Garst v. Tehama County Flood Control & Wat. Conservation Dist.
CourtCalifornia Court of Appeal
Date FiledJune 29, 2026
DocketC103356
StatusPublished
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Full Opinion
Filed 6/29/26
CERTIFIED FOR PUBLICATION
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
THIRD APPELLATE DISTRICT
(Tehama)
DAVID GARST, as Trustee, etc., C103356
Plaintiff and Respondent,
(Super. Ct. No. 23CI000079)
v.
TEHAMA COUNTY FLOOD CONTROL AND
WATER CONSERVATION DISTRICT,
Defendant and Appellant.
APPEAL from a judgment of the Superior Court of Tehama County, Bradley L.
Boeckman, Judge. Affirmed as modified.
Margaret E. Long, County Counsel, Daniel B. Klausner, Deputy County Counsel
(Tehama); Colantuono, Highsmith & Whatley, Michael G. Colantuono and Matthew W.
McAleer for Defendant and Appellant.
Swanson Law Office, Mark D. Norcross, Jeffery J. Swanson and Adam M.
Pressman for Plaintiff and Respondent.
Best Best & Krieger and Lutfi Kharuf for League of California Cities, California
State Association of Counties, and California Special Districts Association as Amici
Curiae.
This appeal concerns the validity of a groundwater well registration charge (well
registration charge) adopted by the Tehama County Flood Control and Water
Conservation District (District) and imposed on every parcel of land in the County of
Tehama (County) regardless of whether the property uses groundwater or has a
1
groundwater well. 1 The trial court granted David Garst’s petition for writ of mandate,
finding the well registration charge was an unlawful tax and mandating the District to,
among other things, refund all collected charges to the taxpayers in the County. The
District appeals.
The District 2 asserts the well registration charge is a valid regulatory fee (and thus
not a tax) under California Constitution 3 article XIII C, section 1, subdivision (e)(3)
(article XIII C, section 1(e)(3)). It further raises a myriad of affirmative defenses, the
majority of which are premised on the District’s assertion that it adopted the well
registration charge under Water Code4 section 10730, subdivision (a) (section 10730(a))
within the Sustainable Groundwater Management Act (§ 10720 et seq.) (the Act). In the
alternative, the District argues refunds are procedurally and substantively barred and are
not required as a matter of due process.
We initially reject the District’s affirmative defenses against Garst’s claims,
concluding, in part, the District failed to show that the well registration charge comports
with section 10730(a). Next, assuming but not deciding that the District appropriately
1 As explained post, the District’s Resolution No. 9-2022 imposed the well registration
charge on every parcel of land in the County. The parties agree, however, that the
District at some point decided to collect the charge only on parcels that are larger than
five acres. The parties do not refer us to anything in the record showing the District took
that action. Because the purported modification as to the District’s collection of the well
registration charge is largely immaterial to the arguments presented on appeal and given
the record before us, we analyze the arguments based on the District’s resolution
imposing the well registration charge on all parcels within the County.
2 The League of California Cities, California State Association of Counties, and
California Special Districts Association (collectively amici) filed an amici curiae brief in
support of the District’s appeal.
3 Undesignated article references are to the California Constitution.
4 Undesignated section references are to the Water Code.
2
adopted the well registration charge under alternate delegated authority, we consider the
constitutionality of the charge. In that regard, we decline to address the parties’ dispute
as to whether the analytical framework in article XIII C, as amended by Proposition 26,
or article XIII D, added by Proposition 218, applies because resolution of the question is
immaterial to the disposition of this appeal. The parties agree that the well registration
charge does not fall within the property-related service fee exception in article XIII D,
section 3, subdivision (a)(4), and we conclude the District has failed to show that the well
registration charge is a regulatory fee within the meaning of article XIII C, section
1(e)(3). As such, we conclude the charge constitutes an unconstitutional tax. We,
however, modify the judgment to strike the provision mandating the District to refund the
well registration charge because Garst did not comply with the Government Claims Act
(Gov. Code, § 810 et seq.).
