FILED 1 2020 JAN 31 11:22 AM KING COUNTY SUPERIOR COURT CLERK E-FILED CASE #: 19-2-30171-6 SEA 2 3 4 5 6 The Honorable Marshall Ferguson February 7, 2020, at 9:00 a.m. With Oral Argument STATE OF WASHINGTON KING COUNTY SUPERIOR COURT 7 8 9 10 GARFIELD COUNTY TRANSPORTATION AUTHORITY; et al., 13 14 and WASHINGTON ADAPT; TRANSIT RIDERS UNION; and CLIMATE SOLUTIONS, Intervenor-Plaintiffs, 15 16 v. 17 STATE OF WASHINGTON, 18 Defendant, 19 20 21 22 23 DEFENDANT STATE OF WASHINGTON AND INTERVENOR-DEFENDANT PIERCE COUNTY’S COMBINED REPLY IN SUPPORT OF THEIR MOTION FOR SUMMARY JUDGMENT Plaintiffs, 11 12 NO. 19-2-30171-6 SEA and CLINT DIDIER; PERMANENT OFFENSE; TIMOTHY D. EYMAN; MICHAEL FAGAN; JACK FAGAN; and PIERCE COUNTY, Intervenor-Defendants. 24 25 26 STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA i ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 I. 1 INTRODUCTION 2 Plaintiffs’ response brief highlights their twisting of I-976’s language and ballot title to 3 render it unconstitutional. For example, Plaintiffs claim I-976’s parts lack rational unity because 4 the initiative’s subject is supposedly “capping recurring motor vehicle charges at the time of 5 registration.” Pls.’ Opp’n at 3. But I-976’s topic, expressed in its title, is “motor vehicle taxes 6 and fees.” Similarly, in attacking I-976’s title, Plaintiffs claim that the $30 limit mentioned there 7 and in I-976’s text “refers to any annual payment that a vehicle owner must make to register a 8 motor vehicle.” Id. at 8. But that language appears nowhere in I-976 and that reading of the 9 measure and title is incorrect. 10 This Court’s duty is to reject Plaintiffs’ distortions and instead, wherever possible, read 11 I-976 so as to preserve its constitutionality. Wash. Fed’n of State Emps. v. State, 127 Wn.2d 544, 12 556, 901 P.2d 1028 (1995) (WFSE). Exercising that duty, the Court should uphold I-976. II. 13 14 A. ARGUMENT Article II, Section 19 – Subject-in-Title Requirement 15 Plaintiffs’ arguments regarding article II, section 19’s subject-in-title requirement 16 continue to rest on misreading the title. Defendants have repeatedly explained how the two 17 clauses in I-976’s title are distinct, and how the references to a $30 limit and voter-approved 18 charges are found in and apply only to the second clause. WA PI Opp’n (PI Opp’n) at 19-21; 19 Defs.’ MSJ at 14-16; Defs.’ MSJ Opp’n (Defs.’ Opp’n) at 2-4. Defendants have explained how 20 the second clause refers only to “motor-vehicle-license fees,” a subset of the “vehicle taxes and 21 fees” referenced in the first clause that is constitutionally distinct under Washington 22 Constitution, article II, section 40. PI Opp’n at 21 n.3; Defs.’ Opp’n at 3. Defendants have 23 explained why the definition of “state and local motor vehicle license fees” in I-976, section 2(2) 24 excludes taxes like MVETs and local TBD fees used for local transit purposes, which cannot 25 constitutionally be understood to be “vehicle license fees.” PI Opp’n at 21 n.3; Defs.’ MSJ at 16; 26 Defs.’ Opp’n at 3. Indeed, Plaintiffs have never explained how their use of MVETs and TBD STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 1 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 fees for non-highway purposes could be constitutional if those charges are “motor-vehicle- 2 license fees.” And Defendants have explained how the ancillary fees charged under RCW 46.17, 3 which make total state charges for car tabs exceed $30, are not “vehicle license fees.” Defs.’ 4 MSJ at 15-16; Defs.’ Opp’n at 3-4. 5 Defendants have refuted every argument Plaintiffs raise in their subject-in-title 6 challenge. And even if the Court had doubt about the meaning of terms in I-976 or its title, it 7 must construe the language in favor of the Initiative’s constitutionality. WFSE, 127 Wn.2d at 8 556; Pierce Cty. v. State, 150 Wn.2d 422, 436, 78 P.3d 640 (2003). Plaintiffs have not met their 9 burden of demonstrating beyond a reasonable doubt that I-976 violates the subject-in-title 10 requirement. 