No. _______ IN THE SUPREME COURT OF THE STATE OF WASHINGTON GARFIELD COUNTY TRANSPORTATION AUTHORITY; et al. Appellants, WASHINGTON ADAPT; TRANSIT RIDERS UNION; and CLIMATE SOLUTIONS, Intervenor-Plaintiffs, v. STATE OF WASHINGTON, Defendant, CLINT DIDIER; PERMANENT OFFENSE; TIMOTHY D. EYMAN; MICHAEL FAGAN; JACK FAGAN; and PIERCE COUNTY, Intervenor-Defendants. APPELLANTS’ EMERGENCY MOTION FOR STAY PENDING REVIEW DANIEL T. SATTERBERG King County Prosecuting Attorney David J. Hackett, WSBA #21236 David J. Eldred, WSBA #26125 Jenifer Merkel, WSBA #34472 Erin B. Jackson, WSBA #49627 500 Fourth Avenue Seattle, WA 98104 PETER S. HOLMES Seattle City Attorney Carolyn U. Boies, WSBA#40395 Erica Franklin, WSBA#43477 John B. Schochet, WSBA#35869 701 5th Avenue, Suite 2050 Seattle, WA 98104 PACIFICA LAW GROUP LLP Paul J. Lawrence, WSBA #13557 Matthew J. Segal, WSBA #29797 Jessica A. Skelton, WSBA #36748 1191 Second Avenue, Suite 2000 Seattle, WA 98101 i 20284 00002 jc239w07fb.002 TABLE OF CONTENTS I. INTRODUCTION ....................................................................... 1 II. IDENTITY OF MOVING PARTIES ......................................... 3 III. STATEMENT OF RELIEF SOUGHT ....................................... 3 IV. FACTS RELEVANT TO MOTION ........................................... 4 A. I-976 Purports to Cap Car Tab Fees at $30, But Neither Achieves that Result Nor Limits Its Reach to that Subject. ........ 4 B. The Trial Court Grants Preliminary Injunctive Relief, But Later Reverses that Decision. ...................................................... 7 C. Appellants Will Suffer Irreparable Harm If I-976 Is Implemented. ............................................................................. 11 V. GROUNDS FOR RELIEF ........................................................ 14 A. This Court May Stay Trial Court Decisions Pending Appeal. ...................................................................................... 14 B. The Issues Presented on Appeal Are, at a Minimum, Debatable. .................................................................................. 15 1. I-976’s Ballot Title Violates Article II, Section 19’s Subject in Title Requirement. .................................................... 17 2. Sections 8 and 9 of I-976 Violate Article I, Section 12 By Requiring Use of KBB Valuation, and Are Not Severable........ 19 3. I-976 Violates the Single Subject Rule. ..................................... 21 4. I-976 Unconstitutionally Amends Existing Law Under Article II, Section 37. ................................................................. 24 5. I-976 Unconstitutionally Infringes on Local Control. ................ 27 C. The Comparative Harms of a Stay Pending Appeal Vastly Favor Appellants. ...................................................................... 29 D. A Stay Pending Appeal Is Necessary to Preserve the Fruits of this Appeal and Preserve the Status Quo. ............................. 33 ii 20284 00002 jc239w07fb.002 VI. CONCLUSION ......................................................................... 34 iii 20284 00002 jc239w07fb.002 TABLE OF AUTHORITIES Washington State Cases Amalgamated Transit Union Local 587 v. State, 142 Wn.2d 183, 11 P.3d 762 (2000) .............................................. passim Black v. Cent. Puget Sound Reg’l Transit Auth., -- Wn.2d --, 457 P.3d 453 (2020)................................................... passim Boeing Co. v. Sierracin Corp., 43 Wn. App. 288, 716 P.2d 956 (1986) ................................................ 33 Burien Cmtys. for Inclusion v. Respect Wash., No. 77500-6-I, 2019 WL 4262081 (Wash. Ct. App. Sept. 9, 2019) ..... 34 Citizens for Responsible Wildlife Mgmt. v. State, 149 Wn.2d 622, 71 P.3d 644 (2003) ..................................................... 20 City of Burien v. Kiga, 144 Wn.2d 819, 31 P.3d 659 (2001) ......................................... 21, 23, 24 City of Seattle v. State, 103 Wn.2d 663, 694 P.2d 641 (1985) ................................................... 28 City of Seattle v. Yes for Seattle, 122 Wn. App. 382, 93 P.3d 176 (2004) ................................................ 21 El Centro De La Raza v. State, 192 Wn.2d 103, 428 P.3d 1143 (2018) ........................................... 24, 26 Gen. Tel. Co. of the Nw., Inc. v. Wash. Utils. & Transp. Comm’n, 104 Wn.2d 460, 706 P.2d 625 (1985) ................................................... 34 Gold Bar Citizens for Good Gov’t v. Whalen, 99 Wn.2d 724, 665 P.2d 393 (1983) ..................................................... 28 Howlett v. Cheetham, 17 Wash. 626, 50 P. 522 (1897)............................................................ 17 iv 20284 00002 jc239w07fb.002 Kennett v. Levine, 49 Wn.2d 605, 304 P.2d 682 (1956) ............................................... 15, 33 Larson v. Seattle Popular Monorail Auth., 156 Wn.2d 752, 131 P.3d 892 (2006) ................................................... 27 League of Educ. Voters v. State, 176 Wn.2d 808, 295 P.3d 743 (2013) ................................................... 23 League of Women Voters of Wash. v. State, 184 Wn.2d 393, 355 P.3d 1131 (2015) ................................................. 20 Lee v. State, 185 Wn.2d 608, 374 P.3d 157 (2016) ............................................. 21, 23 Moreman v. Butcher, 126 Wn.2d 36, 891 P.2d 725 (1995) ............................................... 14, 15 Pierce Cty. v. State, 150 Wn.2d 422, 78 P.3d 640 (2003) ............................................... 22, 28 Purser v. Rahm, 104 Wn.2d 159, 702 P.2d 1196 (1985) ........................................... 15, 33 Shamley v. Olympia, 47 Wn.2d 124, 286 P.2d 702 (1955) ..................................................... 33 State ex. rel. Pay Less Drug Stores v. Sutton, 2 Wn.2d 523, 98 P.2d 680 (1940) ......................................................... 34 State v. Redd, 166 Wash. 132, 6 P.2d 619 (1932)........................................................ 27 State v. Thorne, 129 Wn.2d 736, 921 P.2d 514 (1996) ............................................. 25, 26 Wash. Ass’n for Substance Abuse & Violence Prevention v. State, 174 Wn.2d 642, 278 P.3d 632 (2012) ................................................... 17 Wash. Citizens Action of Wash. v. State, 162 Wn.2d 142, 171 P.3d 486 (2007) ................................................... 20 v 20284 00002 jc239w07fb.002 Wash. Fed’n of State Emps. v. State, 99 Wn.2d 878, 665 P.2d 1337 (1983) ................................................... 15 Wash. Toll Bridge Auth. v. State, 49 Wn.2d 520, 304 P.2d 676 (1956) ..................................................... 21 Constitutional Provisions Const. art. I, § 19 ................................................................................ 28, 29 Const. art. I, § 12 ............................................................................ 9, 10, 19 Const. art. I, § 23 ................................................................................... 9, 11 Const. art. II, § 19 .......................................................... 8, 9, 17, 18, 20, 21 Const. art. II, § 37 ........................................................................ 24, 25, 26 Const. art. XI, § 12 ............................................................................. 27, 28 Washington State Statutes RCW 36.73.040 .................................................................................... 6, 26 RCW 4.68.010 .......................................................................................... 