Southern Pacific Transportation Co.

18 Cal. 3d 308 (1976), 556 P.2d 289

The Court reversed the Commission’s determination that Section 1202.3 was unconstitutional.  The Court concluded that while the Commission had the power to declare statutes unconstitutional, it had incorrectly ruled that Section 1202.3 was unconstitutional.  Eighteen months following the issuance of this decision, and in response to it, the voters enacted Section 3.5 of Article III of the California Constitution, which prohibited the Commission and other administrative agencies from declaring statutes to be unconstitutional or preempted by federal law unless an appellate court had first so held.  See Burlington Northern at Para. 28.  See also footnote 27, supra.

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