CALIFORNIA CANNABIS COALITION et al., Plaintiffs and Appellants, v. CITY OF UPLAND et al., Defendants and Respondents.
S234148
IN THE SUPREME COURT OF CALIFORNIA
Filed 8/28/17
Ct.App. 4/2 E063664; San Bernardino County Super. Ct. No. CIVDS1503985
Here we consider the interplay of two constitutional provisions. First, sections 8 and 11 of article II of the state Constitution contain the people’s initiative power, which we have described as ” ‘one of the most precious rights of our democratic process.’ ” (Associated Home Builders etc., Inc. v. City of Livermore (1976) 18 Cal.3d 582, 591 (Associated Home Builders);
The question before us is whether article XIII C also restricts the ability of voters to impose taxes via initiative. The Court of Appeal here concluded that article XIII C does not constrain voters’ constitutional power to propose and
I.
The California Cannabis Coalition is a nonprofit corporation that drafted the medical marijuana initiative at issue here in 2014.2 The initiative proposed to repeal an existing City of Upland (City) ordinance banning medical marijuana dispensaries; to adopt regulations permitting and establishing standards for the operation of up to three dispensaries within the City; and to require that each dispensary pay the City an “annual Licensing and Inspection fee” in the amount of $75,000.
In September 2014, initiative proponents Nicole De La Rosa and James Velez3 filed a notice of their intent to circulate the initiative petition (
Various city departments thereafter prepared a joint agency report. Among other things, the report concluded that the $75,000 “fee” for the initiative would exceed the costs incurred from issuing a license to and conducting annual inspections of the dispensaries. The report estimated actual costs to be slightly more than $15,000 and found the excess amount of the fee to constitute a general tax. As such, the report determined that the initiative could not be voted on during a special election as required by
Plaintiffs then filed a petition for writ of mandate in superior court. They alleged that the City violated
Plaintiffs appealed, and the Court of Appeal reversed. The court held that article XIII C, section 2 only governs levies that are imposed by local government and, therefore, it does not apply to the voter initiative at issue
We granted the City’s petition for review on June 29, 2016. On November 8, 2016, the initiative at issue was submitted to the voters and defeated, with 64.38 percent voting no.7 While the case is thus technically moot, it nonetheless presents important questions of continuing public interest that may evade review. (Peterson v. City of San Diego (1983) 34 Cal.3d 225, 227.) We therefore exercise our discretion to retain the matter and address the issues.8 (People v. Carbajal (1995) 10 Cal.4th 1114, 1120, fn. 5.)
II.
We apply similar principles when construing constitutional provisions and statutes, including those enacted through voter initiative. (Silicon Valley Taxpayers’ Assn., Inc. v. Santa Clara County Open Space Authority (2008) 44 Cal.4th 431, 444.) Our primary concern is giving effect to the intended purpose of the provisions at issue. (Id. at p. 448 [explaining that we construe provisions “in a manner that effectuates the [enactors‘] purpose in adopting the law“].) In doing so, we first analyze provisions’ text in their relevant context, which is typically the best and most reliable indicator of purpose. (Larkin v. Workers’ Comp. Appeals Bd. (2015) 62 Cal.4th 152, 157; Kwikset Corp. v. Superior Court (2011) 51 Cal.4th 310, 321 [when interpreting voter initiatives, ” ‘we begin with the text’ “].) We start by ascribing to words their ordinary meaning, while taking account of related provisions and the structure of the relevant statutory and constitutional scheme. (Los Angeles County Bd. of Supervisors v. Superior Court (2016) 39 Cal.5th 282, 293; Bighorn-Desert View Water Agency v. Verjil (2006) 39 Cal.4th 205, 212 (Bighorn).) If the provisions’ intended purpose nonetheless remains opaque, we may consider extrinsic sources, such as an initiative’s ballot materials. (Larkin, at p. 158.) Moreover, when construing initiatives, we generally presume electors are aware of existing law. (In re Lance W. (1985) 37 Cal.3d 873, 890, fn. 11 (Lance W.).) Finally, we apply independent judgment when construing constitutional and statutory provisions. (Western States Petroleum Assn. v. Board of Equalization (2013) 57 Cal.4th 401, 416.)
A.
The people’s initiative power is contained in article II, sections 8 and 11. The former section provides, “The initiative is the power of the electors to propose statutes and amendments to the Constitution and to adopt or reject them.” (
The state Constitution was amended to include the initiative power in 1911. The Constitution “speak[s] of the initiative and referendum, not as a right granted the people, but as a power reserved by them.” (Associated Home Builders, supra, 18 Cal.3d at p. 591.) Since then, courts have consistently declared it their duty to ” ‘jealously guard’ ” and liberally construe the right so that it ” ‘be not improperly annulled.’ ” (Ibid.; see, e.g., Perry v. Brown (2011) 52 Cal.4th 1116, 1140.) Moreover, when weighing the tradeoffs associated with the initiative power, we have acknowledged the obligation to resolve doubts in favor of the exercise of the right whenever possible. (Associated Home Builders, at p. 591.) We more recently explained that the enactment of the initiative power was sparked by “dissatisfaction with the then governing public officials and a widespread belief that the people had lost control of the political process.” (Perry, at p. 1140.) Its purpose, in effect, was empowering voters to propose and adopt provisions “that their elected public officials had refused or declined to adopt.” (Id. at p. 1140.)
