SAFE LIFE CAREGIVERS et al., Plaintiffs and Appellants, v. CITY OF LOS ANGELES, Defendant and Respondent.
No. B257809
Second Dist., Div. Eight
Jan. 13, 2016
243 Cal. App. 4th 1029
RUBIN, J.
[CERTIFIED FOR PARTIAL PUBLICATION*]
Law Offices of Stanley H. Kimmel and Stanley H. Kimmel for Plaintiffs and Appellants.
Michael N. Feuer, City Attorney, Terry P. Kaufmann-Macias, Assistant City Attorney, and Steven M. Blau, Deputy City Attorney, for Defendant and Respondent.
OPINION
RUBIN, J.—In this appeal we reiterate what other appellate courts, including our Supreme Court, have already held—there is no constitutional or statutory right to possess, cultivate, distribute, or transport marijuana for medical purposes. (City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal.4th 729, 739 [156 Cal.Rptr.3d 409, 300 P.3d 494] (Riverside).) We apply that rule of law to appellants’ challenge to Proposition D (Prop. D), the current medical marijuana ordinance of the City of Los
By way of further introduction, this is the first of two related appeals challenging the medical marijuana ordinances in the City. In this appeal, nearly 20 medical marijuana collectives and a handful of medical marijuana patients, who are officers of the collectives, bring numerous challenges to Prop. D.1 None of the appellants’ arguments relies on any facts specific to any individual appellant; we therefore consider their arguments collectively. The sole defendant is the City. The City prevailed on a demurrer to appellants’ first amended complaint. Appellants seek leave to amend their complaint to raise a previously unpled challenge to Prop. D. We conclude that Prop. D was a properly enacted ordinance, reject all of appellants’ other arguments, and affirm.
FACTUAL AND PROCEDURAL BACKGROUND
Appellants’ principal charge on appeal is a multifaceted attack on the process by which Prop. D was enacted. They also challenge the substantive provisions of the ordinance, particularly as those terms relate to registration under the City‘s prior medical marijuana ordinances. The factual history of this case is, as it turns out, the legal history of medical marijuana in Los Angeles.
A. State Statutes—CUA and MMPA
The history of legalizing medical marijuana in California begins with the Compassionate Use Act of 1996 (CUA) enacted by statewide initiative. The CUA is codified at
In 2003, the Legislature followed the CUA with the Medical Marijuana Program Act (MMPA). (
Together, the CUA and MMPA constitute “limited exceptions to the sanctions of this state‘s criminal and nuisance laws in cases where marijuana is possessed, cultivated, distributed, and transported for medical purposes.” (Riverside, supra, 56 Cal.4th at p. 739.) They have no effect on the federal ban on marijuana use. (Id. at p. 740.) Nor do they create a state statutory right to use, cultivate, or collectively cultivate medical marijuana. (Id. at p. 762; 420 Caregivers, LLC v. City of Los Angeles (2012) 219 Cal.App.4th 1316, 1342 [163 Cal.Rptr.3d 17] (420 Caregivers); County of Los Angeles v. Hill (2011) 192 Cal.App.4th 861, 869 [121 Cal.Rptr.3d 722] (Hill); People v. Urziceanu (2005) 132 Cal.App.4th 747, 773 [33 Cal.Rptr.3d 859].)
B. The City‘s First Attempt at Legislation—Interim Control Ordinance
In 2007, the City made its first attempt to regulate medical marijuana dispensaries, “[i]n response to citizen complaints and law enforcement concerns about the proliferation of storefront medical marijuana dispensaries within City limits.” (420 Caregivers, supra, 219 Cal.App.4th at p. 1326.) City Ordinance No. 179027 provided as a temporary measure that no “Medical Marijuana Dispensaries” could be established or operated within the City.
