Morning Star Co. v. Board of Equalization

*742 Opinion

In this appeal, we uphold the validity of a regulation adopted by defendant Department of Toxic Substances Control (the Department)—California Code of Regulations, title 22, section 66269.1 (the Regulation)—which interprets its underlying statute, Health and Safety Code section 25205.6. 1 We also conclude that section 25205.6 imposes a constitutionally valid tax. Section 25205.6 imposes an annual charge on those types of businesses, with at least 50 employees, which use, generate, store, or conduct activities in California related to hazardous materials. (§ 25205.6, subds. (b), (c).)

We have seen this matter before; in fact, twice before. So too has the state Supreme Court. Contrary to our first opinion, 2 the Supreme Court subsequently concluded in Morning Star Co. v. State Bd. of Equalization (2006) 38 Cal.4th 324 [ 42 Cal.Rptr.3d 47 , 132 P.3d 249 ] (Morning Star) that the Department’s broad interpretation of former section 25205.6—as applicable to essentially all corporations with at least 50 employees, given that most modem office equipment contains hazardous materials—constituted a “regulation” subject to the formal rulemaking procedures of the Administrative…