The California Third District Court of Appeal recently affirmed that the penalty provision of California’s Keep Groceries Affordable Act of 2018 (AB 1838) is unconstitutional. The provision penalized a city that lawfully enacts a sugary drink tax by taking away that city’s sales tax revenue. The court affirmed a 2021 trial court ruling in a lawsuit filed in 2020, which was supported by ChangeLab Solutions.
A recent article in the Santa Cruz Sentinel summarized the implications of the ruling for charter cities in California that are considering enacting sugary drink taxes (like Santa Cruz, where one of the plaintiffs is from). The article quoted ChangeLab Solutions' vice president of law and policy, Sabrina Adler, on how this ruling may apply to state-level preemption across the US: “The important message here is that corporations and interest groups can’t sidestep the law to protect their bottom line,” said Adler. “When corporate interests remove local authority, it has a detrimental effect on local democracy, self-determination, health equity and community well-being.”
“The important message here is that corporations and interest groups can’t sidestep the law to protect their bottom line. . . . When corporate interests remove local authority, it has a detrimental effect on local democracy, self-determination, health equity and community well-being.” ―Sabrina Adler
The ruling has significant implications for public health efforts to reduce the consumption of sugary drinks, which have been linked to a range of health problems, including diabetes. Several other charter cities in California have already implemented sugary drink taxes, and the ruling is expected to encourage more cities to follow suit. The decision is a victory for public health, highlighting the importance of local regulatory control and the ability of cities to take action to address public health issues that affect their residents.
Read the full article on the Santa Cruz Sentinel website.
4/13/2023
