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Rocky Mountain Retail Management, LLC v. City of Northglenn Ex Rel. City Council
2017 CO 33
| Colo. | 2017
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Background

  • Rocky Mountain Retail Management ("Rocky Mountain") applied in Nov. 2013 for a medical marijuana center license in Northglenn; the City Council (local licensing authority) denied the application after two public hearings.
  • Northglenn Code § 18-14-7(h) (identical to Colo. Medical Marijuana Code § 12-43.3-303(2)) permits the licensing authority to consider the "number, type, and availability" of existing marijuana facilities near the proposed premises.
  • At the hearings Rocky Mountain argued its products/strains were unique and presented testimony about long wait times at a nearby facility; existing licensees disputed uniqueness and reported short wait times.
  • The City concluded the existing number, type, and availability of outlets adequately served the community and denied the license; Rocky Mountain sought judicial review under the state APA.
  • The district court held § 18-14-7(h) unconstitutionally vague and invalidated it, and concluded the denial was therefore arbitrary and capricious. Northglenn appealed to the Colorado Supreme Court.

Issues

Issue Rocky Mountain's Argument Northglenn's Argument Held
Whether § 18-14-7(h) is unconstitutionally vague The phrase "number, type, and availability" is too indefinite to give applicants notice or constrain discretion The phrase gives commonsense guidance and objective factors; permissive wording ("may consider") does not render it void Not vague — provides sufficient notice and reasonably constrains discretion
Whether the City improperly applied a "need" or "needs of the neighborhood" standard The City used a "need" inquiry akin to liquor licensing (not in the marijuana code) and thus applied an improper standard Consideration of "need" is a permissible, reasonable way to apply "number, type, and availability," and applicants had notice and opportunity to present evidence City properly considered "need" as tied to the listed factors; not improper
Whether the denial was supported by substantial evidence (arbitrary/capricious review) Record did not show insufficiency of existing facilities; Rocky Mountain argues denial was arbitrary City considered witness credibility, wait times, number/type/availability, and explained findings Denial supported by substantial evidence when record viewed as a whole; not arbitrary or capricious

Key Cases Cited

  • Vill. of Hoffman Estates v. Flipside, Hoffman Estates, Inc., 455 U.S. 489 (framework for vagueness analysis; higher specificity when First Amendment interests implicated)
  • Broadrick v. Oklahoma, 413 U.S. 601 (vagueness doctrine limits; statute must give persons of ordinary intelligence fair warning)
  • Watso v. Colorado Dep’t of Social Servs., 841 P.2d 299 (Colo. 1992) (vagueness doctrine and requirement that laws not force guesswork)
  • Regency Servs. Corp. v. Bd. of Cty. Comm’rs of Adams Cty., 819 P.2d 1049 (Colo. 1991) (permissive language like "including but not limited to" does not render a provision unconstitutionally vague)
  • Ross v. Fire & Police Pension Ass’n, 713 P.2d 1304 (Colo. 1986) (substantial-evidence standard for judicial review of administrative decisions)
Read the full case

Case Details

Case Name: Rocky Mountain Retail Management, LLC v. City of Northglenn Ex Rel. City Council
Court Name: Supreme Court of Colorado
Date Published: Apr 24, 2017
Citation: 2017 CO 33
Docket Number: Supreme Court Case 15SA215
Court Abbreviation: Colo.