Dept. of Finance v. Commission on State Mandates

In Department of Finance v. Commission on State Mandates, 1 Cal.5th 749 (2016) ("Department of Finance"), the California Supreme Court upheld a Commission ruling that certain conditions a regional water quality control board imposed on a storm water discharge permit issued under federal and state law required subvention and were not federal mandates. The Supreme Court found no federal law, regulation, or administrative case authority expressly required the conditions; the federal requirement that the permit reduce pollution impacts to the “maximum extent practicable” was not a federal mandate, but rather vested the regional board with discretion to choose which conditions to impose to meet the standard. The permit conditions resulting from the exercise of that choice were state mandates. In this appeal, the Court of Appeal faced the same issue: the parties and the permit conditions were different, but the legal issue was the same - whether the Commission correctly determined that conditions imposed on a federal and state storm water permit by a regional water quality control board are state mandates. The Commission reached its decision by applying the standard the Supreme Court later adopted in "Department of Finance." The trial court, reviewing the case before "Department of Finance" was issued, concluded the Commission had applied the wrong standard, and it remanded the matter to the Commission for further proceedings. The Court of Appeal concluded here the Commission applied the correct standard and the permit requirements were state mandates. View "Dept. of Finance v. Commission on State Mandates" on Justia Law