Sinclair Paint Co. v. State Bd. of Equalization

No. SO54115 (Cal. Sup. Ct. June 26, 1997) ; Clearinghouse Number: 50702

Description

California Childhood Lead Poisoning Prevention Act’s Imposition of Fees on Lead Paint Manufacturers Upheld

Abstract

The California Supreme Court has held that fees imposed under California’s Childhood Lead Poisoning Prevention Act are not "taxes" required to be enacted by a two-thirds majority of the state legislature. The Act provides evaluation, screening, and medically necessary follow-up services for children deemed potential victims of lead poisoning. These programs are funded entirely by fees assessed on manufacturers or others contributing to environmental lead contamination. Arguing that the fees imposed by the Act were actually taxes, plaintiff paint manufacturer claimed that the Act was invalid on its face because it had not been passed by a two-thirds majority vote of the state legislature. The trial court found that the Act imposed an unconstitutional tax and granted plaintiff’s motion for summary judgment. The appellate court affirmed, and defendant state officials appealed. Reversing, the supreme court held that the Act imposed bona fide regulatory fees, not taxes, on plaintiffs. The court noted that the legislature had imposed the fees to mitigate the actual or anticipated adverse effects of the fee payers’ operations and, under the Act, the amount of the fees must bear a reasonable relationship to those adverse effects.

Additional Information

Attorney Information
Docket Date
1997-06-26 00:00:00+00:00

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