32 RCW 46.17.323 .......................................................................................... 5 RCW 46.68.010 ........................................................................................ 32 RCW 47.66.070 .......................................................................................... 5 RCW 81.104.160 ................................................................................ 24, 25 RCW 82.80.130 .......................................................................................... 6 RCW 82.80.140 .................................................................................... 6, 26 Title 82 RCW ............................................................................................ 32 vi 20284 00002 jc239w07fb.002 Washington State Rules CR 54(b).............................................................................................. 11, 16 RAP 2.2 ..................................................................................................... 16 RAP 2.3 ..................................................................................................... 16 RAP 8.1(b)(3) ......................................................................... 14, 15, 29, 32 RAP 8.3 ......................................................................................... 14, 15, 33 RAP 17.4(b) ................................................................................................ 4 vii 20284 00002 jc239w07fb.002 I. INTRODUCTION All laws, whether adopted by the people or the Legislature, must comport with our state Constitution. At issue in this appeal is whether Initiative 976 (“I-976”) violates multiple provisions of the Constitution. Appellants respectfully request that this Court maintain, through appellate review, the injunction against implementation of I-976 that has been in place since November 2019. The issues raised on appeal are (at least) debatable, Appellants would suffer substantial harm absent relief, and the fruits of this appeal would be lost without a stay. The injunction against implementation of I-976 is currently set to expire on March 27, 2020. 1 There can be little dispute that the issues raised here are debatable. In issuing the preliminary injunction against implementation of I-976, the trial court found that Appellants were likely to prevail on the merits. Respondent State of Washington (“State”) asserted debatable issues when it attempted to set aside the preliminary injunction—an effort rejected by a majority of this Court. The trial court’s ultimate decision, which flips its own prior reasoning, further demonstrates debatable issues. Indeed, the severance of two unconstitutional sections of I-976 despite their inclusion in the ballot title is, by itself, highly debatable. The briefing below 1 Appellants have asked the trial court to extend this date in order to allow this Court sufficient time to decide the question of a stay pending appeal based on orderly briefing from the parties. See App. at 1484-91. 1 20284 00002 jc239w07fb.002 demonstrates broad constitutional concerns with I-976 that meet the debatable issue standard. The trial court found at both the preliminary injunction stage and on summary judgment that implementation of I-976 would result in actual and substantial injury to Appellants. Tens if not hundreds of millions of dollars that would be collected under the status quo pre-dating I-976 will be irretrievably lost—a point the State has never disputed. Simply put, absent a stay, there is no ability to collect taxes and fees lost pending appeal. The lost revenue will cause damage to local transportation and transit infrastructure statewide from King County Metro service to Spokane street improvement projects, exacerbating the impact on local governments from the COVID-19 crisis. In contrast, if I-976 is ultimately upheld, refunds can be issued through an established statutory procedure. Preventing harms caused by an unconstitutional measure is the point of Appellants’ appeal, which can be expedited to assure timely resolution. Finally, in conducting this balance, substantial consideration must be given to whether granting the stay is necessary to preserve the fruits of an appeal that would otherwise be lost pending review. Indeed, maintaining the status quo ante is the primary function of a stay. Appellants would lose the fruits of their appeal if a stay is denied, 2 20284 00002 jc239w07fb.002 primarily because revenue foregone in the absence of an injunction can never be recovered. Appellants meet the standard for an emergency stay of implementation of I-976. Their motion should be granted. II. IDENTITY OF MOVING PARTIES This Motion is filed by Appellants Garfield County Transportation Authority, Washington State Transit Association, King County, Association of Washington Cities, City of Seattle, Port of Seattle, Intercity Transit, Amalgamated Transit Union Legislative Council of Washington, City of Burien, Michael Rogers, and Justin Camarata (collectively, “Appellants”), plaintiffs in the trial court action below. III. STATEMENT OF RELIEF SOUGHT Pursuant to the trial court’s order dated March 12, 2020, the decision vacating the preliminary injunction against implementation of I976 in part will take effect on March 27, 2020 absent further relief. Because (1) this appeal presents at least debatable issues spanning multiple constitutional violations, (2) the harm to Appellants in permitting I-976 to take effect far outweighs the harm to the State in staying its implementation pending this Court’s review, and (3) a stay is necessary to preserve the fruits of Appellants’ appeal, including multiple revenue streams that once lost cannot be recovered, Appellants respectfully request 3 20284 00002 jc239w07fb.002 that this Court stay implementation of the trial court’s reconsideration order and maintain the injunction precluding I-976 from taking effect for the duration of the appeal. 2 IV. A. FACTS RELEVANT TO MOTION I-976 Purports to Cap Car Tab Fees at $30, But Neither Achieves that Result Nor Limits Its Reach to that Subject. The self-proclaimed title of I-976 is “Bring Back Our $30 Car Tabs,” with a stated purpose to “limit state and local taxes, fees, and other charges relating to motor vehicles.” App. at 273-74. As the State admits, however, I-976 does not create “$30 Car Tabs,” but actually results in a car tab fee of at least $43.25 and often much higher. App. at 436, 447, 1676-82, 1686-90. Moreover, I-976 contains numerous other provisions unrelated to “$30 Car Tabs.” First, I-976 limits car tab fees by reducing or repealing multiple fees and taxes, but the net result is not a $30 vehicle license fee. It adds a new section to chapter 46.17 RCW that imposes a hard $30 cap on “state and local motor vehicle license fees,” defined as “the general license tab fees paid annually for licensing motor vehicles.” App. at 274. I-976 sets the vehicle license fee in chapter 46.17 RCW at $30 for many vehicles. 