By Associated Press - Tuesday, December 20, 2016

PHOENIX (AP) - The Latest on a legal challenge to Arizona’s voter-approved minimum wage increase (all times local):

4:30 p.m.

An attorney representing Arizona business groups told a judge that the state will need $55 million to comply with a voter-mandated boost in the minimum wage in the coming six months. He called the increase “irreparable harm” requiring that the law be blocked from taking effect.

A lawyer for the state’s Medicaid agency also told Maricopa County Superior Court Judge Daniel Kiley Tuesday that it had no choice but to boost payments to providers to help them keep employees when the wage increase takes effect.

The Medicaid agency position contradicts the argument put forward by the Arizona Attorney General’s office that says any increased payments are discretionary and don’t invalidate Proposition 206.

The measure raises the minimum wage from $8.05 an hour to $10 on Jan. 1 and to $12 in 2020.

Judge Kiley heard arguments in the case Tuesday afternoon and promised a quick decision. The Arizona Chamber of Commerce and Industry says Proposition 206 is unconstitutional because it didn’t identify a funding source. Whatever sides loses is expected to appeal.

10:30 a.m.

Arizona’s Medicaid agency is siding with opponents of a voter-approved increase in the minimum wage by arguing in court papers that it is required to spend money because of Proposition 206.

The filing contradicts the position of the Attorney General’s office, which argues that the initiative approved in November mandates no new state spending and there’s nothing in the law that requires the state to increase wages to its contractors.

The measure raises the minimum wage from $8.05 an hour to $10 on Jan. 1 and to $12 in 2020. Arizona’s Medicaid program has decided to increase the rates it pays to nursing home and other providers on Jan. 1.

A judge is set to hear arguments in the case brought by the Arizona Chamber of Commerce and Industry Tuesday afternoon.

The Chamber argues the law saddles the state with new costs without identifying a funding source and claims Proposition 206 illegally added a second, unrelated issue, mandatory paid time off.

Attorney General Mark Brnovich’s office says in a court filing that there is no mandatory state spending triggered by the new law and the time off requirement is related to wages.

3 a.m.

A lawsuit challenging a new voter-approved law raising the minimum wage is set for a full court hearing

A Maricopa County Superior Court judge will hear three hours of arguments from challengers and backers of the law Tuesday afternoon.

The Arizona Chamber of Commerce and Industry is challenging the law. The Chamber argues it saddles the state with new costs without identifying a funding source and claims Proposition 206 illegally added a second, unrelated issue, mandatory paid time off.

Attorney General Mark Brnovich’s office says in a court filing that there is no mandatory state spending triggered by the new law and the time off requirement is related to wages.

The measure raises the minimum wage from $8.05 an hour to $10 on Jan. 1 and to $12 in 2020.

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