Department of Finance, Plaintiffs and Respondents v. Commission on State Mandates, Defendant and Respondent…

Summary

The court held that permit conditions requiring local storm-drain operators to conduct specified inspections and install trash receptacles were state-imposed requirements, not federally mandated conditions exempt from reimbursement. Federal law required permits and compliance with a general maximum-extent-practicable standard, but it left the Regional Board discretion to select particular controls, and the record showed that the Board imposed or shifted these obligations through its own discretionary action. The court reversed the Court of Appeal and remanded for consideration of unresolved issues, including the operators’ cross-petition concerning fee authority. Cuéllar, J., concurring in part and dissenting in part, would have remanded for the Commission to reconsider its decision under a more flexible analysis that deferred to the Regional Board’s expertise.