2 Pursuant to RAP 17.4(b), Appellants provided notice to Respondents and other parties of their intention to file this Motion. See RAP 17.4(b) Declaration of David J. Hackett, ¶¶ 2-3 & Exs. A-B. 4 20284 00002 jc239w07fb.002 Id. at 274-81. In addition to limiting the vehicle license fee to $30, I-976 eliminates the electric vehicle mitigation fee established by RCW 46.17.323, and the vehicle weight fee and related statutes that authorized rulemaking for vehicle weight determination. Id. at 281-82. But I-976 leaves in place a number of other fees paid at the time of vehicle registration which results in a minimum vehicle license fee of $43.25. In addition to reducing license fees, I-976 eliminates an additional sales tax on vehicle sales that is unrelated to the cost of registration or renewal and administered by an entirely different state agency (the Department of Revenue, not the Department of Licensing). App. at 283. And it also attempts to change the valuation schedule used only in calculating the Sound Transit MVET (requiring use of Kelley Blue Book (“KBB”) valuation, although the trial court struck these provisions). Id. at 283-84. Finally, I-976 repeals and/or limits Sound Transit’s authority to impose future MVETs. Id. at 284-87. Many of the vehicle-related fees reduced or eliminated by I-976 were used to fund the State Multimodal Account, which provides support for a variety of local transportation projects and programs that would otherwise go unfunded. See RCW 47.66.070; App. at 121-24, 305-20. Second, despite a ballot title stating that the initiative preserves “voter-approved charges,” App. at 292, I-976 in fact repeals all current 5 20284 00002 jc239w07fb.002 authority for voter-approved charges. It repeals RCW 82.80.130, which authorized a voter-approved MVET for passenger ferry service. App. at 282. It also repeals RCW 82.80.140, which authorized local transportation benefit districts (“TBDs”) to impose vehicle license fees (“VLFs”). Id. Prior to I-976, TBD governing bodies had authority to enact VLFs up to $50, while local voter-approved charges could bring the total up to $100. See RCW 82.80.140; RCW 36.73.040, .065. More than sixty TBDs throughout Washington utilize local TBD authority to impose and collect VLFs ranging from $20 to $80 per vehicle registration, providing these localities with millions of dollars in revenues used to fund vital local transportation improvement projects. See App. at 103, 1093. For example, the Vancouver TBD’s $40 VLF generates approximately $5 million annually for transportation improvement projects and local matches for transportation grants. App. at 1132-33. The Spokane TBD collects a $20 VLF that provides approximately $3 million annually for residential street improvements and pedestrian projects. App. at 1154-56. And the City of Seattle imposed a $20 VLF until 2014, when Seattle voters overwhelmingly approved a $60 increase, with much of the voter-approved portion used to “fund Metro Transit service.” App. at 220, 225-33; see also Declaration of Jenny A. Durkan (“Durkan Decl.”), ¶ 2. With almost $24 million per year of this revenue, 6 20284 00002 jc239w07fb.002 Seattle contracted with King County’s Metro Transit Department (“Metro”) to provide 350,000 additional service hours in the greater Seattle area. See App. at 33, 220-21; see also Declaration of Rob Gannon (“Gannon Decl.”), ¶ 11 & Ex. 1. I-976 entirely eliminates authority for VLFs, voter-approved or otherwise, and does not leave voters with a means to impose these fees in the future. See App. at 282. Third, I-976 addresses Sound Transit’s bonds. App. at 288. Contrary to an implied goal of less government spending, I-976 purports to require that Sound Transit retire, defease, or refinance outstanding bonds, which would necessitate Sound Transit raising significant new taxes and incurring additional, new debt. See App. at 615-18. Finally, I-976 sets forth effective dates that depend on Sound Transit discretionary debt management decisions. See App. at 290. B. The Trial Court Grants Preliminary Injunctive Relief, But Later Reverses that Decision. Appellants filed a complaint for declaratory and injunctive relief on November 14, 2019. App. at 1-23. They moved for a preliminary injunction on November 18 to enjoin implementation of I-976 pending a full and fair consideration of its constitutionality. App. at 353-96. On November 27, the trial court granted Appellants’ motion and stayed implementation of I-976 until further order of the court. App. at 526-33. 7 20284 00002 jc239w07fb.002 The court concluded that Appellants had demonstrated they were likely to prevail on at least their constitutional challenge to I-976 based on article II, section 19’s subject in title requirement. App. at 530. The court also concluded that implementation of I-976 would result in actual and substantial injury to Appellants. App. at 527-28, 531-32. Following the trial court’s ruling, the State filed in this Court a notice of direct discretionary review and an emergency motion to stay the trial court’s injunction pending review, which this Court denied on December 4, 2019 through an en banc order, with three justices dissenting. App. at 1492-95, 1504-24, 1655-58. The State’s discretionary review proceeding in this Court was dismissed on December 23, 2019. App. at 1659-60. Recognizing the importance of speedy resolution, the parties agreed to an expedited summary judgment proceeding. In early January 2020, the parties filed cross-motions for summary judgment as to I-976’s constitutionality. App. at 559-78, 579-610, 1181-1247. Appellants’ motion for summary judgment raised multiple constitutional arguments and requested a permanent injunction precluding I-976 from taking effect. App. at 1181-1247. On February 12, 2020, the trial court denied Appellants’ motion for summary judgment in part and declined to enter a permanent injunction. App. at 1328-62. Based on the undisputed fact record, the 8 20284 00002 jc239w07fb.002 Court determined that Appellants established that if I-976 were to be implemented, it would result in “actual and substantial injury” to Appellants, including “drastic reductions in funding for public transit, road and highway improvement projects, ferry service, and projects that are critical from a public safety standpoint.” App. at 1335-36. But the court denied the majority of Appellants’ constitutional challenges, retaining only Appellants’ claims under article I, sections 12 and 23 of the Constitution for future resolution “after pertinent discovery is accomplished.” 3 App. at 1358-61. The court concluded that, since the order did not dispose of all of Appellants’ constitutional challenges to I976, the preliminary injunction would remain in effect. App. at 1361-62. The State, Appellants, and Didier moved for reconsideration of multiple aspects of the trial court’s ruling. App. at 1363-69, 1370-97, 1398-1409. Appellants narrowly focused reconsideration on their article II, section 37 claim given recent dispositive authority from this Court in Black v. Cent. Puget Sound Reg’l Transit Auth., -- Wn.2d --, 457 P.3d 453 (2020), issued the day after the trial court’s summary judgment ruling. App. at 1371, 1373-75. Appellants also requested reconsideration of the trial court’s denial of their article II, section 19 single subject claim. App. 3 No affidavits for further discovery were ever filed by Respondents and they later disputed requesting additional discovery. App. at 1400. 