California Primary Care Association, et al. v. Shirley N Weber, PH.D., et al.

District Court, N.D. California·Decided August 7, 2026·No. 3:26-cv-03837·Unknown

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF CALIFORNIA

CALIFORNIA PRIMARY CARE ASSO- Case No. 26-cv-03837-AGT CIATION, et al.,

Plaintiffs, ORDER ON MOTIONS TO DISMISS AND FOR PRELIMINARY v. INJUNCTION

SHIRLEY N WEBER, PH.D., et al., Re: Dkt. Nos. 28, 32, 33 Defendants.

Plaintiffs California Primary Care Association (CPCA) and Open Door Community Health Centers (Open Door) (together, Plaintiffs) move to enjoin defendant California Sec- retary of State Shirley N. Weber from placing an initiative on the November 2026 ballot. Dkt. 1 (complaint); dkt. 28 (motion for preliminary injunction).1 Weber moves to dismiss. Dkts. 31-1 & 33. Plaintiffs additionally named as defendants the real-parties-in-interest: Service Em- ployees International Union – United Healthcare Workers West, Shawna Brown, and Sean Fleming (collectively, Proponent Defendants). Dkt. 1. Proponent Defendants also move to dismiss. Dkt. 32. After hearing oral argument on July 31, 2026, the Court now grants the motions to

1 The California Hospital Association filed an amicus curiae brief in support of the motion for a preliminary injunction. Dkt. 36. The California Medical Association, California Acad- emy of Family Physicians, and the California Chapter of the American College of Emer- gency Physicians jointly filed an amicus curiae brief, also in support of the motion. Dkt. 37. dismiss and denies the motion for a preliminary injunction.2 I. Background Initiative No. 25-0008 (the Initiative) is also known as the “Clinic Funding Account- ability and Transparency Act.” Dkt. 1 ¶ 74. See also dkt. 28-1 at 7–14 (text of Initiative).3 It requires that clinics, which include community health centers, annually report a mission

spend ratio to the California Registry of Charities and Fundraisers. Dkt. 1 ¶ 74; dkt. 28-1 at 8.4 The mission spend ratio is “the total amount a health center spends on activities that accomplish each center’s exempt purpose,” divided by the clinic’s total revenue. Dkt. 1 ¶ 75; dkt. 28-1 at 8. The California Attorney General may issue guidance regarding how to report the total amount spent on exempt purpose activities and total revenue. Dkt. 28-1 at 9. Clinics must spend 90% of their revenue on activities that accomplish their purpose. Dkt. 1 ¶ 76; dkt. 28-1 at 11. If a clinic does not spend 90%, then the California Department of Public Health (DPH) shall levy a penalty “equal to the difference between the amount the

clinic spent on mission-directed expenses and 90 percent of the clinic’s total revenue.” Dkt. 28-1 at 11; see also dkt. 1 ¶ 76; Under certain circumstances, DPH may issue a waiver “providing a temporary pause of the 90 percent requirement or for an alternative mission spend ratio requirement . . . .”

2 Citations to argument in this order refer to time stamps from the audio recording of the Court’s July 31, 2026, hearing. Upon request, the Court can provide access to the recording. Any such requests should be filed on the Court’s docket. 3 Plaintiffs ask the Court to judicially notice the Initiative, filed at dkt. 28-1. The Court takes judicial notice of the text as it “can be accurately and readily determined from [a] source[ ] whose accuracy cannot reasonably be questioned.” Fed. R. Evid. 201(b)(2). Plaintiffs’ re- quests for judicial notice at dkt. 28-1 and dkt. 40-1 are otherwise denied; the Court didn’t rely on those materials. 4 References to page numbers correspond to the ECF page number at the top of each dock- eted page. Dkt. 28-1 at 11. The issuance of the waiver is “solely and exclusively within the authority of [DPH].” Id. II. Legal Standard Dismissal under Federal Rule of Civil Procedure 12(b)(1) is appropriate where a court lacks subject matter jurisdiction, for example, where a plaintiff lacks standing or brings

unripe claims. See Chandler v. State Farm Mut. Auto. Ins. Co., 598 F.3d 1115, 1121–22 (9th Cir. 2010). An Eleventh Amendment defense “‘is quasi-jurisdictional’ in nature and may be raised in either a Rule 12(b)(1) or 12(b)(6) motion.” Sato v. Orange Cty. Dep’t of Educ., 861 F.3d 923, 927 n.2 (9th Cir. 2017). III. The Eleventh Amendment Immunizes Secretary Weber Weber moves under Rule 12(b)(1), contending that she is entitled to Eleventh Amendment immunity. Dkt. 31-1. Plaintiffs disagree, arguing that this action is not barred pursuant to Ex parte Young. Dkt. 40. The Court now finds that Weber is immune from suit. “The Eleventh Amendment erects a general bar against federal lawsuits brought

against a state,” but “does not bar actions for prospective declaratory or injunctive relief against state officers in their official capacities for alleged violations of federal law.” Coal. to Defend Affirmative Action v. Brown, 674 F.3d 1128, 1133–34 (9th Cir. 2012). The latter are permitted under Ex parte Young. See Papasan v. Allain, 478 U.S. 265, 276–77 (1986). To determine whether Ex parte Young applies, a court “need only conduct a straight- forward inquiry into whether the complaint alleges an ongoing violation of federal law and seeks relief properly characterized as prospective.” Verizon Maryland, Inc. v. Public Service Comm’n of Maryland, 535 U.S. 635, 645 (2002) (cleaned up). The official sued must have some connection to the enforcement of the allegedly unconstitutional act. Coal. to Defend Affirmative Action, 674 F.3d at 1134. A. Ongoing Violations Weber argues that Plaintiffs fail to allege that Weber has engaged in any ongoing violation of federal law, indeed, that no violation of federal law is alleged. Dkt. 31-1 at 11. Without that allegation, Plaintiffs cannot overcome the Eleventh Amendment. Id.

Plaintiffs respond that Weber has statutory duties to advance the Initiative through California’s initiative process. Dkt. 40 at 17. Because Weber qualified the Initiative for the ballot, she is mandated to prepare statewide ballot materials. Id. Plaintiffs argue that the Initiative is unconstitutional, and therefore the exercise of Weber’s duties here constitutes an ongoing exercise of state authority enabling the enactment of an unconstitutional state initiative. Id. Plaintiffs aren’t arguing that the ballot qualification procedures violate federal law. See id. Instead, Plaintiffs argue that the Initiative itself is violative and that, by following the ballot initiative statutes (which are not accused), Weber is subject to suit. Such a suit can’t

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California Primary Care Association, et al. v. Shirley N Weber, PH.D., et al., (N.D. Cal. 2026).

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