C. The City‘s Second Attempt—Grandfather Prior Registrant Ordinance
In 2010, the City passed its second attempt to regulate dispensaries. City Ordinance No. 181069 (Grandfather Prior Registrant Ordinance) was the City‘s attempt at a more permanent ordinance. It imposed regulations on medical marijuana collectives.3 It defined a “collective” as an “association, composed solely of four or more qualified patients . . . and designated primary caregivers . . . who associate at a particular location to collectively or cooperatively cultivate marijuana for medical purposes, in strict accordance with [the CUA and MMPA].” (City Mun. Code, former § 45.19.6.1.) The ordinance required all collectives to register, and facially capped the maximum number of collectives in the City at 70, to be proportionally distributed by population. (City Mun. Code, former § 45.19.6.2.) However, the ordinance provided that the number of collectives could in fact exceed 70, as it included a grandfather clause that allowed previously existing collectives to remain if they were, among other things, properly registered under the Interim Control Ordinance.4 It appeared that there were substantially more than 70 collectives in operation that could qualify under the grandfather clause; as such, if it had become fully operational, the Grandfather Prior Registrant Ordinance would likely have had the
D. The City‘s Third Attempt—The Grandfather/Lottery Ordinance
Many collectives brought suit against the City, challenging the terms of the Grandfather Prior Registrant Ordinance.5 The collectives sought a preliminary injunction, and the trial court concluded, among other things, that the Grandfather Prior Registrant Ordinance denied equal protection to collectives which had not registered under the Interim Control Ordinance. (420 Caregivers, supra, 219 Cal.App.4th at p. 1330.)
The City then enacted a third ordinance, as an urgency measure, to modify the Grandfather Prior Registrant Ordinance to respond to the trial court‘s ruling while the City‘s appeal of the preliminary injunction was pending. City Ordinance No. 181530 changed the grandfathering provision of the Grandfather Prior Registrant Ordinance to allow all collectives which had been in operation on or before September 14, 2007, to register for the right to participate in a lottery, from which 100 collectives would be chosen for inspection and, if all other requirements were satisfied, registration. Pursuant to the terms of the ordinance, all collectives that met the prerequisites for the lottery were required to register for it shortly after the ordinance became effective.6 We call this the “Grandfather/Lottery Ordinance.”
E. Appeal of the Injunction
The City appealed the preliminary injunction against the Grandfather Prior Registrant Ordinance, and, on July 3, 2012, we issued our opinion in 420 Caregivers reversing the preliminary injunction and upholding the original grandfathering provision of the Grandfather Prior Registrant Ordinance. (420 Caregivers, supra, 219 Cal.App.4th at pp. 1338–1339.) Specifically, we recognized that straightforward grandfathering provisions generally survive rational relation equal protection review, and we concluded that the further requirement of compliance with prior registration laws was a similarly valid basis on which to distinguish between businesses. (Ibid.) The case was not immediately final, however; review was granted on September 19, 2012, while the Supreme Court was considering, in Riverside, issues of state law preemption of local medical marijuana regulation. Ultimately, the Supreme Court would conclude that state law does not preempt local medical marijuana regulation, and upheld a city‘s total ban on collectives. (Riverside,
F. The City‘s Fourth Attempt—A Brief Ban
In July 2012, prior to Riverside and finality of 420 Caregivers, the City enacted City Ordinance No. 182190, which banned nearly all collectives. A referendary petition was brought to the City Council regarding the ordinance and, after considering comments, objections and proposals from the public, the City Council repealed the ban on October 9, 2012. (City Ord. No. 182286.) This particular ordinance has no effect on our disposition of the appeal. It is included only for historical completeness.
G. The Enactment of Prop. D
It was in this environment that Prop. D came to be. On January 29, 2013, some four months after the repeal of the prior ban on collectives, the City Council introduced, and on February 5, 2013, it passed, an ordinance calling a special election for a public vote on Prop D. (City Ord. No. 182443.) On May 21, 2013, the voters approved Prop. D by majority vote.
Prop. D enacted City Ordinance No. 182580, which repealed the existing sections of the municipal code relating to medical marijuana, and enacted new provisions. Under Prop. D, a “medical marijuana business” is defined as any “location where marijuana is cultivated, processed, distributed, and delivered, or given away to a qualified patient . . . or a primary caregiver.” (City Mun. Code, § 45.19.6.1, subd. A.) Prop. D then provides that it is “unlawful to own, establish, operate, use, or permit the establishment or operation of a medical marijuana business . . .” in the City. (City Mun. Code, § 45.19.6.2, subd. A.) The next section of Prop. D, however, provides an exception for medical marijuana businesses that meet a litany of requirements, the most important of which for our purposes is that the medical marijuana business must have timely registered under both the Interim Control Ordinance and the Grandfather/Lottery Ordinance. (City Mun. Code, § 45.19.6.3, subds. B. & C.) Other requirements include restrictions on hours of operation, limits on proximity to land zoned residential, and limits on proximity to schools, parks, religious institutions, and other medical marijuana businesses. (City Mun. Code, § 45.19.6.3, subds. G., K. & L.)