9 20284 00002 jc239w07fb.002 at 1371, 1375-78. The State and Didier requested reconsideration of the trial court’s ruling regarding Appellants’ article I, section 12 claim, abandoning and/or disavowing their request for further discovery and arguing the claim failed as a matter of law. App. at 1363-69, 1399-1405. The State also requested that the court lift the preliminary injunction. App. at 1405-06. On March 12, 2020, the trial court disposed of all parties’ reconsideration motions. App. at 1418-23. The court denied Appellants’ motion without analysis. App. at 1418-19. As to the State’s and Didier’s motions, the court first vacated its refusal to enter summary judgment as to Appellants’ claim under article I, section 12 of the Constitution. App. at 1421. It then granted in part Appellants’ motion for summary judgment, ruling that sections 8 and 9 of I-976 (requiring KBB valuation) violated article I, section 12 of the Constitution. Id. The court next ruled without explanation that sections 8 and 9 of I-976 “are severable and are hereby severed from the initiative as enacted,” despite inclusion of those subjects in the ballot title. Id. Finally, the court vacated and modified in part its November 27, 2019, order granting Appellants’ motion for a preliminary injunction. App. at 1421-22. Specifically, the court vacated its preliminary injunction order as to all parties, persons, and political 10 20284 00002 jc239w07fb.002 subdivisions other than the City of Burien 4 and lifted the injunction “except as to the severed Sections 8 and 9, which shall not be implemented because they are unconstitutional.” Id. The court then suspended the portions of its order vacating and modifying the injunction until March 27, 2019 in order to allow Appellants to move to reinstate the injunction or seek relief from an appellate court. App. at 1423. Appellants filed a notice of discretionary appeal to this Court on March 19, 2020. App. at 1424-27. Meanwhile, the parties submitted a stipulation for a CR 54(b) certification and proposed judgment to the trial court. App. at 1470-83. The court accepted and entered the stipulated CR 54(b) certification and associated judgment on March 24, 2020. App. at 1692-1710. Appellants are filing a notice of appeal directly to this Court. Appellants now seek injunctive relief from this Court pending review. C. Appellants Will Suffer Irreparable Harm If I-976 Is Implemented. The trial court’s finding of harm in both its preliminary injunction and summary judgment orders is supported by a comprehensive record amply demonstrating that Appellants will suffer multiple measurable and irreparable harms if I-976 is implemented. This record was largely undisputed and supports several key points. 4 The City of Burien’s claim that I-976 is unconstitutional under article I, section 23 remains before the trial court. 11 20284 00002 jc239w07fb.002 Revenues lost upon implementation of I-976 cannot be recovered later if the initiative is deemed unconstitutional. It was undisputed that if I-976 took effect, but was later ruled unconstitutional, that the revenue not collected while this case was pending would be forever lost. See App. at 33-34, 100-01, 104-07, 220-21, 322-44, 346, 446-48, 465-68, 527-28, 531-32, 1094-97, 1133, 1155; see also Durkan Decl., ¶ 3. This is because the taxes and fees impacted by I-976 cannot be retroactively collected from vehicle owners. I-976 will substantially harm local transit and transportation services by eliminating TBD VLFs that were approved by local voters and councils. Appellants also demonstrated that allowing I-976 to take effect would substantially harm Appellants King County, City of Seattle, and other cities across the state including Spokane and Vancouver by removing the authority of TBDs to impose VLFs. TBD VLF revenues— which totaled more than $58 million statewide in 2018—provide vital funding for critical local transportation improvements and expansions and access to transit services, are a source of matching funds for transportation grants, and are pledged to repayment of debt on local transportation projects. App. at 33, 103, 155-57, 217, 220, 620-21, 1093-94, 1132, 115455; see also Gannon Decl., ¶¶ 4-6, 9, 11-15; Durkan Decl., ¶ 2. This revenue would be eliminated as soon as I-976 takes effect. App. at 104, 12 20284 00002 jc239w07fb.002 121-24, 1094; see also Gannon Decl., ¶¶ 12-14; Durkan Decl., ¶ 3. And because cities statewide would forever lose any VLFs not collected during the pendency of this case, projects slated to use such funds will be underfunded or not funded at all, and in many cases halted in the midst of pending local projects or plans. App. at 33-35, 100-01, 104-07, 155, 217, 220-21, 465-68, 1094-97, 1133, 1155; see also Durkan Decl., ¶ 4. The $4 billion in total revenue cuts caused by I-976 causes substantial harms statewide. The record also shows that reduction in transportation funding and services necessitated by I-976 would irreparably injure many other individuals, governments, and organizations who rely on transit services and efficient and effective transportation. Multiple diverse entities, from transit users (many of whom have special needs), to transit agency employees, to the Port of Seattle, would suffer impacts to mobility, job security/income, and ability to conduct their daily business if I-976 took effect. See App. at 27-29, 33-34, 181-85, 197, 20405, 213-17, 220-21; see also Gannon Decl., ¶¶ 12-17. The I-976 cuts will magnify the harm to the transportation system caused by the current COVID-19 crisis, impeding recovery. The recent COVID-19 emergency has placed municipalities in a fiscal crisis. They have increased their expenditures to address COVID-19, but at the same time are experiencing sudden, unanticipated, and profound 13 20284 00002 jc239w07fb.002 revenue losses as a result of COVID-19-related economic shock. Durkan Decl., ¶¶ 3-4 & Ex. 1; Gannon Decl., ¶¶ 6-9. For example, the City of Seattle has responded to COVID-19 by spending millions of dollars on small business support, grocery vouchers, and shelter expansion, but Seattle General Fund revenue projections are likely to be revised downward by at least $110 million (7%) due to COVID-19 effects. Durkan Decl., ¶¶ 4-5. Similarly, King County Metro is attempting to maintain adequate transit service for necessary workers such as health care professionals and first responders, but has been forced to adopt emergency measures including waiver of fares (which represent approximately 18% of Metro’s operating revenue) and a 25% reduction in service without a corresponding reduction in expenses. Gannon Decl., ¶¶ 6-8. Implementation of I-976 would result in immediate and permanent additional loss of revenues, further exacerbating these and other municipalities’ precarious social and economic circumstances and slowing post-COVID-19 recovery. Durkan Decl., ¶ 4; Gannon Decl., ¶¶ 7-15. V. A. GROUNDS FOR RELIEF This Court May Stay Trial Court Decisions Pending Appeal. RAP 8.1(b)(3) and RAP 8.3 give this Court “discretion to stay the enforcement of trial court decisions” in order to maintain the status quo pending appeal. Moreman v. Butcher, 126 Wn.2d 36, 42 n.6, 891 P.2d 14 20284 00002 jc239w07fb.002 725 (1995). Under RAP 8.1(b)(3), the Court considers (1) whether the moving party can demonstrate debatable issues, and (2) a comparison of the injury that would be suffered by the moving party in the absence of a stay with the injury to the non-moving party if a stay is issued. See id. In evaluating whether to stay enforcement of a decision under RAP 8.3, the Court considers “(1) whether the issue presented by the appeal is debatable, and (2) whether a stay is necessary to preserve for the movant the fruits of a successful appeal, considering the equities of the situation.” Purser v. Rahm, 104 Wn.2d 159, 177, 702 P.2d 1196 (1985); see also Wash. Fed’n of State Emps. v. State, 99 Wn.2d 878, 883, 665 P.2d 1337 (1983) (“The purpose of [these rules] is to permit appellate courts to grant preliminary relief in aid of their appellate jurisdiction so as to prevent the destruction of the fruits of a successful appeal.”). Appellants’ requested stay satisfies RAP 8.1(b)(3) and RAP 8.3 and should be granted. B. The Issues Presented on Appeal Are, at a Minimum, Debatable. To be entitled to a stay, the moving party need not demonstrate ultimate success on the merits of the appeal, but simply that the issues are debatable. Kennett v. Levine, 49 Wn.2d 605, 607, 304 P.2d 682 (1956). For multiple reasons, the State cannot meaningfully dispute that this appeal presents (at least) debatable issues. 