No CEQA Review Required For Initiative Measures, Whether Adopted By City Council Or Voters

Tuolumne Jobs & Small Business Alliance v. Wal-Mart Stores, Inc., et al. (8/7/14, S207173)

The Supreme Court of California has held that CEQA review was not required before the Sonora City Council adopted an initiative measure approving a specific plan for expansion of a Wal-Mart store. The court held that: (1) the Elections Code, which requires at most an abbreviated review, provides the exclusive process regarding voter initiatives, (2) the legislative body does not have to obtain full CEQA review before it can directly adopt a voter initiative, and (3) a full CEQA review would be incompatible with the requirements of the Elections Code. The court's conclusion highlights the judiciary's staunch protection of the initiative process.

In 2007, Wal-Mart sought to expand an existing Wal‑Mart store in the City into a new Wal-Mart Supercenter. In December 2009, the City circulated a draft environmental impact report for public comment, and the City Planning Commission unanimously recommended that the project be approved. Before the project was put up for a vote, the City Council was served with a notice of intent to circulate an initiative petition. This "Wal-Mart Initiative" proposed a specific expansion plan and was ultimately signed by over 20% of the City's registered voters.

When an initiative petition meets the requirements of Elections Code Section 9214, the recipient city council must either: (1) adopt the initiative without alteration, (2) submit it to a special election, or (3) order an abbreviated report on the initiative pursuant to Elections Code Section 9212. Within 10 days of receipt of the report, the city council must either adopt the ordinance without alteration or submit it to the electorate in a special election.

On September 20, 2010, the Council ordered a Section 9212 report to examine the Wal-Mart Initiative's consistency with the previously approved plans for the expansion. At its next meeting, the Council considered the Section 9212 report, and after weighing the countervailing arguments, adopted the ordinance.

Petitioner Tuolumne Jobs & Small Business Alliance ("TJSBA") sought a writ of mandate, asserting, among other things, that the Council violated CEQA when it adopted the ordinance without first conducting a complete environmental review. TJSBA received a favorable ruling in the Court of Appeals, which held that CEQA review was required if a city council adopted an ordinance rather than submitting it to election...