Just as the CUA and MMPA provide only immunities against certain criminal statutes, not a right to use and collectively cultivate medical
H. Appellants’ Operative Complaint
Appellants filed their complaint on September 16, 2013, and their operative first amended complaint two days later. The operative complaint contains 15 causes of action challenging Prop. D. Briefly stated, the complaint alleges that Prop. D:
First cause of action: denies appellants procedural and substantive due process;
Second cause of action: violates their right to equal protection;
Third cause of action: is an unconstitutional special law that favors old collectives over new ones (
Fourth cause of action: unconstitutionally grants special privileges and immunities to some preexisting nonconforming collectives, but not others (
Fifth cause of action: is preempted by
Sixth cause of action: is not a proper exercise of local regulatory power under Riverside;
Eighth cause of action: violates appellants’ rights to privacy and association;
Ninth cause of action: constitutes improper land use discrimination based on disability (
Eleventh cause of action: threatens appellants with criminal sanctions for exercising their state rights to use and collectively cultivate medical marijuana (
Twelfth cause of action: constitutes disability discrimination by the City (
Thirteenth cause of action: constitutes an improper taking without just compensation.
The complaint also alleges:
Fourteenth cause of action: that the City‘s passage of a motion to instruct the City‘s Police Department (LAPD) to work with the federal government to create a citywide enforcement strategy is a waste of public funds;
Fifteenth cause of action: certain document disclosure provisions of Prop. D violate appellants’ Fifth Amendment rights against self-incrimination; and
Sixteenth cause of action: Prop. D unnecessarily regulates access to medical marijuana without a rational basis or compelling reason.8
The City demurred, arguing, in large part, that the court decisions in Riverside and 420 Caregivers barred many of appellants’ causes of action. Additional arguments addressed other causes of action.
I. Appellants’ New Theory—City Charter Section 558
After the City demurred, but before appellants opposed the demurrer, appellants moved ex parte for a temporary restraining order (TRO) prohibiting enforcement of Prop. D. The basis for appellants’ motion was their new theory that Prop. D was void ab initio because it was adopted in violation of City Charter section 558 (charter section 558). That section sets forth procedures to be applied “to the adoption, amendment or repeal of ordinances, orders or resolutions by the Council” concerning zoning or land use.
The City opposed the application for a TRO, arguing that charter section 558 applies to the adoption of ordinances “by the Council,” while Prop. D was adopted by the electorate. The City therefore took the position that no submission to the planning commission was required, and Prop. D was properly adopted. The trial court denied the TRO.9
J. The Court Sustains the Demurrer
In response to the City‘s demurrer, appellants argued that Riverside and 420 Caregivers were distinguishable—in part because appellants had a right that the City would comply with charter section 558. In other words, appellants incorporated their argument that Prop. D was void ab initio into an argument that Prop. D‘s substantive provisions violated their rights.10 At the hearing on the demurrer, the trial court specifically asked appellants’ counsel how the complaint would be amended if leave were granted. Counsel responded that appellants would flesh out their argument based on charter section 558. The court replied that it was accepting appellants’ allegations regarding charter section 558 and considering them as if formally made.
The court sustained the demurrer without leave to amend. The court addressed each cause of action and concluded none stated a claim. Specifically, the court found that most of appellants’ complaint was barred by Riverside and 420 Caregivers. The court rejected appellants’ charter section 558 argument, concluding the provision simply did not apply to ordinances adopted by referendum.
K. The Court Denies Appellants’ Motion for Reconsideration
Appellants then moved for reconsideration, in an attempt to better allege their charter section 558 argument. The court denied the motion.