15 20284 00002 jc239w07fb.002 First, both the trial court and the State have acknowledged that at least some of the issues present on appeal are debatable. The trial court in this case ruled that Appellants were likely to prevail on at least their subject in title claim and granted their motion for a preliminary injunction on that basis. See App. at 526-33. This Court reviewed and ultimately declined to stay that injunction. App. at 1655-56. That the trial court later changed its mind and ruled in the State’s favor on that claim does not alter this conclusion. Moreover, in previously seeking its own emergency stay in this matter, the State represented to this Court that this case on the merits “presents (at least) debatable issues,” including that “[i]t is at least debatable that the superior court erred in its subject-in-title analysis.” App. at 1512, 1643. The State cannot now contest that the current appeal, involving the same claims on the merits, presents at least debatable issues. 5 Second, the trial court struck two sections of I-976, but without explanation, severed them to allow I-976 to go into effect. Significantly, the subject stricken (adopting KBB values) was part of the ballot title. The question of severability raises a significant debatable issue. 5 Appellants’ opposition to the stay focused on prudential concerns against interlocutory appeals, and the ability to establish issues that were debatable when viewed through the lens of RAP 2.3 discretionary review criteria. App. at 1534-1583. Here, with the CR 54(b) certification and judgment, Appellants present an appeal as of right under RAP 2.2. 16 20284 00002 jc239w07fb.002 Third, the parties extensively briefed and the trial court ruled upon a large number of significant constitutional issues that this Court will address on appeal. Appellants’ primary claims, 6 all of which raise at least debatable issues for this Court to decide, include the following: 1. I-976’s Ballot Title Violates Article II, Section 19’s Subject in Title Requirement. I-976 violates article II, section 19’s subject in title requirement because the ballot title substantially misleads voters and fails to disclose its multiple subjects. A measure with a false or misleading ballot title automatically fails constitutional requirements if it deceives voters. See Wash. Ass’n for Substance Abuse & Violence Prevention v. State, 174 Wn.2d 642, 660, 278 P.3d 632 (2012); see also App. at 847-48. Even if not deceitful, a ballot title survives constitutional scrutiny only if it gives “notice which would lead to an inquiry into the body of the act” or indicates “the scope and purpose of the law to an inquiring mind.” Amalgamated Transit Union Local 587 v. State, 142 Wn.2d 183, 217, 11 P.3d 762 (2000) (“ATU”). I-976’s ballot title is deceptive and affirmatively misleading, a constitutional violation that invalidates the entire measure. Howlett v. Cheetham, 17 Wash. 626, 635, 50 P. 522 (1897). First, the ballot title 6 Appellants present several examples of at least debatable constitutional issues below for purposes of this Motion, but expressly do not waive arguments not addressed. 17 20284 00002 jc239w07fb.002 claims that I-976 exempts “voter-approved charges” from the $30 car tab cap, but the initiative actually eliminates all existing voter-approved charges and the possibility of a future vote of the people for local taxes and fees. Second, the ballot title plainly describes a $30 cap on “annual motor-vehicle-license fees,” but the State argued before the trial court that multiple vehicle license fees in chapter 46.17 RCW will continue to apply in excess of that cap 7—meaning license tab fees will substantially exceed the promise of $30. App. at 1288-89, 1676-82, 1686-90. Independently, I-976’s ballot title fails to give notice of important subjects of I-976. The ballot title does not reference bond retirement (which requires substantial expenditures and collection of additional taxes), elimination of a specific vehicle sales tax, or other subjects that permeate the initiative. Nor does it prompt inquiry into these topics by including words like “bond” or “vehicle sales.” I-976 violates the subject in title rule for this additional reason. See ATU, 142 Wn.2d at 220-27. For these and other reasons discussed in Appellants’ trial court briefing, see App. at 375-79, 453-54, 1199-1206, 1263-66, 1312-14, there is at least a debatable issue as to I-976’s compliance with article II, section 19’s subject in title rule. 7 The State did so to avoid invalidation under article II, section 37 due to the implied amendment of multiple provisions under chapter 46.17 RCW. See infra. 18 20284 00002 jc239w07fb.002 2. Sections 8 and 9 of I-976 Violate Article I, Section 12 By Requiring Use of KBB Valuation, and Are Not Severable. As the trial court correctly concluded on reconsideration, sections 8 and 9 of I-976—which require the use of the KKB valuation product for certain vehicle taxes—violate the privileges and immunities clause of the Washington Constitution. App. at 1421-22. The KBB valuation product is a proprietary valuation method owned by a private, multi-national corporation. App. at 812, 814, 816-24. I-976’s KBB specification would require the State to enter an exclusive contract or other partnership agreement with KBB and its owner for use of the KBB product. See App. at 816-24. This grant of an exclusive privilege for state business to a specific private corporate entity, without any reasonable ground to do so, violates the Constitution. See Const. art. I, § 12. Accordingly, the trial court properly invalidated sections 8 and 9 of I-976. The trial court’s decision to sever sections 8 and 9, rather than invalidate I-976 for this violation of article I, section 12, raises a significant debatable issue. See App. at 1421-22. Crucially, the promise to impose the KBB valuation product was expressly included in I-976’s ballot title: Initiative Measure No. 976 concerns motor vehicle taxes and fees. 19 20284 00002 jc239w07fb.002 This measure would repeal, reduce, or remove authority to impose certain vehicle taxes and fees; limit annual motorvehicle-license fees to $30, except voter-approved charges; and base vehicle taxes on Kelley Blue Book value. Should this measure be enacted into law? App. at 292. This Court has repeatedly emphasized the importance of the ballot title, explaining that “voters will often make their decision based on the title of the act alone, without ever reading the body of it.” Citizens for Responsible Wildlife Mgmt. v. State, 149 Wn.2d 622, 639, 71 P.3d 644 (2003); see also Wash. Citizens Action of Wash. v. State, 162 Wn.2d 142, 154, 171 P.3d 486 (2007) (“it is the ballot title with which voters are faced in the voting booth” (internal quotation omitted)). If sections 8 and 9 are severed, I-976’s ballot title will no longer accurately describe the measure, resulting in votes based on a false and unconstitutional promise of KBB valuation. Article II, section 19 would be meaningless if it allowed initiatives to entice voters with unconstitutional promises in the ballot title, only to sever them prior to implementation. Nor can it be said that the voters “would have enacted the remainder of the act” without the invalid provisions given the express KBB valuation promise in the ballot title. League of Women Voters of Wash. v. State, 184 Wn.2d 393, 412, 355 P.3d 1131 (2015). Given the text of I-976 and its ballot title, the valid portions 20 20284 00002 jc239w07fb.002 of the initiative are not severable from the invalid provisions. See City of Seattle v. Yes for Seattle, 122 Wn. App. 382, 394-95, 93 P.3d 176 (2004). 