BACKGROUND
I
The Act
The Legislature adopted the Act to regulate “California’s groundwater by
identifying its most impacted basins, mandating local agencies govern those basins,
requiring those agencies to submit sustainable use plans for state approval, and allowing
for state intervention if needed.” (State Water Resources Control Bd. v. Superior Court
(2025) 115 Cal.App.5th 734, 750.) The goals of the Act are, among other things, to
“establish[] minimum standards for sustainable groundwater management, giv[e] local
groundwater authorities the power and support to sustainably manage groundwater, and
creat[e] a more efficient and cost-effective groundwater adjudication process that protects
water rights, ensures due process, and prevents unnecessary delay.” (Mojave Pistachios,
LLC v. Superior Court (2024) 99 Cal.App.5th 605, 616 (Mojave Pistachios), citing
§ 10720.1.)
3
To meet these goals, the Legislature authorized the creation of groundwater
sustainability agencies to develop and create groundwater sustainability plans (§§ 10723-
10724), and granted those agencies several powers, including the power to “require
registration of a groundwater extraction facility within the management area of the
groundwater sustainability agency” (§ 10725.6). A “[g]roundwater extraction facility” is
“a device or method for extracting groundwater from within a basin.” (§ 10721, subd.
(h).)
II
The District as a Groundwater Sustainability Agency
A substantial portion of land within the County overlays 11 groundwater
subbasins. In 2015, the District became the groundwater sustainability agency for those
subbasins. The District thereafter entered into a memorandum of understanding with the
County in which the District assumed the responsibility to “perform all groundwater
monitoring, regulation setting, and groundwater extraction registration programs” and
“pay all costs and recover such costs for its monitoring, regulating, and registration
activities.” The District agreed to “either perform or contract for the performance of all
groundwater extraction facility registration and groundwater monitoring activities as
required under any applicable groundwater sustainability management program.”
III
The District’s Resolutions and the Litigation
In June 2022, the District adopted Resolution No. 9-2022. The resolution states
section 10725.6 permits groundwater sustainability agencies to require registration of
groundwater extraction facilities within their management areas and the District will
incur actual and reasonable costs to receive and process such registrations. The
resolution further states section 10730(a) “provides that a groundwater sustainability
agency may impose fees for regulated activities to fund the cost of the groundwater
sustainability program including but not limited to ‘investigations, inspections,
4
compliance assistance, enforcement, and program administration.’ ” The District
resolved that it required groundwater extraction facilities in the County to be registered
and imposed an annual charge of $0.29 per acre on each legal parcel of land within the
County for three years to pay the administrative costs of a well registration program. The
charge would be added to the tax rolls and collected like ordinary ad valorem taxes.
The District found the amounts of the well registration charge to be “reasonably
necessary to recover the costs of providing the services described [in the resolution], and
that the costs imposed by such [charges were] fairly apportioned so that charges allocated
to any payor w[ould] bear a fair and reasonable relationship to the payor’s burdens on or
benefits from the services performed by the [District].” The District further found that
the well registration charge was being imposed “for a specific government service
provided directly to the payor that [wa]s not provided to those not charged, and d[id] not
exceed the reasonable costs to the County of providing the service.” 5
Garst sued the District on April 3, 2023, for declaratory relief and a writ of
mandate and, in the alternative, a writ of administrative mandate (complaint). Garst
alleged, among other things, that the District violated Propositions 218 and 26 in
adopting the well registration charge. In his prayer for relief, Garst requested, among
other things, a peremptory writ of mandate or, in the alternative, administrative mandate
directing the District to set aside, vacate, or rescind the well registration charge; refund
Garst for any payment of the charge; and refrain from charging Garst a well registration
charge absent the District complying with its legal obligations. Garst also requested a
judicial declaration of the foregoing.
5 This language tracks the exception in article XIII C, section 1, subdivision (e)(2). The
District does not argue that the exception in article XIII C, section 1, subdivision (e)(2)
applies to the well registration charge. It argues the regulatory fee exception in article
XIII C, section 1(e)(3) applies instead.
