commission and Compact Administrator

 

16.  Establishes the Commission, with the following powers and duties:

a)      to appoint and oversee a Compact Administrator;

b)      to encourage states to join the Compact and Congress to call the Convention in accordance with the Compact;

c)      to coordinate the performance of obligations under the Compact;

d)      to oversee the Convention's logistical operations;

e)      to oversee the defense and enforcement of the Compact in appropriate legal venues;

f)       to request and disburse funds to support the operations of the Commission, Compact Administrator and Convention;

g)      to adopt and publish corresponding bylaws and policies; and

h)      to cooperate with any entity that shares a common interest with the Commission and engages in policy research, public interest litigation or lobbying.

 

17.  Stipulates the Commission initially consists of three unpaid members but may be expanded to include representatives of additional member states and to allow for modest salaries and reimbursement of expenses if adequate funding exists.

 

18.  Permits each member state to appoint one member to the Commission.

 

19.  Requires positions on the Commission be assigned to appointees in the order in which their respective appointing states became member states.

 

20.  Stipulates each Commission member is entitled to one vote.

 

21.  Stipulates the Commission may not act unless a majority of appointed members are present.

 

22.  Stipulates no action is binding unless approved by a majority of the members.

 

23.  Requires the Commission to meet at least once a year.

 

24.  Requires the Commission to elect a chairperson, determine a primary place of doing business, and appoint a Compact Administrator.

 

25.  Establishes the position of Compact Administrator, with the following powers and duties:

a)      to timely notify the states of the date, time and location of the Convention;

b)      to organize and direct the logistical operations of the Convention;

c)      to maintain an accurate list of all member states and their appointed delegates; and

d)      to formulate, transmit and maintain all official notices, records and communications relating to the Compact.

 

26.  Stipulates the Compact Administrator serves at the pleasure of the Commission.

 

27.  Stipulates any notice sent by a member state to the Compact Administrator concerning the Compact is adequate notice to each other member state if a copy of the notice is delivered by the Compact Administrator to each other member state's chief executive officer.

28.  Requires the Compact Administrator to notify member states and issue a certified conforming copy of the chaptered version of the Compact as maintained in the statutes of each member state on the following occasions: 

a)      whenever any state becomes a member state;

b)      once at least three-fourths of the states are member states, with a statement declaring the legislatures of at least two-thirds of the states have applied for a convention for proposing amendments under Article V of the Constitution;

c)      once Congress has called the convention;

d)      once the date, time and location of the Convention have been determined;

e)      upon approval of the Balanced Budget Amendment by the Convention, with a statement requesting Congress refer the Balanced Budget Amendment for ratification by three-fourths of the legislatures of the states under Article V of the Constitution;

f)       when any article of the Compact prospectively ratifying the Balanced Budget Amendment is effective in any member state; and

g)      whenever any member state withdraws form the Compact.

 

29.  Requires the Commission, member states and Compact Administrator to cooperate with each other, give mutual assistance in the enforcement of the compact and give the chief law enforcement officer of each member state any information or documents reasonably necessary to facilitate the enforcement of the Compact.

 

30.  Stipulates the above provisions do not take effect until there are at least two member states.

 

Resolution applying for Convention

 

31.   Applies to Congress for the calling of a convention for proposing the Balanced Budget Amendment for ratification, pursuant to Article V of the Constitution.

 

32.  Petitions Congress to refer the Balanced Budget Amendment to the states for ratification by three-fourths of the state legislatures.

 

33.  Stipulates the application to Congress does not take effect until at least three-fourths of the states are member states.

 

Delegate appointment, limitations and instructions

 

34.  Appoints the Governor, Speaker of the House of Representatives and President of the Senate, or their designee, as delegates to the Convention with the following powers:

a)      to introduce, debate, vote on, propose and enforce Convention rules; and

b)      to introduce, debate, vote on and reject or propose the Balanced Budget Amendment for ratification.

 

35.  Allows delegates to receive reimbursement of reasonable expenses for attending the Convention.

 

36.  Prohibits delegates from introducing, debating, voting on, rejecting or proposing any constitutional amendment that is not the Balanced Budget Amendment.

37.  Stipulates every delegate from a member state forfeits their appointment if a delegate from their state violates any provision of the Compact.

 

38.  Allows a delegate to be recalled or replaced by the legislature of their state at any time for good cause.

 

39.  Requires delegates to take an oath affirming they will act in strict accordance with the terms and conditions of the Compact.

 

40.  States the term of a delegate is from appointment to the permanent adjournment of the Convention, unless shortened by recall, replacement or forfeiture.