3. I-976 Violates the Single Subject Rule. In addition to the subject in title requirement, I-976 violates article II, section 19’s requirement that “[n]o bill shall embrace more than one subject.” Initiatives with general titles 8 violate the single-subject rule if they lack “rational unity,” i.e., if the matters within the body of the initiative are not germane to the general title and each other. City of Burien v. Kiga, 144 Wn.2d 819, 826, 31 P.3d 659 (2001). The multiple subjects of I-976 9 are not fairly within the ballot title and there is no rational unity among them. This Court has held that initiatives violate the single subject rule where one subject is long-term and “continuing” in nature, i.e., a general subject, and a second subject involves a onetime event, i.e., a specific subject. See, e.g., Wash. Toll Bridge Auth. v. State, 49 Wn.2d 520, 52325, 304 P.2d 676 (1956). 10 Below, the State claimed that all of I-976’s 8 For purposes of this Motion only, Appellants do not contest I-976’s title is general. I-976 combines at least seven subjects: (1) a purported reduction in state vehicle registration fees to $30, (2) elimination of locally voted registration taxes, (3) elimination of the vehicle sales tax, (4) the removal of local voter authority to adopt vehicle fees, (5) a purported requirement that Sound Transit repay outstanding bonds, (6) a change in a vehicle valuation schedule only used by Sound Transit, and (7) a reduction in Sound Transit’s authority to issue future MVETs should it not repay its bonds. 10 See also Kiga, 144 Wn.2d at 826-28; ATU, 142 Wn.2d at 216-17; Lee v. State, 185 Wn.2d 608, 621-23, 374 P.3d 157 (2016). 9 21 20284 00002 jc239w07fb.002 subjects were “continuing” in nature. See App. at 1674-75. But the plain text of the initiative demonstrates otherwise. Section 2 of I-976 expressly identifies the initiative’s primary subject: “State and local motor vehicle license fees may not exceed $30 per year for motor vehicles, regardless of year, value, make, or model.” App at 274. Section 12 of I-976, however, contains a particularly obvious non-germane, onetime subject not mentioned in the ballot title: the requirement that Sound Transit “fully retire, defease, or refinance any outstanding bonds issued under [chapter 81.112 RCW]” if the bonds are secured by revenue from an MVET. App. at 288. 11 Similarly, sections 6 and 7 of the initiative contain specific, onetime repeals of various fees and taxes. See App. at 282-83. When combined with I-976’s continuing $30 cap, these provisions also violate the single subject rule. Further, under the State’s own arguments below, I-976’s provision limiting car tab fees to $30 except “charges approved by voters” constitutes an unconstitutional second subject. To defend against Appellants’ subject in title claim (discussed above), the State in its summary judgment briefing and at oral argument claimed that the only 11 Unlike the last time this Court reviewed an initiative with an additional subject regarding early retirement of Sound Transit’s bonds, the language in I-976 is legally operative and not merely “precatory” in nature. See Pierce Cty. v. State, 150 Wn.2d 422, 428-29, 432-36, 78 P.3d 640 (2003) (“Pierce Cty. I”). 22 20284 00002 jc239w07fb.002 voter-approved charges excepted from the $30 cap were one specific category of state motor vehicle license fees (as contrasted to local taxes or fees) that might in future be approved by voters. See App. at 1288-89, 1683-85. In other words, under the State’s interpretation, only voters may approve future state motor vehicle license fees in excess of the $30 cap; impliedly the Legislature cannot, even though it previously had the power to do so. The trial court adopted this interpretation, concluding that I-976 truthfully required any future increases in state vehicle license fees to be voter approved. See App. at 1348-49. What the State and trial court failed to recognize is that I-976’s change in the legislative mechanism for increasing state vehicle license fees constitutes an unconstitutional second subject of I-976. 12 See ATU, 142 Wn.2d at 217; Kiga, 144 Wn.2d at 82728; Lee, 185 Wn.2d at 622-23. Additional “logrolling” issues raised by I-976 are described in Appellants’ trial court briefing. See App. at 368-75, 454-57, 1206-15, 1258-63, 1315-17. At a minimum, Appellants present several debatable issues as to whether I-976 violates the single subject rule, any one of 12 It also likely amounts to illegal amendment of the Constitution by initiative. See, e.g., Lee, 185 Wn.2d at 622-23, 628-29 (restriction on legislative enactment of future taxes was single subject violation and unlawful constitutional amendment); League of Educ. Voters v. State, 176 Wn.2d 808, 826, 295 P.3d 743 (2013) (requirement that future taxes be passed by supermajority was unlawful constitutional amendment). 23 20284 00002 jc239w07fb.002 which would fully invalidate I-976. Kiga, 144 Wn.2d at 828; ATU, 142 Wn.2d at 216. 4. I-976 Unconstitutionally Amends Existing Law Under Article II, Section 37. I-976 also violates article II, section 37 of the Washington Constitution because it amends existing statutes without setting the amendments forth in full, resulting in confusion as to the effect of the new law. Article II, section 37 mandates that “[n]o act shall ever be revised or amended by mere reference to its title, but the act revised or the section amended shall be set forth at full length.” Under the two-prong test most recently discussed in Black, this Court first considers whether the new enactment “is a complete act, such that the rights or duties under the statute can be understood without referring to another statute[.]” 457 P.3d at 458 (internal quotations omitted). Second, the Court asks whether “a straightforward determination of the scope of rights or duties under the existing statutes [would] be rendered erroneous by the new enactment.” Id. (internal quotations omitted); see also El Centro De La Raza v. State, 192 Wn.2d 103, 129, 428 P.3d 1143 (2018). In Black—decided the day after the trial court ruled on the parties’ summary judgment motions in this case—this Court rejected an article II, section 37 challenge to RCW 81.104.160(1) (the “MVET statute”), which 24 20284 00002 jc239w07fb.002 authorizes Sound Transit to use two separate depreciation schedules to calculate MVETs depending on whether outstanding bonds exist to which MVET revenues have been pledged. 