3 Sl v. State

CourtCourt of Appeals of Arizona
DecidedOctober 17, 2024
Docket1 CA-CV 22-0247
StatusPublished

This text of 3 Sl v. State (3 Sl v. State) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
3 Sl v. State, (Ark. Ct. App. 2024).

Opinion

IN THE ARIZONA COURT OF APPEALS DIVISION ONE

3 SL FAMILY, LLC, Plaintiff/Appellee/ Cross-Appellant,

v.

STATE OF ARIZONA, et al., Defendants/Appellants/ Cross-Appellees.

No. 1 CA-CV 22-0247

FILED 10-17-2024

Appeal from the Superior Court in Maricopa County No. CV2016-010461 The Honorable Jay R. Adleman, Judge

REVERSED

COUNSEL

May, Potenza, Baran & Gillespie, P.C., Phoenix By Jesse R. Callahan, Andrew S. Lishko, Irania Fimbres-Ruiz Counsel for Plaintiff/Appellee/Cross-Appellant 3 SL Family, LLC

Sherman & Howard L.L.C., Phoenix By Gregory W. Falls, Matthew A. Hesketh Counsel for Defendants/Appellants/Cross-Appellee State of Arizona, the Arizona Department of Health Services, and Don Herrington 3 SL et al. v. STATE et al. Opinion of the Court

OPINION

Chief Judge David B. Gass delivered the opinion of the court, in which Judge Brian Y. Furuya joined. Judge Andrew M. Jacobs dissented.

G A S S, Chief Judge:

¶1 The dispute arises out of the award in 2016 of a medical marijuana dispensary registration certificate under the Arizona Medical Marijuana Act. The dispute requires us to decide whether two phrases in the Act—“a public or private school” and “any preschool or primary or secondary school”—have the same meaning. See A.R.S. §§ 36-2804.B.1(b)(ii) (first phrase), -2802.B.2 (second). The Act does not define the terms “school” or “preschool.”

¶2 Plaintiff 3SL Family, LLC filed this litigation challenging the 2016 award, arguing the two phrases within different sections of the Act have the same meaning. The superior court agreed. Defendants the State of Arizona, the Arizona Department of Health Services, and Jennie Cunico, the Department’s Cabinet Executive Officer and Executive Deputy Director (collectively, the Department), disagreed and appealed the superior court’s judgment.

¶3 Because statutes mean what they say, we conclude the two phrases do not have the same meaning and the two preschools at issue here are not “a public or private school” under the Act. A.R.S. § 36-2804.B.1(b)(ii). We thus reverse the superior court’s summary judgment in 3SL’s favor. As a result, we need not address 3SL’s cross- appeal.

FACTUAL AND PROCEDURAL HISTORY

I. Arizona’s voters enacted the Act, and the Department established enabling rules as prescribed by the Act.

¶4 In 2010, Arizona’s voters passed the Act, mandating the Department administer a medical marijuana program. White Mountain Health Ctr., Inc. v. Maricopa Cnty., 241 Ariz. 230, 233 ¶ 3 (App. 2016). See generally A.R.S. §§ 36-2801 to -2822. The Department monitors and regulates the licensing of medical marijuana dispensaries and laboratories. See A.R.S.

2 3 SL et al. v. STATE et al. Opinion of the Court

§ 36-2804. Under the Act, a nonprofit entity seeking to operate a dispensary must apply for and obtain a dispensary registration certificate from the Department. A.R.S. § 36-2804.A–B. And the Department must not issue a certificate to a proposed dispensary or laboratory if it is “within five hundred feet of a public or private school existing before the date of” the application. A.R.S. §§ 36-2804.B.1(b)(ii); -2804.07.B.1(b)(ii).

¶5 The Department established rules regulating the certificate allocation process. See Arizona Administrative Code (A.A.C.) R9-17-303. Based on the statutory 500-feet limit, the Department adopted a rule requiring it to deny an application proposing a dispensary location “within 500 feet of a private school or a public school that existed before the date the dispensary submitted the initial dispensary registration certificate application.” A.A.C. R9-17-322.A.1.

II. During the 2016 application period, the Department awarded a certificate to 3SL’s competitor.

¶6 During the 2016 application period, the Department determined three applications were substantively complete and compliant for licensure in the relevant geographic area. 3SL was one of the three qualified applicants. The Department followed A.A.C. R9-17-303’s priority scheme and the applicable selection process, and it awarded the certificate to another of the applicants—what we call here the winning applicant. See A.A.C. R9-17-303.B.4.

¶7 The winning applicant proposed a dispensary location within 500 feet of two licensed child-care facilities. Though the two facilities called themselves “preschools,” Arizona does not license preschools. During the application process, the Department received a complaint alleging the winning applicant’s proposed dispensary location was within 500 feet of two “schools.” The Department investigated and determined the alleged “schools” were, in fact, preschools and thus not schools under the Act.

III. 3SL sued the Department.

¶8 In December 2016, 3SL filed a statutory special action alleging the Department erred because the winning applicant’s proposed dispensary location violated the Act’s 500-foot limitation. During discovery, the Department investigated the two preschools. One offered weekly learning plans focused on reading, writing, art, science, and physical activity. The other offered curricula in mathematics, art, science, writing, and reading. Those curricula did not change the Department’s

3 3 SL et al. v. STATE et al. Opinion of the Court

analysis because the preschools did not meet the criteria to be considered schools under the Act.

¶9 The Department and 3SL cross-moved for summary judgment. The superior court denied the Department’s motion and granted 3SL’s motion in part, ruling the Department misapplied the law. The superior court found the preschools met Title 15’s definition of “private school” because the preschools were “nonpublic institution[s] where instruction is imparted.” A.R.S. § 15-101.21. The superior court denied 3SL’s claims for declaratory and other relief. In February 2022, more than five years after this matter began, the superior court entered an appealable judgment.

¶10 This court has jurisdiction over the Department’s timely appeal and 3SL’s timely cross-appeal under article VI, § 9, Constitution of Arizona, and A.R.S. §§ 12-120.21.A.1 and -2101.A.1.

ANALYSIS

¶11 Summary judgment is appropriate when “no genuine dispute as to any material fact” exists and “the moving party is entitled to judgment as a matter of law.” Ariz. R. Civ. P. 56(a); see also Orme Sch. v. Reeves, 166 Ariz. 301, 305 (1990). “This court reviews a grant of summary judgment de novo, viewing the facts and reasonable inferences in the light most favorable to the party opposing the motion and will affirm for any reason supported by the record, even if not explicitly considered by the superior court.” CK Fam. Irrevocable Tr. No. 1 v. My Home Grp. Real Est. LLC, 249 Ariz. 506, 508 ¶ 6 (App. 2020) (as amended).

¶12 This court reviews questions of statutory interpretation de novo. J.L.F. v. Ariz. Health Care Cost Containment Sys., 208 Ariz. 159, 161 ¶ 10 (App. 2004). A statute’s plain language guides its interpretation. See Ariz. Advoc. Network Found. v. State, 250 Ariz. 109, 114 ¶ 19 (App. 2020).

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3 Sl v. State, Counsel Stack Legal Research, https://law.counselstack.com/opinion/3-sl-v-state-arizctapp-2024.