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Santa Cruz goes ahead with soda tax in defiance of state law
While the city prepares for legal backlash, as of May 1 Santa Cruz has enacted a soda tax voters approved last November.
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Good morning, California.

Santa Cruz goes ahead with soda tax in defiance of state law

Coca-Cola soda on display at a Walmart Super Center in Compton on Jan. 10, 2017. Photo by Mike Blake, Reuters

Last week the Northern California beach town of Santa Cruz enacted a tax on sodas, ice teas and other beverages with added sugar. Voters approved the 2-cent-per-ounce tax in November, despite the beverage industry pouring at least $1.2 million in opposition.

Besides generating an estimated $1.3 million for the city, the tax aims to curb the overconsumption of sugary drinks, which research has shown to work. Drinking too many sugary drinks can lead to heart disease and Type 2 diabetes, said Blythe Young, a lobbyist for the American Heart Association, a key proponent of the tax.

  • Young: “The average American consumes a bathtub full of sugar from sugary drinks annually, or 30 gallons.”

But the tax also exists in defiance of state law — sort of.

Let’s back up: In 2018 California lawmakers brokered a deal with the beverage industry to preemptively ban local governments from implementing local grocery taxes until 2030.

That law included a provision requiring the state to withhold local sales tax revenue from any city imposing its own new grocery tax, even if a court determined that the tax “is a valid exercise of a city’s authority.”

Charter cities — which under California’s constitution are granted more flexibility from some state laws — took that part personally. Especially Santa Cruz, at the time poised to put a soda tax proposal before voters, which it then had to scrap.

But, in 2023 a state appeals court ruled that the withholding revenue part of the law was unconstitutional, giving Santa Cruz’s city council the green light to move forward with a soda tax. So, the law against cities enacting their own grocery tax is still in effect, but the law has no teeth (perhaps appropriate for a law effectively protecting sugar consumption).

In a statement to CalMatters, the American Beverage Association said it is assessing next steps, decrying Santa Cruz’s tax as illegal and an “unfair burden on working families struggling with record-high prices.”

A legal dispute would serve as yet another instance of a city attempting to carve out more autonomy. Cities have recently fought to enact their own housing policies, election rules and book bans. But instead of coming to blows with the state (or the federal government at times), Santa Cruz would be facing a multibillion-dollar industry.

  • Shebreh Kalantari-Johnson, Vice Mayor of Santa Cruz: “We’re ready for that. … It does not have to be the case where people with money or special interests can dictate how a city, county or state makes decisions. It should not be.”

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CalMatters kudos: CalMatters’ collaborations with CBS News are again nominated for two Northern California Emmy awards, following two previous Emmy wins, for deep reporting employing CalMatters’ Digital Democracy.

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Prisons not ready for disasters, report finds

The California State Prison sits at the edge of the re-emerging Tulare Lake in southern Central Valley on April 13, 2023. Photo by George Rose, Getty

As President Donald Trump directs the Department of Justice and FBI to reopen the aging Alcatraz as a prison, a review of 30 active state prisons found that California’s corrections system is woefully unprepared for natural disasters, writes CalMatters’ Cayla Mihalovich.

Published last week, the report by an independent oversight agency said that issues with transportation, overcrowding and an emphasis on reshuffling prisoners within prison walls during a disaster instead of an outside location, are some of the shortcomings of the prisons’ emergency preparedness.

  • The report: “The department is unable to evacuate the incarcerated population and staff at most prisons within the first critical 72 hours of an emergency. Without the ability to quickly evacuate prisons, it is likely that wildfires, floods, and earthquakes will result in loss of life within the incarcerated population.”

In 2023 storms threatened to flood two San Joaquin Valley prisons. The prisons ultimately remained safe, but the event underscored the department’s need to develop better evacuation plans.

Some human rights advocates say the findings are still troubling, confirming what they’ve argued for years about the department’s inability to face climate hazards.

Now featuring: CalMatters’ photojournalism

Crab pots used to catch Dungeness crab in Bodega Bay on April 11, 2025. Fishermen and local restaurant owners’ businesses have been impacted by a multi-year statewide ban on salmon fishing and restrictions on harvesting Dungeness crab. Photo by Florence Middleton for CalMatters

From CalMatters visual editor Miguel Gutierrez Jr.:

Our team works hard to capture the best images we can for stories across the state. This week we’re featuring four photographs that underscore some of what we do best. 

In the photo above, the colors and shapes of crab pots added texture to a story about Bodega Bay’s changing economy. Below, note the perspective and angles used in one photo of children at a Dia del Niño celebration, versus a portrait of a couple grappling with lingering damage from the Los Angeles fires in January. Finally, photographer Fred Greaves was able to capture the raw emotion of a grieving mother testifying in front of the Legislature.

Children and families participate in various activities during a Dia del Niño celebration at St. John’s ECS Head Start in Chula Vista on April 30, 2025. Trump has proposed eliminating Head Start funding in an initial budget plan he sent to Congress. Photo by Adriana Heldiz, CalMatters
Sam Strgacich (left) and his wife Rossana Valverde at their home in Pasadena on April 26, 2025. Strgacich and Valverde are trying to reach a settlement with State Farm to cover costs associated with repairing damage caused by smoke from January’s Eaton Fire. Photo by Joel Angel Juarez for CalMatters
Christine Dougherty (right) testifies in support of Senate Bill 363, which would hold health care plans more accountable, at the Senate Committee on Health at the Capitol Annex Swing Space in Sacramento on April 9, 2025. Photo by Fred Greaves for CalMatters

And lastly: Trump targets CA’s climate laws

The Chevron refinery in Richmond on Feb. 21, 2024. Photo by Loren Elliott for CalMatters

Trump ordered his attorney general to move against state climate programs that clash with his energy agenda. CalMatters’ Alejandro Lazo and video strategy director Robert Meeks have a video segment on how this could affect California’s landmark cap and trade program as part of our partnership with PBS SoCal. Watch it here.

SoCalMatters airs at 5:58 p.m. weekdays on PBS SoCal.

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California Voices

CalMatters columnist Dan Walters: The Legislature is considering bills that would fine oil companies for climate disasters, but if they’re signed into laws, corporations can pass those costs to customers.

Cutting social safety net services during economic uncertainty only worsens inequality, and state lawmakers must protect California’s most vulnerable as they hammer out a budget plan, writes Chris Hoene, executive director of the California Budget & Policy Center.

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Other things worth your time:

Some stories may require a subscription to read.

CA lawmakers are bracing for $10B budget hole — without federal cuts // Politico

CA and other states sue Trump administration over wind energy // The San Diego Union-Tribune

CA libraries spared, for now, from Trump cuts // San Francisco Chronicle

CA gubernatorial candidates address Israel-Palestinian conflict // Los Angeles Times

CA Sen. Weber Pierson leans into her medical training in fight for health safety net // California Healthline

CA snowpack is reaching peak melt. Here’s why // San Francisco Chronicle

America’s largest cities, including SF, are quietly sinking // KQED

More than 100 schools in Stanislaus County face pesticide risks. What can be done? // The Modesto Bee

Fresno schools hold ethnic graduation ceremonies despite attempted federal ban // The Fresno Bee

Edison electric tower at center of Eaton Fire investigation is dismantled and removed for testing // Los Angeles Times

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