News & Analysis as of

Proposition 218

Perkins Coie

Water District Rate Increases Violated Proposition 218

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A court of appeal invalidated a water district’s adopted rate increases, concluding that the district failed to meet its burden under Proposition 218 of establishing that the increases did not exceed the cost of providing the...more

Perkins Coie

Fifth Appellate District Agrees that Special Taxes Enacted by Initiative Do Not Require Two-Thirds Supermajority Vote.

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Another court of appeal has held that local special taxes adopted by a citizen-sponsored initiative do not require two-thirds voter approval. City of Fresno v. Fresno Building Healthy Communities, No. F080264. (5th Dist.,...more

Best Best & Krieger LLP

Special Taxes by Voter Initiative Not Restricted by Proposition 13 or Proposition 218

Court of Appeal Holds Only Simple Majority Needed to Impose Special Taxes by Initiative Power - While the California Constitution prohibits local governments from imposing a special tax without two-thirds voter approval,...more

Best Best & Krieger LLP

Cities May Record Special Assessment Liens for Delinquent Fees

Calif. Appellate Court Holds These Liens Not Subject to Prop. 218 - California cities are authorized by statute to record special assessment liens on property for delinquent solid waste service fees, an appellate court has...more

Best Best & Krieger LLP

Failure to Participate in Prop. 218 Hearing Does Not Bar Fee Challenge - Calif. Supreme Court Holds Such Hearings Do Not...

A ratepayer may challenge the method of allocating property-related fees without first participating in the public hearing for, and filing a written protest against, the adoption of such new or increased fees, the California...more

Downey Brand LLP

California Supreme Court Confirms Certain Groundwater Pumping Charges are Outside Scope of Prop 218

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On December 4, the California Supreme Court ruled that groundwater pumping charges levied to fund a basin-wide conservation and management program were not property-related fees subject to Proposition 218. The decision, City...more

Orrick, Herrington & Sutcliffe LLP

California Supreme Court Clarifies that Voter Initiatives Are Not Subject to Certain of Proposition 218’s Limitations on Local...

Since Proposition 218 was passed in 1996, which added Article XIIIC to the California Constitution (“Article XIIIC”), local governments have faced heightened restrictions in their abilities to impose taxes. Specifically,...more

Best Best & Krieger LLP

No Mandatory Exhaustion of Administrative Remedies for Proposition 218 Challenge - California Court of Appeal Allows Challenge to...

A ratepayer is not required to file a written protest or appear at a public hearing for the adoption of new or increased property-related fees prior to filing a legal challenge to those fees, a California Court of Appeal...more

Downey Brand LLP

Appellate Court Holds That Constitution Overrides Statutory Exemption Related to Proposition 218 Assessments; Reclamation...

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In a reversal of a lower court decision, the Third District Court of Appeal has held that the California Constitution’s provisions related to Proposition 218 override a statutory exemption that a school district argued...more

Nossaman LLP

[Webinar] Rate Issues and Design; Proposition 218 and Proposition 26 - January 12th, 1:00pm PST

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Join Nossaman attorneys for a timely discussion of issues related to water rate design and pricing. This webinar for CLE credit* will explain the theory of water rate design and address similarities and differences between...more

Best Best & Krieger LLP

Transient Occupancy (Hotel) Taxes May be Limited by Ruling

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California public agencies that impose transient occupancy (hotel) taxes may be limited in the tax they can collect from online transactions. The California Supreme Court on Monday ruled that TOT are limited to the...more

Best Best & Krieger LLP

California Appellate Court Holds Groundwater Pumping Fees are Property-Related Fees Subject to Prop. 218

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Decision Conflicts with a Separate Appellate Court Decision to be Considered by the California Supreme Court - In Great Oaks Water Company v. Santa Clara Valley Water District, originally issued March 26, the Sixth...more

Best Best & Krieger LLP

California Supreme Court Denies Requests to Depublish San Juan Capistrano Case

Action Means the Closely Watched Tiered Water Rate Case Is Final - The California Supreme Court on Wednesday denied requests to depublish the appellate court opinion in Capistrano Taxpayers Association v. City of San...more

Best Best & Krieger LLP

Proposition 218 Guide for Special Districts

In this Guide: - Taxes (Article XIII C) - Assessments, Fees and Charges (Article XIII D) - Assessments (Article XIII D, Sections 4 And 5) - Property-Related Fees and Charges (Article XIII D,...more

Best Best & Krieger LLP

City's Revenue Transfer From its Wastewater Utility to its General Fund Is Justified

California Appellate Court Holds that Transfer Did Not Violate Proposition 218 - In a challenge to the transfer of revenues from a city’s wastewater utility to its general fund, a California Appellate Court held Tuesday...more

Nossaman LLP

Does Voter Initiative Drain Water Providers' Power to Respond to Drought?

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As reported on Nossaman's Endangered Species Law & Policy blog, on April 1, 2015, Governor Jerry Brown issued a landmark executive order mandating water cutbacks for urban residents to address the state's historic drought....more

Best Best & Krieger LLP

San Juan Capistrano Tiered Water-Use Rates Decision

The Fourth District Court of Appeal’s decision finding that San Juan Capistrano’s tiered water-use rates structure violated Proposition 218 generated a lot of news coverage, as these structures are likely to be a tool water...more

Allen Matkins

Progressively Tiered Water Rates to Promote Conservation May Violate Proposition 218

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California's local water suppliers, hit with reduction requirements varying from 8% to 36% and potential penalties of up to $10,000 per day for noncompliance, are scrambling to figure out how to comply with these severe...more

Allen Matkins

Groundwater Fees in Flux Following Recent Conflicting Proposition 218 Cases

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With California in the midst of a record-breaking drought (as reported in a recent Allen Matkins legal alert, Governor Edmund G. Brown Jr. issued an Executive Order ordering mandatory actions to reduce California's water...more

Brownstein Hyatt Farber Schreck

Are Groundwater Extraction Fees Property Related or Regulatory Fees? It Depends

Two new Proposition 218-related cases published in March come to opposite conclusions in determining whether groundwater extraction and replenishment fees are “property-related” fees subject to Article XIII D of the...more

Best Best & Krieger LLP

Two California Appellate Court Rulings Demonstrate that Groundwater Pumping Fees are in the Eye of the Beholder

One Holds that the Fee is Subject to Prop. 26 and Another that it is a Property-Related Fee Subject to Prop. 218 - Two California Appellate Court decisions handed down this month address whether or not a local water...more

Best Best & Krieger LLP

Court Strikes Down Surcharge on Utility Users Imposed Under a Franchise Agreement

Surcharge Collected for General Revenue Purposes Under a Franchise Agreement must be Approved by Voters - A surcharge on electric utility bills collected by a power company pursuant to a franchise agreement and remitted...more

Best Best & Krieger LLP

Local Agencies that Can Recover Fees Through Prop 218 Process are Ineligible for State Reimbursements

Decision from the Commission on State Mandates - Several agricultural water suppliers seeking reimbursement for state-mandated activities under the Water Conservation Act of 2009 are ineligible to receive state...more

Best Best & Krieger LLP

Stormwater Management Services That Provide a Water Supply Source May Be Funded With Water Service

New Legislation Defines Water for Purposes of Proposition 218 to Include Water from Any Source - Bill 2403 amends the definition of “water” contained in the Proposition 218 Omnibus Implementation Act to “include...more

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