Rocky Mountain Retail Management, LLC v. City of Northglenn Ex Rel. City Council

2017 CO 33, 393 P.3d 533, 2017 WL 1450103
CourtSupreme Court of Colorado
DecidedApril 24, 2017
DocketSupreme Court Case 15SA215
StatusPublished
Cited by2 cases

This text of 2017 CO 33 (Rocky Mountain Retail Management, LLC v. City of Northglenn Ex Rel. City Council) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rocky Mountain Retail Management, LLC v. City of Northglenn Ex Rel. City Council, 2017 CO 33, 393 P.3d 533, 2017 WL 1450103 (Colo. 2017).

Opinion

JUSTICE MÁRQUEZ

delivered the Opinion of the Court.

¶1 Rocky Mountain Retail Management, LLC, d/b/a Rocky Mountain High, filed an application for a license to operate a medical marijuana center in the City of Northglenn. The Northglenn City Council, acting as the City’s medical marijuana local licensing authority, denied Rocky Mountain’s application after receiving evidence at two public hearings. Rocky Mountain sought judicial review of the City’s decision in the distinct court, arguing that the denial was not based on substantial evidence in the record and was therefore arbitrary and capricious and an abuse of discretion. Rocky Mountain also asked the district court to declare certain licensing provisions of the Northglenn City Code unconstitutionally vague, including section 18-14-7(h), which sets forth factors a local licensing authority may consider before approving or denying a medical marijuana center license. The district court ruled that section 18-14-7(h) is unconstitutionally vague, and that the City’s denial of the license in reliance on that invalid provision was arbitrary and capricious. The City appeals these rulings.

¶2 Section 18-14-7(h) of the Northglenn City Code, which contains language identical to a provision in the Colorado Medical Marijuana Code, permits the local licensing authority to consider the “number, type, and availability” of existing medical marijuana facilities before approving or denying an application for a local license. We are asked to decide whether section 18-14-7(h) is imper-missibly vague. We are also asked to determine whether the City’s decision to deny Rocky Mountain’s application was supported by substantial evidence. Because the phrase “number, type, and availability” in section 18-14-7(h) provides sufficient notice to applicants and reasonably constrains the exercise of the City’s discretion, we hold that section 18-14-7(h) is not void for vagueness. We further hold that the City’s decision to deny Rocky Mountain’s license application was supported by substantial evidence in the record, and therefore was not arbitrary and capricious.

¶3 To provide background for our analysis, we first explain the framework for medical marijuana licensing at the state and local level and then provide the factual and procedural history of this case. We then consider the vagueness doctrine and its applicability to the licensing framework at issue here and hold that the district court erred in concluding that the Northglenn Code provision was unconstitutionally vague. Finally, we consider the City’s decision to deny Rocky Mountain’s license application and conclude that the decision was supported by substantial evidence. Accordingly, we reverse the judgment of the district court.

I. Background

¶4 In 2010, the General Assembly enacted the Colorado Medical Marijuana Code, sec *536 tions 12-43.3-101 to -1102, C.R.S. (2016), which sets forth “the exclusive means by which manufacture, sale, distribution, and dispensing of medical marijuana may occur in the state of Colorado.” § 12-43.S-103(e). 1 The Medical Marijuana Code authorizes local governments to prohibit the operation of medical marijuana centers or to adopt licensing standards and requirements that may be in addition to, or more restrictive than, the standards set forth in state law. See §§ 12-43.3-301(2)(b), -310(1). The local governing body may serve as the local licensing authority or designate an authority to serve this role. § 12-43.3-104(5).

¶5 A medical marijuana center must obtain licensing approval from both the state and local licensing authorities, and the denial of an application by a local licensing authority shall be considered a basis for the state licensing authority to revoke any state-issued license. §§ 12-43.3-305(2), -310(2). Licensing decisions made by the state and local licensing authorities are subject to judicial review under section 24-4-106, C.R.S. (2016), of Colorado’s Administrative Procedure Act (“state APA”). § 12-43.3-801.

¶6 To implement the provisions of the Medical Marijuana Code, the City of North-glenn adopted Article 14 of the Northglenn Code, sections 18-14-1 to -44. Northglenn, Colo., Code § 18-14-2 (2017). Under the Northglenn Code, applicants for a license to operate a medical marijuana facility must submit an application and fee to the City showing that they meet several basic requirements and are not otherwise prohibited from receiving a license under the North-glenn Code. 2 See id. § 18-14-7(a), (e). After the City receives an application for a new license, the local licensing authority must schedule a public hearing on the application and must disclose the findings of its preliminary investigation regarding the application! in advance of that hearing. Id § 18-14-7(0-(g).

¶7 Relevant here, section 18-14-7(h) of the Northglenn Code contains language identical to section 12-43.3-303(2) of the Medical Marijuana Code. This language describes the information the local licensing authority may consider before entering a decision approving or denying an application for a local license, including the “number, type, and availability” of existing medical marijuana centers located nearby:

Before entering a decision approving or denying the application for a local license, the local licensing authority may consider, except where this Article specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts pertinent to the type of license for which application has been made, including the number, type and availability of medical marijuana centers, optional premises cultivation operations, or medical marijuana-infused products manufacturers located in or near the premises under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed.

Northglenn, Colo., Code § 18-14-7(h) (2017); § 12-43.3-303(2) (emphases added). 3 As noted *537 by the Colorado Municipal League in its amicus brief, other Colorado municipalities have adopted local licensing ordinances derived from section 12-43.3-303(2) that similarly permit consideration of the “number, type, and availability” of existing marijuana businesses. 4 With this legal framework in mind, we turn to facts of this case.

II. Facts and Procedural History

¶8 In November 2013, Rocky Mountain submitted an application to the City of Northglenn for a medical marijuana center license. The City issued a preliminary report finding that the application met preliminary requirements and that Rocky Mountain was eligible to operate as a medical marijuana center subject to, among other things, a public hearing before the City Council (acting as the Northglenn Marijuana Licensing Authority).

¶9 At the hearing in January 2014, the City Council heard evidence regarding Rocky Mountain’s application for a medical marijuana center license under the criteria set forth in the Medical Marijuana Code and the Northglenn Code.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

HCA-HealthONE v. Colo. Dept. of Labor and Employment
2020 COA 52 (Colorado Court of Appeals, 2020)
Gessler v. Smith
2018 CO 48 (Supreme Court of Colorado, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
2017 CO 33, 393 P.3d 533, 2017 WL 1450103, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rocky-mountain-retail-management-llc-v-city-of-northglenn-ex-rel-city-colo-2017.