A Victory for Local Voters and SSB Taxes

Court Rules in Santa Cruz Sugary Drink Tax Preemption Case

FOR IMMEDIATE RELEASE 
June 30, 2026 

Oakland, CA: In a victory for public health and for local residents’ ability to enact health-promoting laws and policies, Judge Stephen Acquisto of the Sacramento County Superior Court issued a ruling on Monday, June 29, in California Grocers Association, et al. v. City of Santa Cruz, et al. This pivotal case decides the fate of Santa Cruz’s voter-approved 2024 sugary drink tax, Measure Z, and carries significant implications for the rights of local voters and for other California cities looking to vote on sugary drink taxes. Sugary drink taxes are an evidence-based method for improving the health of community members who experience disproportionate chronic disease rates linked with sugary drink consumption as well as with harmful beverage industry sales and marketing practices. 

This decision affirms that state law does not preempt home rule authority of California charter cities to enact sugary drink taxes that support community well-being. It is also a significant blow to corporate beverage industry tactics that seek to strip power away from local communities. 

“The ruling in California Grocers Association v. Santa Cruz affirms what we know to be true — that local residents are best positioned to make policy choices about the health and well-being of their own communities,” said Sabrina Adler, vice president of law at ChangeLab Solutions. “California law supports that principle, notwithstanding the beverage industry’s attempts to undermine it. We look forward to continuing to support localities’ efforts to promote health and advance equity.” 

Though it may be appealed, this victory comes on the heels of several years of litigation related to local authority to enact sugary drink taxes in California. ChangeLab Solutions has been an avid supporter of this effort to preserve local authority to enact health-promoting policies. Several other California cities have been watching the case closely to determine whether they can introduce new local sugary drink taxes of their own. 

ChangeLab Solutions will continue to monitor the outcomes associated with this decision and provide public health advocates with the legal tools they need to defend local authority and build healthier, more equitable communities. For additional information on Measure Z, read our statement from 2024
 

Media Contact:
Sabrina Adler
Vice President of Law
sadler@changelabsolutions.org
510-302-3380, ext. 730 

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ChangeLab Solutions is a nonpartisan nonprofit organization that uses the tools of law and policy to advance health equity. We partner with communities across the nation to improve health and opportunity by changing harmful laws, policies, and systems. Our interdisciplinary team works with community organizations, governments, and local institutions to design and implement equitable and practical policy solutions to complex health challenges. For more information, visit changelabsolutions.org. Follow ChangeLab Solutions on LinkedIn, Bluesky, Facebook, Instagram, and YouTube

6/30/2026

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