5
In June 2023, the District adopted Resolution No. 3-2023. The resolution states
that Resolution No. 9-2022 initiated the District’s well registration program (program)
and imposed a charge on property owners to pay the costs of that program. The
resolution identified two goals of the program as: (1) “to develop information necessary
to calculate a groundwater fee to support the program of monitoring the groundwater
throughout Tehama County” and (2) “to develop information necessary to ensure
groundwater sustainability and quality throughout Tehama County.” The resolution
further states that compliance with the program “will help to support the fairness and
equity of any groundwater fee ultimately imposed by the District” and “help to ensure
programs for protecting the water supply and quality of the aquifers throughout Tehama
County.” The resolution sets forth the minimum requirements for a property to be
deemed in compliance with the program and the District’s finding that the elimination of
the fee in years subsequent to a compliance determination may encourage greater
cooperation and serve “a greater public purpose than is served by collecting the fee.”
In Resolution No. 3-2023, the District resolved that its board would receive a list
of parcels meeting the compliance criteria outlined in the resolution by May 31 of a given
year and would determine whether to waive the subsequent well registration charges for
those parcels. The resolution also provides a process for a property owner to request a
waiver when the owner’s property is not included on the compliance list submitted to the
board.
In July 2023, the District adopted Resolution No. 4-2023. Therein, the District
stated that its board had received two lists of parcels—one identifying parcels meeting
the compliance requirements for a waiver as outlined in Resolution No. 3-2023 and
another identifying parcels for which the well registration charge would be added to the
tax rolls. The District made various findings and resolved that it waived the well
registration charge for those parcels identified on the compliance list and adopted the
well registration charge for the parcels identified on the noncompliant list. The District
6
waived the well registration charge for Garst’s parcels for the second and third years of
the program.
In 2024, Garst filed his opening brief in the trial court, arguing Resolution No. 9-
2022 did not comply with section 10730 and was invalid under the California
Constitution. Garst filed a declaration in support of his brief stating that he and his wife
are trustees of a trust owning 40 parcels within the County. All of the parcels are subject
to a recorded conservation easement. Garst has three groundwater wells on two parcels
that are used for domestic and residential irrigation purposes; he does not have
groundwater wells on any other parcels. 6 In November 2022, Garst received tax bills for
all of the parcels for the fiscal year running from July 1, 2022, through June 30, 2023.
After paying the tax bills out of the trust’s account, Garst noticed that the taxes for the
properties had increased by approximately $4,000, which he then learned was for a well
registration program.
In its opposition to Garst’s brief, the District argued, among other things, Garst’s
challenge was barred because: (1) he failed to “pay first, litigate later”; (2) he failed to
comply with the Government Claims Act; (3) he did not exhaust his administrative
remedies under section 10726.6, subdivision (d) (section 10726.6(d)); and (4) he did not
6 Several of the District’s statements regarding Garst’s purported water use are not
supported by the record. First, the District states Garst “admits his own water use is
significant” based on his declaration and the conservation easement attached to his
declaration. There is no such statement in Garst’s declaration and merely because the
conservation easement permits Garst to use his property in certain ways does not mean he
does use the property for such purposes. Second, the District asserts that Garst’s “cattle
operation excludes him from” being a de minimis groundwater extractor (i.e., a person
who extracts two acre-feet or less of groundwater per year for domestic use), without any
citation to the record. Nothing in Garst’s declaration indicates that he runs a cattle
operation. Finally, the District asserts, citing Garst’s declaration, that Garst uses
groundwater for livestock. Again, nothing in Garst’s declaration supports that assertion.
Garst declared he uses the groundwater wells for “residential use and residential
irrigation.”
7
file the action within the 180-day statute of limitations provided in section 10726.6,
subdivision (c) (section 10726.6(c)). The District further argued the well registration
charge was a valid regulatory fee because both section 10730(a) and article XIII C,
section 1(e)(3) allow the imposition of fees for investigations, and the District otherwise
complied with Proposition 26’s requirements. The District filed two consultant
declarations in support of its opposition.7
Greg Clumpner, a consultant to public agencies for the purpose of ratemaking,
declared that, in his opinion, the District’s estimated budget of $360,000 per year was
reasonable and the well registration charge was “generally justifiable given the District
was using the best available data at the time.” He further declared it was reasonable to
use the well registration charge as “a downpayment” to be credited against a later
“updated fee” that would provide “a more nuanced allocation of costs” and a more
equitable allocation of the burden of the program based on the data to be obtained.
