They Can Sweep
The State of Arizona Wins Court Case on Funds Sweeps
By Joe Sigg, Arizona Farm Bureau
The interests of Arizona agriculture were dealt a setback by the Court of Appeals for the State of Arizona. Originally the Farm Bureau, the Wheat Growers, Yuma Fresh Vegetable Association, Western Growers, along with the Arizona Grain Research Council filed suit in 2008 opposing funds sweeps from the grain, citrus and iceberg lettuce council.
These groups won in Superior Court but that decision was overturned when the State of Arizona appealed the case. The lower court judge ruled the legislature could change the purpose and then sweep funds, if they changed the statutes.
It all seemed quite reasonable.
The Court of Appeals said “no” – the legislature was not restricted (apparently by its own statutes) as long as its actions do not violate the Constitution.
Further the court said these funds were neither held in trust nor custodial and there was no violation of due process because there was no property interest in these funds.
Lastly the court rejected the argument that the sweeping of these funds constituted a new tax obligation on selected classes of people – the court said these funds were not taxes.
It was a sweeping decision and I think we can safely conclude that no one’s life, liberty or funds are secure when the legislature is in session. This court decision creates even more opportunities for funds sweeps by the legislature.
It all seems quite unreasonable…and we are appealing to the Arizona Supreme Court.
