Regents of University of California v. East Bay Municipal Utility District

Opinion

GEMELLO, J.

In San Marcos Water Dist. v. San Marcos Unified School Dist. (1986) 42 Cal.3d 154 [228 Cal.Rptr. 47, 720 P.2d 935] (San Marcos), the Supreme Court held that the constitutional public entity exemption from special assessments prohibited a local water district from imposing a capacity fee used to fund capital improvements to the water system, absent legislative authorization. The Legislature responded to the San Marcos decision by enacting Government Code section 54999 et seq., 1 often referred to as the San Marcos Legislation, authorizing public utilities to impose “capital…