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Backers of an effort to let voters weigh in on a new state law that puts restrictions on citizen initiatives are dropping their referendum effort.

Instead, the Voters of Arizona group hopes to focus its finances on defeating the law in court.

The group, led by former Attorney General Grant Woods and former Phoenix Mayor Paul Johnson, spent the past few months trying to collect the more than 75,000 signatures needed to refer the issue to the ballot.

Meanwhile, state lawyers and attorneys representing a broad coalition of individuals and advocacy groups faced off during two days of hearings this week before Maricopa County Superior Court Judge Sherry Stephens.

Stephens said she would make a decision by Aug. 4 — five days before the law takes effect.

The Legislature and Gov. Doug Ducey passed House Bill 2244 this session. It requires the mechanics of the initiative effort — from the size of the petition to the font size of the text — to strictly comply with state law. 

Republican lawmakers who supported it said it would help prevent fraud. Opponents argued the law ultimately is intended to prevent residents from making an end-run around the Legislature by putting their own proposals on the ballot.

RELATED: GOP says initiative bills ‘protect the process’

Voters of Arizona had used a combination of paid and volunteer circulators to collect signatures.

On Friday, committee consultant Joe Yuhas said they were halting the use of paid circulators so they could focus the group’s limited funds on the legal battle. 

“Given our limited resources … we couldn’t sustain a paid petition drive and litigation so we had to make a choice,” Yuhas said. “With litigation proceeding this week, which we’re optimistic about, we have to deploy those resources in a way that would be most effective.” 

Without paid circulators, Yuhas conceded, it would be nearly impossible to gather enough signatures by the Aug. 8 deadline. 

“We always saw that as supplemental to the paid effort,” he said. “We’re realistic.” 

He said if there were an influx of funds, the group could restart the petition effort. 

Yuhas said he felt confident about how court arguments went this week. 

“It changes a right that Arizona voters have had since statehood,” he said. “I felt overall we presented a strong case. Now we’re just awaiting a decision.”

During court proceedings, the attorney for the advocacy groups argued the Legislature overstepped its bounds, and the new law is unconstitutional.

The attorney representing the state argued the Legislature has the right to toughen the state law, even though the state Supreme Court has historically held initiative efforts to a lower legal standard.

Yuhas said the losing side will likely appeal. 

Resident-led initiatives have been part of the Arizona lawmaking process since statehood. Successful efforts have included banning smoking in bars and restaurants and raising the minimum wage. 

Last fall’s successful minimum-wage campaign, Proposition 206, helped propel the new laws that restrict initiative efforts. The Arizona Chamber of Commerce and Industry and other business groups upset about the citizen-imposed mandate advocated for the laws.

A separate group, Refer 2404, continues to collect signatures in its effort to refer a different law to the ballot and overturn it. 

House Bill 2404, also passed this session, makes it illegal to pay petition gatherers per signatures, as is the current practice. 

Spokeswoman Cassy Loseke said they have volunteer petition gatherers collecting signatures across the state

The Associated Press contributed to this article.

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