One Additional Legal Challenge To AB 32: Prop 26

One addendum to my post on new developments and cap-and-trade.  I should have mentioned that Proposition 26 — which tightened the 2/3s vote requirement for taxes to include fees — may be the basis for another legal challenge to the cap-and-trade program.  California voters approved Prop 26 in 2010.  Unless Prop 26 is found to be retroactive, which the Emmett Center has previously concluded it should not be, any lawsuit challenging cap-and-trade on the grounds that it raises fees that should be subject to a 2/3s vote of the Legislature rather than a mere majority should fail.  But just because a lawsuit is likely to fail doesn’t mean it won’t be filed.  We’re likely to see whether a Prop 26 suit will be filed in the next couple of weeks once the auction is up and running.  As always, stay tuned.

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