National Association for Gun Rights, Inc. v. City Of San Jose

District Court, N.D. California·Decided September 30, 2022·No. 5:22-cv-00501·Unknown

Opinion

NATIONAL ASSOCIATION FOR GUN Case No. 22-cv-00501-BLF RIGHTS, INC., et al., ORDER GRANTING IN PART AND Plaintiffs, DENYING IN PART DEFENDANTS' v. [Re: ECF No. 36] CITY OF SAN JOSE, et al., Defendants. HOWARD JARVIS TAXPAYERS Case No. 22-cv-02365-BLF ASSOCIATION, et al., Plaintiffs, [Re: ECF No. 9] v.

Defendant.

On February 8, 2022, the City of San Jose City Council voted to approve the Reduction of Gun Harm – Liability Insurance Requirement and Gun Harm Reduction Fee (the “Ordinance”), requiring San Jose gun owners to maintain gun liability insurance and pay a mandatory annual fee to a designated gun harm reduction nonprofit. This ordinance has been challenged by two sets of plaintiffs, one led by the National Association for Gun Rights, Inc. (“NAGR Plaintiffs”) and the other by the Howard Jarvis Taxpayers Association (“HJTA Plaintiffs”). The Court previously denied NAGR Plaintiffs’ motion for preliminary injunction (“August 3 Order”). Now before the Court are Defendants’ motions to dismiss both Plaintiffs’ respective complaints. For the following reasons, the Court GRANTS IN PART and DENIES IN PART I. BACKGROUND A. The Ordinance The San Jose Ordinance at issue here is comprised of two primary obligations: the requirement for gunowners to maintain liability insurance (the “Insurance Requirement”) and the payment of an annual fee to a nonprofit of the City’s designation (the “Fee Provision”). The Insurance Requirement obligates San Jose residents who own or possess a firearm to obtain a homeowner’s, renter’s, or gun liability insurance policy “covering losses or damages resulting from any accidental use of the Firearm.” First Am. Compl. Injunctive Relief, Declaratory Judgment, and Nominal Damages (“NAGR FAC”), Ex. K (“Ordinance”) § 10.32.210 (the “Insurance Requirement”), NAGR ECF No. 19.1 The Fee Provision requires San Jose gun owners to pay an Annual Gun Harm Reduction Fee (the “Fee”) to a Designated Nonprofit Organization (the “Nonprofit”), selected by the City Manager. Id. § 10.32.215, 10.32.235. The Fee amount will be established by City Council, and every dollar generated must be used by the Nonprofit to provide “services to residents of the City that own or possess a [f]irearm in the City, to members of their household, or to those with whom they have a close familial or intimate relationship.” Id. § 10.32.220(A). The Ordinance instructs the Nonprofit to spend the funds generated from the Fee exclusively for programs and initiatives designed to “(a) reduce the risk or likelihood of harm from the use of firearms in the City of San Jose, and (b) mitigate the risk of physical harm or financial, civil, or criminal liability that a San Jose firearm owner or her family will incur through her possession of firearms.” Id. § 10.32.220(C). Proceeds generated by the Fee may not be used for litigation, political advocacy, or lobbying activities nor may the City “specifically direct how the monies from the Gun Harm Reduction Fee are expended.” Id. §§ 10.32.220(B) – (C). In addition to obtaining gun liability insurance and paying the annual Fee, San Jose 1 ECF entries in the NAGR Plaintiffs’ docket, i.e., Case No. 22-cv-00501-BLF, will be referred to as “NAGR ECF No.” Likewise, ECF entries in the HJTA Plaintiffs’ docket will be referred to as residents must also maintain City-designated proof of compliance. Id. § 10.32.230. The Ordinance sets out a limited number of exemptions from its obligations, including a “financial hardship” exemption, the criteria for which will be promulgated by the City Manager. Id. §§ 10.32.225, 10.32.235(A)(4). Violations of the Ordinance are punishable by administrative citation with fines to be established by City Council. Id. § 10.32.240. Although the Ordinance would permit the impoundment of any non-compliant person’s firearm to the extent allowed by law (id. § 10.32.245), the City admitted in its briefing that the section is inoperable because “[t]here is currently no lawful basis to impound firearms under state or federal law.” Mot. Dismiss [NAGR] Pls.’ First Am. Compl. (“Mot. NAGR”), at 5-6, NAGR ECF No. 36; see also Mot. Dismiss [HJTA] Pls.’ Compl. (“Mot. HJTA”), at 6, HJTA ECF No. 9. The Ordinance authorizes the City Manager to promulgate certain implementing regulations, including the designation of the Nonprofit, additional guidelines on and audits of the use of the Fee, and establishing the criteria for the “financial hardship” exemption. Id. § 10.32.235. At the time the NAGR and HJTA complaints were filed and as of the date of this Order, the City Council and City Manager have not yet established the amount of the Fee, the amount of any administrative fines, or the identity of the Nonprofit. Mot. NAGR 8-9; see also Defs.’ Corrected Status Report 1-2, NAGR ECF No. 78, Aug. 17, 2022 (“[T]he City has not yet set a date for when enforcement of the Fee requirements will begin, nor has it designated the nonprofit organization to which the Fee must be paid.”). B. Procedural History i. National Association for Gun Rights, Inc. (“NAGR”), et al. Plaintiff National Association for Gun Rights, Inc. (“NAGR”) describes itself as a nonprofit grassroots organization dedicated to defending the Second Amendment right to keep and bear arms. NAGR FAC ¶ 13. Its members include San Jose residents, such as Plaintiff Mark Sikes, who legally own guns and would be subject to the Ordinance if it were to go into effect. Id. ¶ 14. NAGR Plaintiffs name the City of San Jose, Jennifer Maguire in her official capacity as City suit. Id. ¶¶ 15-17. NAGR Plaintiffs filed their original complaint on January 25, 2022, the same day the City passed the first reading of the Ordinance. See NAGR ECF No. 1. They challenge both the Insurance Requirement and the Fee Provision in five claims for violations of the First and Second Amendment to the U.S. Constitution, the California Constitution, and the City of San Jose’s City Charter, as well as a sixth claim under the Declaratory Judgment Act. NAGR FAC ¶¶ 82-148. On March 8, 2022, NAGR Plaintiffs moved for a preliminary injunction against the enforcement of the Ordinance, which both parties fully briefed by March 29, 2022. NAGR ECF Nos. 25, 28, 32. Shortly thereafter, the City filed the instant motion to dismiss NAGR Plaintiffs’ First Amended Complaint on April 8, 2022, which was fully briefed by April 29, 2022. NAGR ECF Nos. 36, 46, 50. On June 23, 2022 (after both motions were briefed but before hearing on either), the United States Supreme Court issued its opinion in New York State Rifle & Pistol Ass’n., Inc. v. Bruen, 142 S. Ct. 2111 (2022), expressly rejecting the “two-step” means-end scrutiny framework that Circuit Courts of Appeals and the parties had used to analyze Second Amendment challenges. After requesting and receiving the parties’ supplemental briefings on the application of Bruen (NAGR ECF Nos. 64-65) and hearing oral arguments, the Court denied NAGR Plaintiffs’ motion for preliminary injunction on August 3, 2022. NAGR ECF No. 72. ii. Howard Jarvis Taxpayers Association (“HJTA”), et al. Plaintiff Howard Jarvis Taxpayers Association (“HJTA”) is a nonprofit public benefit corporation that engages in civil litigation to ensure constitutional taxation in California. Notice of Removal, Ex. A (“HJTA Compl.”), HJTA ECF No. 1. Plaintiffs Silicon Valley Taxpayers Association, Inc. (“SVTA”) and Silicon Valley Public Accountability Foundation (“SVPAF”) are also nonprofit public benefit corporations comprised of Santa Clara County residents, seeking to reduce taxes and monitor Santa Clara County public officials, respectively. Id. ¶¶ 2-3. All three associations’ members include San Jose gun owners who would be subject to the Fee Provision. Id. ¶¶ 1-3. In addition to the associational plaintiffs, the suit is also brought by individual “HJTA Plaintiffs”), both of whom are San Jose residents who legally own firearms. Id. ¶¶ 4-5. On March 7, 2022, the HJTA Plaintiffs filed their “Complaint to Inv

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National Association for Gun Rights, Inc. v. City Of San Jose, (N.D. Cal. 2022).

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