The second declaration was submitted by Eddy Teasdale, a hydrologist, who
declared, among other things, parcels without groundwater wells receive a benefit from a
countywide sustainability groundwater program due to the hydrological connection
between surface water and groundwater and countywide water resource management is
crucial to ensuring sustainable water resources are available.
In the bench trial, the trial court ruled against the District on its affirmative
defenses and found: (1) the District acted in good faith in establishing the well
registration charge; (2) the District imposed the well registration charge for a legitimate
purpose; (3) the District can impose proper, valid regulatory fees regardless of whether a
property overlays a subbasin; (4) the charge identified in Resolution No. 9-2022 was
reasonable; (5) however small the charge, the well registration charge was not related to
7 The District refers to its consultants as experts. The District does not, however,
provide a record citation indicating the trial court designated its consultants as such.
8
the property; (6) the “burden created by the property on the government is not in any way
related to a service provided by the government or a benefit provided by the government
to the property owner”; and (7) the well registration charge imposed by Resolution No. 9-
2022 was a tax. The trial court issued a writ of mandate directing the District to rescind
the tax imposed under Resolution No. 9-2022, refund all sums collected from taxpayers
under that resolution, and to cease and desist any further tax collection efforts related to
Resolution No. 9-2022. The trial court further awarded Garst attorney fees and
recoverable costs. The District appeals. 8
DISCUSSION
We commence the analysis by addressing the District’s affirmative defenses to
Garst’s claims and find none of them persuasive. We next consider whether the well
registration charge passes constitutional muster, concluding it does not. Finally, we hold
the trial court erred in mandating the District to refund the unconstitutional tax because
Garst did not comply with the Government Claims Act.
I
The District’s Affirmative Defenses to Garst’s Claims Lack Merit
A. Further Legal Background
As noted ante, groundwater sustainability agencies have the power, among others,
to impose fees. (§ 10730, subd. (a).) The Legislature, however, placed a caveat on this
financial authority—a groundwater sustainability agency “shall not impose” any such fee
“on a de minimis extractor unless the agency has regulated the users pursuant to [the
Act].” (Ibid.) A de minimis extractor “means a person who extracts, for domestic
purposes, two acre-feet or less per year.” (§ 10721, subd. (e).) Any fee adopted under
8 The District does not appeal the trial court’s award of attorney fees and recoverable
costs.
9
section 10730(a) may be collected in the same manner as ordinary municipal ad valorem
taxes. (§ 10730, subd. (d).)
A fee levied under section 10730 “shall be due and payable to the groundwater
sustainability agency by each owner or operator on a day established by the groundwater
sustainability agency.” (§ 10730.6, subd. (a).) The term “[o]perator” is defined as “a
person operating a groundwater extraction facility,” and the term “[o]wner” is defined as
“a person owning a groundwater extraction facility or an interest in a groundwater
extraction facility other than a lien to secure the payment of a debt or other obligation.”
(§ 10721, subds. (o), (p).)
“If an owner or operator knowingly fails to pay a groundwater fee within 30 days
of it becoming due” (§ 10730.6, subd. (b)), the owner or operator is liable for penalties
and interest on the delinquent amount (ibid.), and the groundwater sustainability agency
may sue the owner or operator to recover any delinquent fees, interest, or penalties
(id., subd. (c)) and may order the owner or operator to cease all groundwater extraction
until the delinquent fees are paid (id., subd. (e)).
A person may challenge a groundwater sustainability agency’s resolution
imposing a new fee or increasing an existing fee under section 10730(a) in court if the
action is filed within 180 days following the adoption of the resolution. (§ 10726.6, subd.