When the right of initiative was grafted onto the Constitution, the Legislature also enacted statutory procedures for city and county voters to exercise the right. (Tuolumne Jobs, supra, 59 Cal.4th at p. 1042, citing Stats. 1911, Ex. Sess. 1911, ch. 33, § 1, pp. 131-132.) Most relevant here is
And
Against this constitutional and statutory backdrop, we have held that the people’s power to propose and adopt initiatives is at least as broad as the legislative power wielded by the Legislature and local governments. (See, e.g., Santa Clara County Local Transportation Authority v. Guardino (1995) 11 Cal.4th 220, 253 (Guardino) [discussing statewide right to initiative]; DeVita v. County of Napa (1995) 9 Cal.4th 763, 775 (DeVita) [discussing local right to initiative]; Rossi, supra, 9 Cal.4th at p. 696 [noting “local initiative power may be even broader than the initiative power reserved in the Constitution“].) When voters exercise the initiative power, they do so subject to precious few limits on that power.9 (Rossi, at p. 695.) Moreover, we have explained that procedural requirements imposed on the Legislature and local governments do not similarly constrain the electorate’s initiative power without evidence that such was their intended purpose. (E.g., DeVita, at p. 785 [“existence of procedural requirements for the adoptions of local ordinances generally does not imply a restriction of the power of initiative“]; Associated Home Builders, supra, 18 Cal.3d at pp. 588, 593-596.) In Kennedy Wholesale, supra, 53 Cal.3d at pages 251 to 252, for example, we held that the constitutional requirement that the Legislature obtain a two-thirds vote before raising taxes (
Just how that power relates to taxation was the subject of our holding in Rossi, supra, 9 Cal.4th 688, which concerned a city ordinance added by voter initiative. When the statewide initiative power was originally adopted, we observed, “taxation was not only a permitted subject for the initiative, but
Whether the context involves taxation or not, all of these cases underscore how courts preserve and liberally construe the public’s statewide and local initiative power. Indeed, we resolve doubts about the scope of the initiative power in its favor whenever possible (Associated Home Builders, supra, 18 Cal.3d at p. 591), and we narrowly construe provisions that would burden or limit the exercise of that power (see Rossi, supra, 9 Cal.4th at p. 696; see also DeVita, supra, 9 Cal.4th at p. 781). It is against this backdrop that we consider whether article XIII C, section 2 applies when voters seek to impose taxes via initiative.10
B.
Article XIII C was added by Proposition 218, an initiative constitutional amendment adopted at the 1996 general election. Article XIII C, section 2, subdivision (b) provides, “No local government may impose, extend, or increase any general tax unless and until that tax is submitted to the electorate and approved by a majority vote. . . . The election required by this subdivision shall be consolidated with a regularly scheduled general election for members of the governing body of the local government . . . .” Despite no mention of voter initiatives, the City and the concurring and dissenting opinion (conc. & dis. opn., post, at pp. 1-2) contend this provision nonetheless applies to such instruments and, notwithstanding
By its terms, article XIII C, section 2 only applies to actions taken by a “local government.” To cabin uncertainty about what “local government”
First, the common understanding of local government does not readily lend itself to include the electorate, instead generally referring to a locality’s governing body, public officials, and bureaucracy.11 (See Bighorn, supra, 39 Cal.4th at p. 212 [using term’s ordinary meaning]; see also Black’s Law Dict. (4th ed. 1951) p. 824 [defining “local government” as “[t]he government or administration of a particular locality; especially, the governmental authority of a municipal corporation, as a city or county, over its local and individual affairs“].) Arguing to the contrary, the concurring and dissenting opinion relies on In re Pfahler (1906) 150 Cal. 71 (Pfahler), a 111-year-old case cited by none of the briefs. (Conc. & dis. opn., post, at pp. 5-7.) But that case considered whether a constitutional provision conferring local legislative power on “[a]ny county, city, town, or township” precluded a
Moreover, construing local government as an entity distinct from the public is consistent not only with how the term is used in the provision’s text, but also with how it is used in its findings and declarations. (Ballot Pamp., Gen. Elec. (Nov. 5, 1996) text of Prop. 218, p. 108 [“This measure protects taxpayers by limiting the methods by which local governments exact revenue from taxpayers” (italics added)]; see also Orange Citizens for Parks & Recreation v. Superior Court (2017) 2 Cal.5th 141, 154 [“The Governor’s Office of Planning and Research encourages local governments to structure their procedures to facilitate public involvement . . . .” (italics added)].) Contrary to the concurring and dissenting opinion (conc. & dis. opn., post, at pp. 2, 5, 8), this understanding also proves compatible with
Second, the only portion of article XIII C even mentioning the voters’ direct democracy rights appears in section 3. (
Although I agree with the majority that plaintiffs were entitled to have their proposed ordinance submitted to the voters at a special election, I cannot agree that approval at a special election would have suffered if, in fact, the challenged licensing and inspection fee was a general tax.
KRUGER, J.
I CONCUR:
LIU, J.
