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