(c).) To do so, however, the person challenging the fee must pay it before bringing an
action for a refund. (Mojave Pistachios, supra, 99 Cal.App.5th at p. 631, citing
§ 10726.6, subd. (d).) The person seeking a refund must further bring the action in
accordance with “the manner provided for the payment of taxes under protest and actions
for refund of that payment in Article 2 (commencing with Section 5140) of Chapter 5 of
Part 9 of Division 1 of the Revenue and Taxation Code, as applicable.” (§ 10726.6, subd.
(d).)
10
B. The Statute of Limitations Under Section 10726.6(c) Does Not Apply
Section 10726.6(c) provides that “[a]ny judicial action or proceeding to attack,
review, set aside, void, or annul the ordinance or resolution imposing a new, or increasing
an existing, fee imposed pursuant to Section 10730 … shall be commenced within 180
days following the adoption of the ordinance or resolution.” The District argues Garst’s
challenge to the well registration charge is barred because the charge was adopted under
section 10730(a) and Garst filed suit more than 180 days after the District adopted
Resolution No. 9-2022. Garst disagrees, asserting section 10726.6(c) is inapplicable
because the charge was not imposed pursuant to section 10730. Garst contends a charge
under section 10730 can only be imposed for regulated activities and, here, the charge
was imposed “on all parcel owners in the County ‘regardless of use,’ ” including
landowners who extract no groundwater or qualify as de minimis extractors.
We agree with Garst that the District failed to show it adopted the charge under
section 10730(a), and thus section 10726.6(c) does not apply.
“An affirmative defense, the statute of limitations exists to promote the diligent
assertion of claims, ensure defendants the opportunity to collect evidence while still
fresh, and provide repose and protection from dilatory suits once excess time has passed.
[Citations.] The duration of the limitations period marks the legislatively selected point
at which, for a given claim, these considerations surmount the otherwise compelling
interest in adjudicating on their merits valid claims.” (Aryeh v. Canon Business
Solutions, Inc. (2013) 55 Cal.4th 1185, 1191.) The defendant bears the initial burden of
proving the plaintiff’s claims are barred by the applicable statute of limitations. (Id. at
p. 1197; Evid. Code, § 500 [defendants bear the burden of proving an affirmative
defense].) Thereafter, the burden shifts to the plaintiff to demonstrate the plaintiff’s
claims survive based on one or more nonstatutory exceptions to the basic limitations
period, if applicable. (Aryeh, at p. 1197.) “The application of the statute of limitations
11
on undisputed facts is a purely legal question [citation]; accordingly, we review the [trial
court’s] rulings de novo.” (Id. at p. 1191.)
The District asserts the charge “is what it appears to be—an exercise of authority
granted by [the Act] and therefore subject to [the Act’s] statute of limitations” because
the District “is the groundwater regulatory agency for the whole County” and it recited
the language of section 10730(a) in Resolution No. 9-2022. But merely reciting the
language of a statute and saying it applies does not make it so. After reading provisions
of the Act together, the District exceeded the scope of its statutory authority under section
10730(a) by imposing the well registration charge on all landowners within the County. 9
The words in statutes are to be construed in context and “statutes must be
harmonized, both internally and with each other, to the extent possible.” (California
Mfrs. Assn. v. Public Utilities Com. (1979) 24 Cal.3d 836, 844.) Accordingly, statutes
are construed together if they stand in pari materia. (Walker v. Superior Court (1988) 47
Cal.3d 112, 124, fn. 4.) “ ‘Statutes are considered to be in pari materia when they relate
to the same person or thing, to the same class of person[s] [or] things, or have the same
purpose or object.’ ” (Ibid.) Here, harmonizing the statutes within chapter eight of the
Act and reading them together, we conclude a groundwater fee adopted under section
10730(a) may only be imposed on owners or operators of groundwater extraction
facilities.
9 We reject the District’s assertion in its reply brief that it imposed the well registration
charge only on those landowners who “do or might use groundwater.” (Boldface
omitted.) The District provides no citation to the record for the statement. (McOwen v.
Grossman (2007) 153 Cal.App.4th 937, 947 [“Statements of fact that are not supported
by references to the record are disregarded by the reviewing court”].) We further find no
basis in the District’s consultant’s report, cited by the District, for the apparent contention
that the District considered existing and potential groundwater use when it imposed the
well registration charge.