13 This Court first held that the “rights laid out in the MVET statute are readily ascertainable from its text alone” given that the statute specifically states in which circumstance each depreciation schedule will apply and “properly adopts both depreciation schedules by reference.” Black, 457 P.3d at 459. Accordingly, the MVET statute is a “complete act.” Id. Second, the Court held that the MVET statute meets the second prong of the article II, section 37 test because it “lists out which statutes apply at which time, and no reader is required to conduct a thorough search of existing laws that are unreferenced to understand the statute’s effect.” Id. at 461 (internal quotations omitted). The Court further explained that like the statute at issue in State v. Thorne, 129 Wn.2d 736, 746, 756, 921 P.2d 514 (1996), the MVET statute’s “notwithstanding” clause made the statute’s effect on existing laws 13 RCW 81.104.160(1) provides in relevant part: Notwithstanding any other provision of this subsection or chapter 82.44 RCW, a motor vehicle excise tax imposed by a regional transit authority before or after July 15, 2015, must comply with chapter 82.44 RCW as it existed on January 1, 1996, until December 31st of the year in which the regional transit authority repays bond debt to which a motor vehicle excise tax was pledged before July 15, 2015. Motor vehicle taxes collected by regional transit authorities after December 31st of the year in which a regional transit authority repays bond debt to which a motor vehicle excise tax was pledged before July 15, 2015, must comply with chapter 82.44 RCW as it existed on the date the tax was approved by voters. 25 20284 00002 jc239w07fb.002 “clear.” Id. Accordingly, this Court held the MVET statute constitutional under article II, section 37. Id. at 460-42. In contrast to the MVET statute, I-976 is not a complete act and its impacts cannot be determined without review of multiple other statutes. Most notably, section 6 of I-976 completely repeals RCW 82.80.140 regarding TBD VLFs. But the initiative does not mention provisions in chapter 36.73 RCW that separately authorize TBD VLFs. See RCW 36.73.040, .065. Nor does the initiative contain “notwithstanding” or similar language clarifying its impact on chapter 36.73 RCW. The State admitted, and the trial court ruled, that I-976’s repeal of RCW 82.80.140 renders portions of chapter 36.73 RCW inoperative. See App. at 418-20, 602-03, 1353. In failing to set out or otherwise disclose its effect on chapter 36.73 RCW, I-976 renders erroneous a straightforward determination of rights and duties thereunder. See ATU, 142 Wn.2d at 253-54; El Centro, 192 Wn.2d at 132. Appellants’ complete grounds for I-976’s violation of article II, section 37 are set forth at App. 379-82, 457-58, 1215-20, 1267-71, 131718, 1373-75, 1411-13. This claim at the very least presents additional debatable issues supporting a stay. 26 20284 00002 jc239w07fb.002 5. I-976 Unconstitutionally Infringes on Local Control. I-976 also infringes on the right of local control over issues of local concern enshrined in several provisions of the Constitution. Article XI, section 12 vests legislatively delegated taxing authority for local purposes in local municipal governments. Known as the “home-rule provision,” section 12 restricts “direct legislative action as to local taxing matters” so as to “bar the state legislators, whose members come from all parts of the state, from dictating local taxing policy and instead to allow municipalities to control local taxation for local purposes.” Larson v. Seattle Popular Monorail Auth., 156 Wn.2d 752, 756 n.3, 131 P.3d 892 (2006). This Court has previously explained how the structure of section 12 restricts a fresh exercise of legislative power over a previous vesting of municipal taxing authority for a local purpose. See State v. Redd, 166 Wash. 132, 137-39, 144-45, 6 P.2d 619 (1932). Following a proper delegation and a local decision to exercise that vested power for a local purpose, a legislative decision to “take away” local taxes dedicated for that local purpose violates constitutional guarantees of local self-government. Id. at 139, 143. Section 6 of I-976 does exactly what article XI, section 12 prohibits: it divests municipal corporations (notably TBDs) of a previously delegated, lawfully exercised and vested authority to collect local taxes for local purposes. This elimination of vested taxing authority 27 20284 00002 jc239w07fb.002 is distinct from the more general home rule claim rejected by this Court in Pierce County I, 150 Wn.2d at 429, 440, as Respondent Pierce County (which intervened as a defendant and generally sided with the State below) confirmed in a separate summary judgment response as to section 12’s vesting language. See App. at 1249-50. Pierce County’s refusal to endorse the State’s position emphasizes there is at least a debatable issue under article XI, section 12. I-976 also infringes on local control by interfering with local elections. Article I, section 19 of the Constitution guarantees “free and equal” elections and prohibits interference “to prevent the free exercise of the right of suffrage.” This includes a prohibition on interference that is direct (by outright prohibition of voting) and indirect (by “debasement or dilution of the weight of a citizen’s vote”). City of Seattle v. State, 103 Wn.2d 663, 673, 694 P.2d 641 (1985); Gold Bar Citizens for Good Gov’t v. Whalen, 99 Wn.2d 724, 730, 665 P.2d 393 (1983). As noted above, in 2014 Seattle voters overwhelmingly approved increased VLFs to fund additional bus service and transportation needs. I-976’s repeal of TBD VLF authority retroactively invalidates the results of this local vote despite continued majority support for transportation-related taxes and fees by the Seattle electorate, resulting in vote dilution and nullification in violation of 28 20284 00002 jc239w07fb.002 article I, section 19. See App. at 220 14 (Seattle voters approved 2014 VLF by over 62%; 5 years later, 76% of Seattle voters rejected I-976). Appellants’ other arguments as to I-976’s interference with local control are set forth in their trial court briefing and, like the other issues discussed herein, present debatable issues on appeal. See App. 1220-32, 1273-76, 1319-21. In sum, Appellants present multiple debatable issues on appeal, satisfying the first prong of RAP 8.1(b)(3) and 8.3. C. The Comparative Harms of a Stay Pending Appeal Vastly Favor Appellants. A comparison of harms clearly supports a stay. Appellants have demonstrated, through an extensive and detailed record, that I-976’s implementation will result in both an immediate and permanent loss of incoming revenue and future impacts to transportation systems statewide—and these harms vastly outweigh any harm to the State in enjoining I-976 pending this appeal. Under the trial court’s order on reconsideration, I-976 will take effect on March 27, 2020, absent intervention by the trial court or this Court. App. at 1423. The State has previously confirmed it intends to 14 See also https://results.vote.wa.gov/results/20191105/State-Measures-InitiativeMeasure-No-976_ByCounty.html as of 3/23/20 (searching by precincts SEA); https://www.seattletimes.com/seattle-news/politics/majority-of-voters-paying-soundtransits-car-tab-taxes-opposed-i-976/ (last visited Mar. 23, 2020). 