Governor Jerry Brown signed a bill Thursday that prohibits new local taxes on sugary drinks through 2030, seeking to derail what he called “an abomination” of a ballot initiative planned by the beverage industry to make it harder to pass soda taxes.
“This bill established a moratorium on imposing new assessments on ‘groceries’ at the local level,” Brown said in a message to members of the Assembly after signing Assembly Bill 1838.
“Out of 482 cities in the state of California, a total of four cities are considering passing a soda tax to combat the dangerous and ill effects of too much sugar in the diets of children,” Brown said. “In response, the beverage industry has circulated a far-reaching initiative that would, if passed, raise the approval threshold from 50 percent to two-thirds (majority) on all measures, on all topics in all 482 cities.
“Mayors from countless cities have called to voice their alarm and to strongly support the compromise which this bill represents.
“The initiative also contains language that would restrict the normal regulatory capacity of the state by imposing a two-thirds legislative vote on what is now solely within the competency of state agencies.
“This would be an abomination.
“For these reasons, I believe Assembly Bill 1838 is in the public interest and must be signed.”
The bill’s text reads, in part:
“This bill, on and after the effective date of this chapter and until January 1, 2031, would prohibit the imposition, increase, levy and collection, or enforcement by a local agency of any tax, fee, or other assessment on groceries, except as provided.
“This bill would allow a local agency to continue to levy and collect, enforce, or reauthorize any tax, fee, or other assessment on groceries imposed, extended, or increased on or before January 1, 2018,” the text continues. “This bill would make inoperative on the effective date of this measure any tax, fee, or other assessment on groceries imposed by a local agency after January 1, 2018.”
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