12
Section 10730(a), which authorizes the adoption of a groundwater fee, and section
10730.6, which addresses collection of a groundwater fee and remedies for nonpayment,
relate to the same persons (i.e., fee payor) and thing (i.e., a groundwater fee), and have
the same purpose or object (i.e., a groundwater sustainability agency’s financial authority
to fund the costs of a groundwater sustainability program). The statutes are located
together in chapter eight of the Act. Although section 10730(a) is silent as to the identity
of the fee payor (except to exempt a de minimis extractor not regulated under the Act),
section 10730.6 is not. Section 10730.6 expressly states that the payor of a groundwater
fee adopted under section 10730(a) is “each owner or operator.” (§ 10730.6, subd. (a).)
Thus, a groundwater fee adopted under section 10730(a) pertains to properties with
groundwater extraction facilities, unless the de minimis extractor exemption applies.
Here, the District imposed the well registration charge on all landowners within
the County regardless of whether a device or method for extracting groundwater from a
basin exists on the respective parcels. 10 The District thus exceeded the scope of its
delegated authority under section 10730(a) and its act of adopting the well registration
charge pursuant to that statute is void. (Benton v. Board of Supervisors (1991) 226
Cal.App.3d 1467, 1480 [“[a]n administrative agency may not, under the guise of
rulemaking, abridge or enlarge its authority or exceed the powers given to it by the
statute—the source of its power”]; Water Replenishment Dist. of Southern California v.
City of Cerritos (2012) 202 Cal.App.4th 1063, 1072 [“[a]n agency that exceeds the scope
10 In light of this conclusion, we do not address the District’s arguments that the well
registration charge complied with the de minimis extractor limitation in section 10730(a).
We note, however, the District cites no evidence for the assertion that the 5.02-acre
minimum serves to exempt de minimis extractors from paying the charge (Villacorta v.
Cemex Cement, Inc. (2013) 221 Cal.App.4th 1425, 1433 [argument of counsel is not
evidence]), and its consultant wrote County personnel told him “[d]e minimis parcels
(i.e., those less than 5.02 acres) were excluded because the costs of collecting these fees
would outweigh the revenues.”
13
of its statutory authority acts ultra vires and the act is void”]; California Assn. of
Psychology Providers v. Rank (1990) 51 Cal.3d 1, 11 [“[a]dministrative regulations that
alter or amend the statute or enlarge or impair its scope are void and courts not only may,
but it is their obligation to strike down such regulations”].) The statute of limitations
under section 10726.6(c) accordingly does not apply.
The District urges section 10726.6(c) applies if we read section 10730(a) in
congruence with: (1) section 10725.2, subdivision (a), which provides “[a] groundwater
sustainability agency may perform any act necessary or proper to carry out the purposes
of this part”; and (2) section 10725.4, which vests the District with investigatory power
“to prepare and adopt a groundwater sustainability plan” and “to propose and update
fees.” But neither statute addresses the identity of the fee payors or contradicts the
foregoing interpretation.
The cases upon which the District relies are also not persuasive. We do not read
the appellate court’s statement in Mojave Pistachios, supra, 99 Cal.App.5th at page 632,
footnote 20, that section 10726.6(c) “is the statute of limitations applicable to any action
challenging a groundwater fee ordinance, including a fee refund action under section
10726.6(d),” to mean the statute of limitations applies “to any facial challenge to a
groundwater fee,” (boldface added) as the District asserts. Nothing in that case relieves
the District of the burden to prove the charge was adopted pursuant to section 10730(a).
(§ 10726.6, subd. (c) [statute of limitations only applies to a “fee imposed pursuant to
Section 10730, 10730.2, or 10730.4”].)
Campana v. East Bay Municipal Utility Dist. (2023) 92 Cal.App.5th 494 is
likewise not helpful because it is distinguishable. In that case, the plaintiffs sought to
invalidate water rates under article XIII D, section 6, subdivision (b). (Campana, at p.