29 20284 00002 jc239w07fb.002 change its collection procedures to comply with I-976 once the initiative takes effect. See App. at 346, 436, 446-48. On day one of implementation, absent an injunction, the State and its agents will cease to collect lawfully enacted vehicle registration fees and taxes, including about $58 million in local TBD VLFs currently imposed by more than 60 local governments. As the trial court correctly determined, once this revenue goes uncollected, there is no way to collect it later if I-976 were ultimately found to be constitutional. See App. at 528, 531. Indeed, the State has never disputed (and cannot dispute) this point. The permanent loss of revenue is a textbook example of actual, substantial, immediate, and irreparable harm. Moreover, as discussed supra, I-976’s immediate and permanent revenue reductions would compound the economic shock that Appellants and other municipalities throughout Washington are experiencing as a result of the COVID-19 emergency. The City of Seattle, King County Metro, and other municipal governments have necessarily increased expenditures in response to COVID-19, while at the same time suffering revenue losses due to service cuts and economic disruption. Implementation of I-976 and the necessary additional service and program cuts that would follow would worsen the current social and economic 30 20284 00002 jc239w07fb.002 upheaval and impede municipalities’ response to and recovery from COVID-19-related impacts. The loss of transportation funding resulting from I-976’s repeal of TBD VLF authority and its limitation or repeal of various other fees and taxes would also cause downstream effects negatively impacting Appellants’ projects, programs, and operations. The trial court properly concluded at the preliminary injunction stage that if I-976 were to be implemented pending review of its constitutionality, “all [Appellants]…would eventually, inevitably be forced to cut a wide array of programs and services due to reductions in fee/tax revenue stemming from I-976” and those “long-term hardships…could not be retroactively mitigated.” App. at 532. The trial court reiterated on summary judgment that Appellants had established I-976 “would harm them in numerous ways, including drastic reductions in funding for public transit, road and highway improvement projects, ferry service, and projects that are critical from a public safety standpoint.” App. at 1335-36. The above harms to Appellants absent a stay substantially outweigh any alleged harm to the State if a stay is granted. The State admits (and the trial court agreed) that there is a viable refund process in the event I-976 is ultimately upheld. See App. at 430-31, 450, 529, 531, 1520. Indeed, the process was used following the unsuccessful initiative 31 20284 00002 jc239w07fb.002 challenge to I-776 and is mandated by statute. See App. at 1661-69; 15 RCW 46.68.010(1) (“A person who has paid all or part of a vehicle license fee under this title is entitled to a refund if the amount was paid in error…”); RCW 4.68.010(2) (“The department [of licensing] shall refund overpayments of vehicle license fees and motor vehicle excise taxes under Title 82 RCW that are ten dollars or more. A request for a refund is not required.”). Any tax or fee allegedly overpaid is easily remedied through a refund should the State prevail in this appeal. And the potential administrative cost to the State in issuing refunds—which is grossly overblown 16—pales in comparison to the hundreds of millions of dollars Appellants stand to lose in revenues and funding that can never be recovered. App. at 1507. In sum, the record demonstrates that the harm to Appellants absent a stay is substantially greater than the alleged harm to the State if this Court grants a stay. Appellants meet the second prong of RAP 8.1(b)(3), and a stay is warranted. 15 The Appendix includes this Final Order Establishing the Terms for Refunds from the challenge to I-776, which is a publicly filed document of which the Court may take judicial notice. 16 The State’s claim that an inefficient and bloated refund process will cause inordinate expenditures to process refunds is not a reason to deny this emergency motion. This is a crisis of the State’s own making. There is no indication in record materials that the State cannot streamline its refund process, or that it actually faced these problems for refunds processed under I-776. 32 20284 00002 jc239w07fb.002 D. A Stay Pending Appeal Is Necessary to Preserve the Fruits of this Appeal and Preserve the Status Quo. Appellants also meet additional criteria for issuance of a stay pending appeal under RAP 8.3, as reaffirmed by this Court in Purser: Whether a stay pending appeal should be granted depends on (1) whether the issue presented by the appeal is debatable, and (2) whether a stay is necessary to preserve for the movant the fruits of a successful appeal, considering the equities of the situation. 104 Wn.2d at 177 (emphasis added). Here, allowing I-976 to take effect would destroy the fruits of Appellants’ appeal. As noted above, the comprehensive record in this case establishes that absent injunctive relief from this Court, multiple revenue streams would be eliminated or reduced immediately upon implementation of I-976. App. at 100-01, 103-07, 155-57, 220-21, 436, 446-48, 1094-97, 1155. The State has never disputed that, once foregone, these revenues cannot be recovered. The permanent inability to recoup lost revenue is a textbook example of “fruits of the appeal” that will be lost if this Court does not grant a stay. See Shamley v. Olympia, 47 Wn.2d 124, 126-27, 286 P.2d 702 (1955) (sale of timber pending appeal would destroy the subject matter of the action, rendering a successful appeal fruitless); Boeing Co. v. Sierracin Corp., 43 Wn. App. 288, 292, 716 P.2d 956 (1986) (stay appropriate where party would otherwise be forced out of business); Kennett v. Levine, 49 Wn.2d 605, 607-08, 304 P.2d 682 (1956) 33 20284 00002 jc239w07fb.002 (stay appropriate where, if party were removed from office without cause, successor could be appointed immediately). Further, a stay will maintain the status quo. The “status quo ante” means the “‘last actual, peaceable, noncontested condition which preceded the pending controversy.’” Gen. Tel. Co. of the Nw., Inc. v. Wash. Utils. & Transp. Comm’n, 104 Wn.2d 460, 466, 706 P.2d 625 (1985) (quoting State ex. rel. Pay Less Drug Stores v. Sutton, 2 Wn.2d 523, 529, 98 P.2d 680 (1940)); see also Burien Cmtys. for Inclusion v. Respect Wash., No. 77500-6-I, 2019 WL 4262081, at *7 (Wash. Ct. App. Sept. 9, 2019). Here, the status quo is the continued collection of taxes and fees that would otherwise be eliminated or reduced by I-976, a condition that also has been preserved throughout the trial court proceedings. Indeed, the State has argued in other cases that the status quo is best preserved by preventing the effectiveness of a new law or rule via a preliminary injunction. See App. at 1559, 1611-12. VI. CONCLUSION If a stay is not granted, Appellants will suffer substantial irreparable injury and be denied the fruits of this appeal in the event they prevail. The issues presented in this appeal are also at least debatable (and should result in reversal). Appellants respectfully request that the Court 34 20284 00002 jc239w07fb.002 grant this Motion, stay the trial court’s order, and enjoin implementation of I-976 pending final resolution of this appeal. RESPECTFULLY SUBMITTED this 24th day of March, 2020. DANIEL T. SATTERBERG King County Prosecuting Attorney PETER S. HOLMES Seattle City Attorney By: s/ David J. Hackett David J. Hackett, WSBA #21236 David J. Eldred, WSBA #26125 Jenifer Merkel, WSBA #34472 Senior Deputy Prosecuting Attorneys Erin B. Jackson, WSBA #49627 Deputy Prosecuting Attorney By: s/ Carolyn U. Boies Carolyn U. Boies, WSBA#40395 Erica Franklin, WSBA#43477 Assistant City Attorneys John B. Schochet, WSBA#35869 Deputy City Attorney Attorneys for City of Seattle Attorneys for King County PACIFICA LAW GROUP LLP By /s Matthew J. Segal Paul J. Lawrence, WSBA #13557 Matthew J. Segal, WSBA #29797 Jessica A. Skelton, WSBA #36748 Attorneys for Washington State Transit Association, Association of Washington Cities, Port of Seattle, Garfield County Transportation Authority, Intercity Transit, Amalgamated, Transit Union Legislative Council of Washington, Michael Rogers, City of Burien and Justin Camarata 35 20284 00002 jc239w07fb.002