American Coatings Association, Inc. v. State Air Resources BoardAnnotate this Case
The California State Air Resources Board, pursuant to Health and Safety Code 39613, imposed fees on manufacturers who sold consumer products and architectural coatings that emitted volatile organic compounds (VOCs) of 250 tons or more per year. The Board implemented the statute by adopting regulations that impose a uniform fee per ton on all affected manufacturers. Appellant American Coatings Association, Inc. (the Association) sought a declaration that the statute and regulations were unlawful and unenforceable, and a peremptory writ of mandate commanding the Board to vacate the regulations. The trial court denied the petition and complaint. On appeal, the Association contended the statute was a tax subject to Proposition 13, the fees imposed did not bear a reasonable relationship to the manufacturers’ regulatory burden, the statute unlawfully delegated revenue authority to the Board, and the statute’s regulations were arbitrary and capricious. Finding no reversible error in the trial court's judgment, the Court of Appeal affirmed.