499.) The water district argued the 120-day limitations period under Public Utilities
Code section 14402 barred the plaintiffs’ claims; the appellate court agreed. (Campana,
at pp. 499-500, 507.) There was no question as to whether the water rates were adopted
14
in compliance with the Public Utilities Code. The case is thus inapposite. (Little v. Auto
Stiegler, Inc. (2003) 29 Cal.4th 1064, 1081, fn. 3 [cases are not authority for propositions
not considered]; cf. KCSFV I, LLC v. Florin County Water Dist. (2021) 64 Cal.App.5th
1015, 1031-1033 [statute of limitations under Gov. Code, § 66022, subd. (a) did not
apply because water district failed to prove the rate increase constituted a service charge
within the meaning of that statute].)
Finally, the District argues that, if it must prove the well registration charge was
imposed under section 10730(a) to invoke the statute of limitations under section
10726.6(c), it would effectively require “the District to win on the merits before the
statute of limitations applies.” We disagree. The District merely needs to show that it
adopted a groundwater fee in accordance with its delegated statutory authority and
followed the prescribed procedures. (See Padilla v. City of San Jose (2022) 78
Cal.App.5th 1073, 1078-1079 [analyzing whether a charge was “ ‘fixed pursuant to’ ”
Health & Saf. Code, div. 5, art. 4 to determine whether the mandatory prefiling procedure
in Health & Saf. Code, § 5472 applied to bar the plaintiffs’ claims]; KCSFV I, LLC v.
Florin County Water Dist., supra, 64 Cal.App.5th at pp. 1031-1033 [water district had to
prove the rate increase constituted a service charge within the meaning of Gov. Code,
§ 66022 in order for the statute of limitations under subd. (a) of that statute to apply].)
Such a requirement does not render the 180-day limitation meaningless or allow a
petitioner to circumvent the statute of limitations simply by alleging a fee violates section
10730(a), as the District contends. The requirement merely places the burden of proof
where it lies—with the defendant asserting an affirmative defense. A petitioner’s
allegation that a local government violated section 10730(a) does not allow a petitioner to
circumvent section 10726.6(c), if it applies.
In sum, we conclude that, because the District’s act of adopting the well
registration charge under section 10730(a) exceeded the scope of its authority and is void,
section 10726.6(c) does not apply. We nevertheless consider post whether the well
15
registration charge passes constitutional muster because the District argues, and Garst
does not appear to dispute, that the District also had authority under its principal act 11
(i.e., the legislation under which the District was formed) 12 and the memorandum of
understanding with the County to impose the well registration charge. We will assume
without deciding that the District adopted the well registration charge under such
delegated authority.
C. Garst Complied with the “Pay First, Litigate Later” Provision in Article XIII,
Section 32 and Did Not Have to Exhaust Any Other Administrative Remedy
The District argues Garst’s suit is barred because: (1) he did not establish that,
prior to filing litigation, he first paid the charge as required by article XIII, section 32, or
paid the charge under protest as required by section 10726.6(d); and (2) he did not file an
administrative claim as required by section 10726.6(d). We find no merit in these
contentions.
As explained ante, the District failed to prove that the provisions of
section 10726.6 apply because the District’s act of adopting the well registration charge
under section 10730(a) is void. Garst has further shown that he complied with the “pay
first, litigate later” requirement under article XIII, section 32. (State Water Resources
Control Bd. v. Superior Court, supra, 115 Cal.App.5th at pp. 773-774 [when a petitioner
attacks a charge as an invalid tax, it triggers the protection of art. XIII, § 32].) That
provision requires a taxpayer to pay the contested tax in full before initiating a suit.
(Water Replenishment Dist. of Southern California v. City of Cerritos (2013) 220
Cal.App.4th 1450, 1465.)
11 See Government Code section 56065.
12 The District’s principal act is located in Stats. 1957, ch. 1280, § 1, p. 2581 et seq.
(See Deering’s Ann. Wat.—Uncod. Acts (2025) Act 1360, § 1 et seq.)
16
Garst filed a declaration with supporting documentation showing he paid the well
registration charge in the first year (which the District does not dispute). The District
concedes that it waived the well registration charge for Garst in the second and third
years of the program based on his compliance with certain requirements and has
identified no well registration charge that remains outstanding and due for Garst to
maintain his lawsuit. Accordingly, the District has not shown that Garst failed to comply
with article XIII, section 32.