11 B. Article II, Section 19 – Single Subject Requirement 12 Plaintiffs purport to identify seven “disparate” subjects in I-976, which they claim defeats 13 rational unity. Defendants already explained why Plaintiffs’ tactic conflicts with the liberal 14 interpretation used in assessing whether the topics in an initiative have rational unity. Defs.’ 15 Opp’n at 5 (citing Filo Foods, LLC v. City of SeaTac, 183 Wn.2d 770, 784, 357 P.3d 1040 16 (2015)). Defendants also explained how even the cases Plaintiffs cite do not apply the narrow 17 germaneness test they extract from City of Burien v. Kiga, 144 Wn.2d 819, 825, 31 P.3d 659 18 (2001), relying instead on the interactions between provisions to find rational unity. Defs.’ Opp’n 19 at 5-6. 20 Indeed, if Plaintiffs’ narrow approach were correct, neither the People nor the Legislature 21 could adopt any meaningful comprehensive legislation, because challengers could always find 22 ways to claim a lack of relationship among some parts of comprehensive measures. Measures 23 like I-276 (adopting campaign finance reform, regulation of lobbyists, reporting requirements 24 for elected officials, and public records laws) and I-1183 (privatizing distribution and sales of 25 spirits and wine, establishing new taxes and fees on producers and distributors, and creating a 26 public safety fund) would have been overturned. But those measures were upheld in singleSTATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 2 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 subject challenges under article II, section 19. See Fritz v. Gorton, 83 Wn.2d 275, 289-91, 517 2 P.2d 911 (1974) (upholding I-276); Wash. Ass’n for Substance Abuse & Violence Prevention v. 3 State, 174 Wn.2d 642, 654-60, 278 P.3d 632 (2012) (upholding I-1183). Defendants have shown 4 how the incidental subjects in I-976 are rationally related to its general title and to one another, 5 Defs.’ Opp’n at 5-8, and Plaintiffs have not demonstrated beyond a reasonable doubt how I-976 6 is so different from initiatives like I-276 and I-1183 as to violate the single-subject requirement. 7 C. Article II, Section 37 8 I-976 fully complies with article II, section 37. Defs.’ MSJ at 16-20; Defs.’ Opp’n at 9 8-10. Defendants rely on their existing briefing except to correct the following errors by 10 Plaintiffs. 11 Plaintiffs incorrectly assert that RCW 36.73.040 and .065 “independently and 12 affirmatively authorize TBDs to impose and collect” vehicle fees. Pls.’ Opp’n at 11. Those 13 statutes both identify RCW 82.80.140 as the source of authority. Plaintiffs’ contention that 14 RCW 36.73.065(6) “authorizes voter-approved VLFs” is wrong. That subsection addresses the 15 process for voter approval of TBD vehicle fees; it does not itself authorize such fees. 16 The additional materials Plaintiffs cite do not support their argument. Plaintiffs rely on a 17 court filing in a ballot title challenge and a newspaper article quoting the initiative sponsor and 18 a Department of Licensing spokesperson. Pls.’ Opp’n at 15. Each source confirms that additional 19 fees in RCW 46.17 apply or could apply. Courts must interpret statutes so as to render them 20 constitutional. State v. Watkins, 191 Wn.2d 530, 535, 423 P.3d 830 (2018). Even if I-976 were 21 ambiguous, it should be interpreted to avoid an article II, section 37 violation. I-976 does not 22 impact any fees in RCW 46.17 except those expressly mentioned. 23 D. Article VII, Section 5 24 As Defendants previously explained, Defs.’ Opp’n at 15-17, I-976 does not run afoul of 25 article VII, section 5. Plaintiffs’ recitation of Sheldon v. Purdy, 17 Wash. 135, 49 P. 228 (1897) 26 does not alter this conclusion. In Purdy, all relevant parties were before the court and there were STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 3 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 no factual issues as to how bondholders’ debt would be paid (i.e., which taxes would have to be 2 diverted to pay the bond coupons). Here, by contrast, Plaintiffs are claiming that section 12 of 3 I-976 would improperly divert Sound Transit’s MVET revenue through potential bond 4 defeasement even though Sound Transit is not a party to this action, Sound Transit’s bond 5 contracts are not before the Court, Sound Transit has not asserted that its bonds can be defeased, 6 the MVET provides only 12% of Sound Transit’s revenue (Copsey Reply Decl., Ex. A at 10), 7 and there has been no discovery as to which revenue streams could be used to defease Sound 8 Transit’s bonds (including Sound Transit’s $600 million “unrestricted cash balance,” id.). 9 Therefore, any claims of tax diversion related to Sound Transit are speculative at this juncture 10 and should be dismissed. See Snohomish Cty. v. Anderson, 124 Wn.2d 834, 840, 881 P.2d 240 11 (1994) (affirming dismissal of statutory challenge where particular provisions had not been 12 implemented and claim was speculative). Nor should Plaintiffs be permitted to litigate this issue 13 on Sound Transit’s behalf. Cf. id. (recognizing other parties were “in a better position to litigate 14 these issues”). 15 E. Article XI, Section 12 Plaintiffs’ article XI, section 12 “vesting” argument fails for the reasons explained in 16 17 Defs.’ Opp’n at 10-12 and Pierce Cty.’s Resp. at 1-4. 18 F. Article I, Section 19 19 Plaintiffs’ argument related to article I, section 19 consists of three incorrect contentions. 20 First, I-976 does not “retroactively interfer[e]” with Seattle TBD’s 2014 election. Pls.’ 21 Opp’n at 17. I-976 operates only prospectively and has no effect on anyone’s “free exercise of 22 the right of suffrage” in the 2014 election. Wash. Const., art I, § 19. 23 24 25 26 Second, I-976 did not involve interference by “outside voters.” In approving I-976, statewide voters addressed a question of state law. Third, Seattle TBD voters had a meaningful opportunity to vote on the authority of TBDs under Washington law because they could vote on I-976 just like other Washington voters. STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 4 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 G. Separation of Powers 2 In their opposition to Defendants’ MSJ, Plaintiffs rely heavily on Ruano v. Spellman, 3 81 Wn.2d 820, 505 P.2d 447 (1973), and City of Port Angeles v. Our Water-Our Choice!, 4 170 Wn.2d 1, 239 P.3d 589 (2010), to argue that state initiative power cannot intrude on local 5 administrative decisions. But Ruano, like the cases Plaintiffs previously cited, involved a local 6 initiative and did not discuss limitations on state initiative power. Ruano does not even cite article 7 II, section 1. Port Angeles cites article II, section 1 only to observe that it does not apply to local 8 initiatives. 170 Wn.2d at 8. 9 In any event, I-976 does not purport to administer the law. It is a legislative act as defined 10 in Ruano, because it enacts “new law or policy” that changes the taxing authority legislatively 11 granted to certain municipal corporations. 12 Plaintiffs also suggest there must be a difference between a contingency that allows an 13 entire statute to take effect and one that allows only a specified portion to take effect, but they 14 don’t identify the legal significance of any such difference. Instead, they simply repeat their 15 assertion that I-976 section 16 unconstitutionally delegates legislative authority. Defendants 16 have fully answered that assertion. Defs.’ MSJ at 22; Defs.’ Opp’n at 18. 17 H. Impairment of Contracts 18 The “heavy burden” of proving I-976 unconstitutional rests on Plaintiffs, Amalgamated 19 Transit Union Local 587 v. State, 142 Wn.2d 183, 205, 11 P.3d 762 (2000), yet Plaintiffs ask 20 this Court on summary judgment not only to resolve disputed facts about bonds issued by Burien, 21 but to extend its holding to cities who are not parties to this case and whose bond documents are 22 not before the Court. Pls.’ Opp’n at 24. The Court should refuse. Plaintiffs’ contention that the 23 State’s argument is somehow contrary to the stipulated briefing schedule makes no sense: as 24 Defendants previously explained, Defs.’ Opp’n at 20, the City of Burien was added to this action 25 after the parties’ MSJ schedule was issued. And although Defendants received some (but not all) 26 of the documents that Plaintiffs relied upon in their MSJ during the week the parties’ MSJs were STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 5 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 due, there has been no formal discovery on this issue. Summary judgment on this issue is 2 premature. 3 4 5 6 III. CONCLUSION For the foregoing reasons, Defendants’ MSJ should be granted and Plaintiffs and Intervenor-Plaintiffs’ MSJs should be denied. DATED this 31st day of January, 2020. 7 ROBERT W. FERGUSON Attorney General 8 /s/Alan D. Copsey ALAN D. COPSEY, WSBA #23305 ALICIA YOUNG, WSBA #35553 KARL SMITH, WSBA #41988 Deputy Solicitors General LAURYN K. FRAAS, WSBA #53238 Assistant Attorney General Attorneys for Defendant State of Washington 9 10 11 12 13 MARY ROBNETT Prosecuting Attorney 14 15 /s/Daniel R. Hamilton DANIEL R. HAMILTON, WSBA #14658 FRANK A. CORNELIUS, WSBA #29590 Pierce County Prosecutor/Civil Attorneys for Intervenor-Defendant Pierce County 16 17 18 We certify that this memorandum contains 1748 words, in compliance with the Local Civil Rules. 19 20 21 22 23 24 25 26 STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 6 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 CERTIFICATE OF SERVICE 1 2 I hereby declare that on this day true copies of the foregoing document were served via 3 CM/ECF and by email upon the following parties: 4 Contacts for Plaintiff King County: 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Name, Title: David J. Hackett, Attorney David J. Eldred, Attorney Jenifer Merkel, Attorney Erin B. Jackson, Attorney Email: David.hackett@kingcounty.gov David.eldred@kingcounty.gov Jenifer.merkel@kingcounty.gov Erin.Jackson@kingcounty.gov Contacts for Plaintiff City of Seattle: Name, Title: Carolyn U. Boies, Attorney Erica Franklin, Attorney John B. Schochet, Attorney Marisa Johnson, Legal Assistant Email: Carolyn.boies@seattle.gov Erica.franklin@seattle.gov John.schochet@seattle.gov Marisa.Johnson@seattle.gov Contacts for Plaintiffs Washington State Transit Association, Association of Washington Cities, Port of Seattle, Garfield County Transportation Authority, Intercity Transit, Amalgamated Transit Union Legislative Council of Washington, and Michael Rogers: Name, Title: Paul J. Lawrence, Attorney Matthew J. Segal, Attorney Jessica A. Skelton, Attorney Shae Blood, Attorney Sydney Henderson, Legal Assistant Email: paul.lawrence@pacificalawgroup.com matthew.segal@pacificalawgroup.com jessica.skelton@pacificalawgroup.com shae.blood@pacificalawgroup.com sydney.henderson@pacificalawgroup.com Contact for Plaintiff-Intervenors Washington ADAPT, Transit Riders Union, and Climate Solutions: Name, Title: Knoll Lowney, Attorney Email: knoll@smithandlowney.com Contact for Intervenors Permanent Offense, Timothy Donald Eyman, Jack Fagan, and Michael Fagan: Name, Title: Mark D. Kimball, Attorney Email: mkimball@mdklaw.com 26 STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 7 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200 1 2 Contact for Intervenor Clint Didier: Name, Title: Stephen W. Pidgeon, Attorney Email: Stephen.pidgeon@comcast.net 3 4 DATED this 31st day of January, 2020, at Seattle, Washington. 5 s/Morgan Mills MORGAN MILLS Legal Assistant 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 STATE OF WASHINGTON AND PIERCE COUNTY’S COMBINED REPLY BRIEF NO. 19-2-30171-6 SEA 8 ATTORNEY GENERAL OF WASHINGTON Solicitor General’s Office P.O. Box 40100 Olympia, WA 98504-0100 (360) 753-6200