Today the Arizona House Federalism & Fiscal Responsibility Committee, will hold a hearing HB 2328 (compact; convention; balanced budget) which establishes the Arizona version of the Compact for America. The intent of the legislation is to originate a balanced budget amendment to the U.S. Constitution in every state enacting, adopting and agreeing to be bound by the compact.
The compact as stated in HB 2328:
1. Asserts the compact governs each member state with respect to their constitutions, superseding and repealing any conflicting or contrary law.
2. Clarifies that a member state agrees to perform and comply strictly in accordance with the terms and conditions of the compact.
Additionally, the compact contractually binds each member state upon the following:
• At least one other state has become a member state by enacting substantively identical legislation adopting and agreeing to be bound by the compact, and
• Notice of such state’s status is received by the compact administrator, or each member state’s chief executive officer.
3. Allows a member state to withdrawal from the compact when fewer than three-fourths of the several states are member states by enacting appropriate legislation and notification is given accordingly; however, once at least three-fourths of the several states are members, a state may only withdrawal by unanimous consent of the member states.
4. Specifies a withdrawal from the compact will not affect the validity or applicability with respect to the remaining member states, provided that at least two states remain member states.
Harold R. “CHIP” DeMoss, III, Managing Director, Tanglewood Capital Partners, LLC, and Nick Dranious, Director of the Center for Constitutional Government, Goldwater Institute will testify on the compact.
In an article written for the Goldwater Institute, Dranious wrote of the checks and balances of the compact, “Unlike the current national debt brinksmanship, the Compact for America Initiative is designed to force Washington to agree upon a budget that can command a wide national consensus long before the midnight hour arrives. The Compact for America would keep the nation’s credit rating from being held hostage to a game of chicken between the President and Congress. With the states serving as Congress’ fiscal control board, and the buck stopping at the President’s desk, the Compact for America Balanced Budget Amendment Initiative would powerfully check and balance Washington.
This initiative is just the sort of powerful, yet pragmatic reform that could only be originated outside of Washington, D.C. It’s time for the states and the people, led by their Governors, to seize the day.”