II
The Well Registration Charge Is Unconstitutional
The parties disagree as to whether the analytical framework of article XIII D
(Proposition 218) or article XIII C (Proposition 26) governs to determine the validity of
the well registration charge, assuming without deciding it was authorized under the
District’s principal act or the memorandum of understanding with the County. As we can
best surmise, the District argues the well registration charge must be analyzed under the
regulatory fee exception to a tax in article XIII C, section 1(e)(3) because it is not a fee or
charge for property-related service subject to Proposition 218. Garst, in contrast, argues
the well registration charge is unconstitutional under Proposition 218 because it was
imposed “as an incident of property ownership,” does not fall within the four exceptions
identified in article XIII D, section 3, subdivision (a), and was not appropriately
submitted to a vote, as required in article XIII D, section 6, subdivision (c).
We need not and thus do not resolve the parties’ disagreement as to the application
of articles XIII C or XIII D because, irrespective of which article applies, the well
registration charge was unconstitutionally imposed. 13 At bottom, for the well registration
charge to pass constitutional muster, it must either be a property-related service fee that
13 We note article XIII C incorporates the property-related service fee exception under
article XIII D, section 6, as an exception to a tax. (Art. XIII C, § 1, subd. (e)(7).)
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meets the requirements under article XIII D, section 6, or a regulatory fee within the
meaning of article XIII C, section 1(e)(3). The well registration charge qualifies as
neither.
A. Further Legal Background
“Under the California Constitution, as amended by a series of voter initiatives,
local government taxes, fees, charges, and other exactions are subject to several
requirements and restrictions.” (City of San Buenaventura v. United Water Conservation
Dist. (2017) 3 Cal.5th 1191, 1199 (City of San Buenaventura).) The first of these
initiatives was Proposition 13, passed by the voters in 1978, which added article XIII A
to the California Constitution. “Proposition 13 generally (1) limited the rate of any ad
valorem tax on real property to 1 percent; (2) limited increases in the assessed value of
real property to 2 percent annually absent a change in ownership; (3) required that ‘ “any
changes in State taxes enacted for the purpose of increasing revenues collected pursuant
thereto whether by increased rates or changes in methods of computation” ’ must be
approved by two-thirds of the Legislature; and (4) required that special taxes imposed by
cities, counties and special districts must be approved by a two-thirds vote of the
electors.” (Schmeer v. County of Los Angeles (2013) 213 Cal.App.4th 1310, 1317.)
“ ‘To prevent local governments from subverting its limitations, Proposition 13 also
prohibited counties, cities, and special districts from enacting any special tax without a
two-thirds vote of the electorate.’ ” (Apartment Assn. of Los Angeles County, Inc. v. City
of Los Angeles (2001) 24 Cal.4th 830, 836.)
“Courts uniformly held, however, that article XIII A … did not restrict local
governments’ ability to impose ‘legitimate special assessments’—that is, charges levied
on owners of real property directly benefited by a local improvement to defray its costs.
[Citation.] In part to close this perceived loophole, voters in 1996 passed Proposition
218, which, among other things, ‘ “buttresse[d] Proposition 13’s limitations on ad
valorem property taxes and special taxes by placing analogous restrictions on
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assessments, fees, and charges.” ’ ” (City of San Buenaventura, supra, 3 Cal.5th at
pp. 1199-1200.) Proposition 218 added articles XIII C and XIII D to the California
Constitution.
Under article XIII D, section 3, only four types of local property taxes,
assessments, fees, or charges are allowed if they are assessed “upon any parcel of
property or upon any person as an incident of property ownership” and meet specified
substantive and procedural restrictions: (1) an ad valorem property tax imposed under
article XIII and article XIII A; (2) a special tax receiving a two-thirds vote under section
4 of article XIII A; (3) an assessment imposed under Proposition 218; and (4) a property-
related service fee or charge imposed under Proposition 218. (Art. XIII D, §§ 3, subd.
(a), 4 [procedures and requirements pertaining to assessm