New York Statewide Coalition of Hispanic Chambers of Commerce v. New York City Department of Health & Mental Hygiene

110 A.D.3d 1, 970 N.Y.S.2d 200

This text of 110 A.D.3d 1 (New York Statewide Coalition of Hispanic Chambers of Commerce v. New York City Department of Health & Mental Hygiene) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York Statewide Coalition of Hispanic Chambers of Commerce v. New York City Department of Health & Mental Hygiene, 110 A.D.3d 1, 970 N.Y.S.2d 200 (N.Y. Ct. App. 2013).

Opinion

OPINION OF THE COURT

Renwick, J.

In this hybrid CPLR article 78/declaratory judgment proceeding, we are called upon to decide the constitutionality of the New York City Board of Health’s Sugary Drinks Portion Cap Rule. The Sugary Drinks Portion Cap Rule, dubbed the “Soda Ban,” prohibits New York City restaurants, movie theaters and [4]*4other food service establishments from serving sugary drinks in sizes larger than 16 ounces. Like Supreme Court, we conclude that in promulgating this regulation the Board of Health failed to act within the bounds of its lawfully delegated authority. Accordingly, we declare the regulation to be invalid, as violative of the principle of separation of powers.

Factual and Procedural Background

We begin with a background of the regulatory agency and the challenged regulation. Pursuant to New York City Charter § 556, respondent New York City Department of Health and Mental Hygiene (DOHMH), an administrative agency in the executive branch of the City government, is charged with regulating and supervising all matters affecting health in the City, including conditions hazardous to life and health, by, among other things, regulating the food and drug supply of the City, and enforcing provisions of the New York City Health Code.

Respondent New York City Board of Health (Board of Health), established by New York City Charter § 553, is comprised of 11 individuals with relevant experience who were appointed by the Mayor. Pursuant to New York City Charter § 558, the Board of Health is empowered to amend the Health Code with respect to all matters to which the power and authority of DOHMH extend. This includes article 81 of the Health Code (24 RCNY), which sets forth rules regulating City “food service establishments” (FSEs). The Health Code defines an FSE as “a place where food is provided for individual portion service directly to the consumer whether such food is provided free of charge or sold, whether consumption occurs on or off the premises or is provided from a pushcart, stand or vehicle” (NY City Health Code [24 RCNY] § 81.03 [s]). Pursuant to a 2010 Memorandum of Understanding (MOU) between the City’s DOHMH and the State’s Department of Agriculture and Markets, an FSE is subject to inspection by a local health department only if it generates 50% or more of its total annual dollar receipts from the sale of food for consumption on the premises or ready-to-eat for off-premises consumption.

On May 30, 2012, Mayor Michael Bloomberg announced the Portion Cap Rule, a proposed amendment to article 81, that would require FSEs to cap at 16 ounces the size of cups and containers used to offer, provide and sell sugary beverages. The Mayor’s stated purpose of the rule was to address rising obesity rates in the City. On June 1, 2012, 14 members of the New York [5]*5City Council wrote to the Mayor opposing the proposal and insisting that, at the very least, it should be put before the Council for a vote. This did not occur.

Instead, on June 12, 2012, DOHMH presented to the Board of Health the proposed amendment to article 81. The Board voted to allow DOHMH to publish the proposal in the City Record, and thereby provide the public with an opportunity to comment on the proposal in advance of a public hearing. On July 24, 2012, a public hearing was held on the Portion Cap Rule. Of the more than 38,000 written comments received prior to the scheduled hearing, approximately 32,000 (84%) supported the proposal and approximately 6,000 (16%) opposed it. In addition, a petition opposing the proposal, signed by more than 90,000 people, was submitted by New Yorkers for Beverage Choice, a coalition of individuals, businesses, and community organizations.

DOHMH proposed no changes to the initial proposal that was made public in May. Instead, DOHMH provided the Board with a memorandum, dated September 6, 2012, summarizing and responding to the testimony and written comments (DOHMH, Bureau of Chronic Disease Prevention & Tobacco Control, Summary and Response to Public Hearing and Comments Received Regarding Amendment of Article 81 of the New York City Health Code to Establish Maximum Sizes for Beverages Offered and Sold in Food Service Establishments, Sept. 6, 2012, available at http://www.nyc.gov/html/doh/downloads/pdf/boh/article81response-to-comments.pdf). In the memorandum, which supported the promulgation of the Portion Cap Rule, DOHMH pointed out, among other things, that “[t]he scientific evidence supporting associations between sugary drinks, obesity, and other negative health consequences is compelling” (id. at 3). In addition, DOHMH pointed out that the proposed rule would have a “material impact” on consumption of sugary drinks because “[platterns of human behavior indicate that consumers gravitate towards the default option” (id. at 6). Thus, DOHMH concluded “If the proposal is adopted, customers intent upon consuming more than 16 ounces would have to make conscious decisions to do so” (id.). With regard to the critics’ assertion that the rule would result in economic hardship for certain businesses, the agency responded that the freedom to sell large sugary drinks “means little compared to the necessity to protect New Yorkers from the obesity epidemic” (id. at 8 [emphasis omitted]).

[6]*6On September 13, 2012, the Board of Health met for the board members to cast their votes on the Portion Cap Rule. Before the vote, both the Commissioner of Health and several board members echoed DOHMH’s comments about the Portion Cap Rule, as expressed in the aforementioned memorandum. In the end, the Board voted to adopt the Portion Cap Rule, and a “Notice of Adoption of an Amendment (§ 81.53) to Article 81 of the . . . Health Code” was published in the City Record on September 21, 2012, to go into effect on March 12, 2013 (City Rec, Sept. 21, 2012 at 2602).

As adopted, the Portion Cap Rule limited the maximum self-service cup or container size for sugary drinks to 16 fluid ounces for all FSEs within New York City, and defined “sugary drink” as a nonalcoholic carbonated or noncarbonated beverage that is sweetened by the manufacturer or establishment with sugar or another caloric sweetener, has greater than 25 calories per 8 fluid ounces of beverage, and does not contain more than 50% of milk or milk substitute by volume as an ingredient (NY City Health Code [24 RCNY] § 81.53).1 The rule thus targeted non-diet soft drinks, sweetened teas, sweetened black coffee, hot chocolate, energy drinks, sports drinks, and sweetened juices, but contained carve-outs for alcoholic beverages, milkshakes, fruit smoothies and mixed coffee drinks, mochas, lattes, and 100% fruit juices. In addition, DOHMH announced that the Portion Cap Rule would apply only to those FSEs subject to the agency’s inspections under the MOU. As a result, the ban applies to restaurants, delis, fast-food franchises, movie theaters, stadiums and street carts, but not to grocery stores, convenience stores, corner markets, gas stations and other similar businesses.

On October 12, 2012, before the rule went into effect, petitioners commenced this action seeking to invalidate the Portion Cap Rule.2 Petitioners alleged that the Board’s adoption of the Portion Cap Rule was ultra vires in that it usurped the role of the City Council and imposed social policy by executive fiat, contending that the Board “may not bypass the legislature, under the guise of public health, and make fundamental policy [7]

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Bluebook (online)
110 A.D.3d 1, 970 N.Y.S.2d 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-statewide-coalition-of-hispanic-chambers-of-commerce-v-new-york-nyappdiv-2013.