 

41.  Requires delegates to take a temporary leave of absence from any other public office held while attending the Convention.

 

42.   Requires every delegate to the Convention to vacate the Convention and notify the Compact Administrator if the convention rules are not adopted.

 

Convention rules

 

43.  Requires the Convention to be organized, construed and conducted as a body exclusively representing and constituted by the states.

 

44.  Limits the agenda of the convention to introducing, debating, voting on, and rejecting or proposing the Balanced Budget Amendment for ratification.

 

45.  Allows states to be represented at the Convention through no more than three duly appointed delegates.

 

46.  Stipulates each state represented at the Convention has one vote, exercised by the majority vote of the state's delegates.

 

47.  Stipulates a majority of the states, present through a majority of their delegates, constitutes a quorum.

 

48.  Requires the Convention to act exclusively as a committee of the whole, chaired by a delegate representing the first state to become a member state.

 

49.  Permits the Convention to be temporarily suspended, relocated or rescheduled in the event the chairperson declares an emergency due to disorder or imminent threat to public health and safety.

 

50.  Requires the Convention to adopt provisions of the most recent editions of Robert's Rules of Order and the American Institute of Parliamentarians Standard Code of Parliamentary Procedure.

51.  Requires the chairperson to transmit certified copies of the proposed amendment to the Compact Administrator and all compact notice recipients upon Convention approval of the Balanced Budget Amendment.

 

52.  Requires all proceedings and records of the Convention to be open to the public upon request subject to reasonable regulations.

 

53.  Requires permanent adjournment of the Convention upon the earlier of 24 hours after commencing proceedings or completion of the business on the agenda.

 

Prohibition on ultra vires convention

 

54.  Prohibits member states from participating in the Convention unless:

a)      Congress first calls the Convention; and

b)      the convention rules of the Compact are adopted by the Convention as its first order of business.

 

55.  States any proposal or action of the Convention is void ab initio if the proposal or action:

a)      violates or was approved in violation of convention rules or delegate instructions;

b)      purports to propose a mode of ratification not specified in Article V of the Constitution; or

c)      purports to propose the formation of a new government.

 

56.  Prohibits member states from ratifying or approving any proposed amendment originating from the Convention other than the Balanced Budget Amendment.

 

Resolution prospectively ratifying the Balanced Budget Amendment

 

57.  Prospectively adopts and ratifies the Balanced Budget Amendment through the respective legislature of every member state.

 

58.  Stipulates the ratification does not take effect until Congress refers the Balanced Budget Amendment to the states for ratification.

 

Construction, enforcement, venue and severability

 

59.  Requires the Convention to be held in Dallas, Texas and commence proceedings at 9:00 AM Central Standard Time on the sixth Wednesday after the latter of the effective date of the Compact resolution calling for the Convention or the enactment date of the congressional resolution calling for the Convention.

 

60.  Establishes the exclusive venue for all actions arising under the Compact as the district court for the Northern District of Texas or the courts of the state of Texas.

 

61.  Permits the Commission to waive the jurisdictional requirement.

 

62.  Empowers the chief law enforcement officer of each member state to defend the Compact from legal challenges and to seek civil mandatory and prohibitory injunctive relief to enforce the Compact.

 

63.  States the Compact becomes effective on the latter of either the date of any event rendering the Compact effective according to its respective terms and conditions or the earlies date otherwise permitted by law.

 

64.  States the prohibitions on an ultra vires convention are non-severable prior to termination of the Compact.

 

65.  Severs any clause of the Compact found to be contrary to the Constitution, the state constitution of any member state or otherwise held invalid.

 

66.  Withdraws any member state from the Compact if the Compact is found to be entirely contrary to the state constitution.

 

67.  Construes the Compact as reciprocal legislation if the it is declared to be wholly or substantially in violation of Article I, Section 10 of the Constitution.

 

68.  Terminates the Compact: 

a)      when the Constitution is amended by the Balanced Budget Amendment; or

b)      on April 12, 2031, if the Balanced Budget Amendment is not ratified.

 

69.  Requires the Commission to dissolve and give notice of the dissolution within 90 days after the termination of the Compact.

 

Miscellaneous

 

70.  Contains a declaration of purpose and intent.

 

71.  Defines various terms.

 

72.  Stipulates the activities of the Commission and Compact Administrator must be funded exclusively by each member state as determined by their respective state law or by voluntary donations.

 

73.  Contains an emergency clause.

 

House Action

 

FPRPP            1/31/17     DP     6-3-0

3rd Read          2/9/17     DP     33-25-2

 

Prepared by Senate Research

February 27, 2017

RH/JN/rr