L. Judgment and Appeal
Judgment of dismissal was entered on June 6, 2014. Appellants filed a timely notice of appeal.11
M. Appellants’ New Theory on Appeal—Government Code Section 65804
On appeal, appellants argue for the first time they should be granted leave to amend to assert a new theory—that Prop. D was adopted in violation of
It is not entirely clear from appellants’ briefing which causes of action, and which arguments, appellants intend to pursue on appeal.12 In an abundance of caution—and because we conclude none of appellants’ arguments has merit—we address each of them. We first consider appellants’ arguments based on the alleged improper enactment of Prop. D—including the charter section 558 and
DISCUSSION
A. Standard of Review
“In reviewing the sufficiency of a complaint against a general demurrer, we are guided by long-settled rules. ‘We treat the demurrer as admitting all material facts properly pleaded, but not contentions, deductions or conclusions of fact or law. [Citation.] We also consider matters which may be judicially noticed.’ [Citation.] Further, we give the complaint a reasonable interpretation, reading it as a whole and its parts in their context. [Citation.] When a demurrer is sustained, we determine whether the complaint states
B. Prop. D Was Lawfully Enacted by Referendum
Appellants’ challenge to the enactment of Prop. D encompasses four different arguments. First, appellants argue that Prop. D was enacted in violation of
1. Prop. D‘s Enactment Did Not Violate Government Code Section 65804
The minimal procedural requirements all cities (including charter cities like Los Angeles) must follow in
The City argues, however, that the zoning act requirements apply only to the enactment of ordinances by local legislative bodies and not to the enactment of ordinances by initiative or referendum (whether in a charter city or general law city). The City is correct. In 1976, the Supreme Court concluded that zoning act “notice and hearing provisions govern only ordinances enacted by city council action and do not limit the power of municipal electors, reserved to them by the state Constitution, to enact legislation by initiative.” (Associated Home Builders etc., Inc. v. City of Livermore (1976) 18 Cal.3d 582, 588 [135 Cal.Rptr. 41, 557 P.2d 473] (Associated Home Builders).) In rejecting previous authority (e.g., Hurst v. City of Burlingame (1929) 207 Cal. 134 [277 P. 308]), the court stated that “the Legislature never intended the notice and hearing requirements of the zoning law to apply to the enactment of zoning initiatives.” (Associated Home Builders, at p. 594.)15
In their reply brief, appellants place reliance on language from Taschner v. City Council (1973) 31 Cal.App.3d 48, 64 [107 Cal.Rptr. 214] (Taschner) stating that presenting one‘s case to the electorate in the course of an initiative or referendum is no match for presenting one‘s case to the planning commission. But Taschner was expressly disapproved in Associated Home Builders, supra, 18 Cal.3d at page 596, footnote 14. The same argument was also rejected in Arnel Development Co. v. City of Costa Mesa (1980) 28 Cal.3d 511, 524 [169 Cal.Rptr. 904, 620 P.2d 565], which concluded that landowners’ rights are adequately protected. “When zoning is enacted by the city council, land owners by statute are entitled to notice and hearing. [Citation.] When zoning is enacted by initiative, land owners have the same opportunity as their opponents to present their case to the electorate.” (Ibid.)
2. Recent State Legislation—Medical Marijuana Regulation and Safety Act
While this appeal was pending, California enacted the Medical Marijuana Regulation and Safety Act (MMRSA), which, among other things, creates a state licensing scheme for medical marijuana. (
3. Prop. D‘s Enactment Did Not Violate City Charter Section 558
Pursuant to the zoning act, charter cities may develop their own procedures for adopting and amending zoning ordinances. (
Charter section 558, subdivision (a) states: “The requirements of this section shall apply to the adoption, amendment or repeal of ordinances, orders or resolutions by the Council concerning” a list of matters, including zoning. Subdivision (b) of section 558 states, “Procedures for the adoption, amendment or repeal of ordinances, orders or resolutions described in subsection (a) shall be prescribed by ordinance, subject to the following limitations . . . .” Appellants direct our attention to subdivision (b)(2), which provides that, after initiation, “the proposed ordinance . . . shall be referred to the . . . Planning Commission for its report and recommendation . . . .” Appellants argue that Prop. D is void because it was enacted in violation of charter section 558, as it was not referred to the planning commission.
Appellants claim that referenda must satisfy the requirements of charter section 558 because of charter section 460. Charter section 460, entitled “Subject of Referendum” provides, in pertinent part, that “the Council is authorized to submit to a vote of the registered voters of the City, at any election for any purpose at which all the registered voters of the City are entitled to vote, any proposed ordinance, order or resolution, that the Council itself might adopt.” (Italics added.) They argue that the emphasized language is a procedural limitation on referenda; that is, the council may only submit a proposed ordinance to the voters when that proposed ordinance had proceeded through all necessary procedures before the council itself could have adopted it by council vote alone. We disagree. Section 460 is concerned with the subject matter of referenda; the emphasized language means only that the City Council cannot submit to the voters any proposed ordinance which it is not within the lawful jurisdiction of the council to enact.
Our conclusion is supported by charter section 450, entitled “Subject of Initiative.” Section 450 is identical to charter section 460‘s referendum requirement except it applies to initiatives. It provides, “Any proposed ordinance which the Council itself might adopt” may be submitted to the council by initiative petition. (Italics added.) Were appellants’ interpretation of the italicized language correct, it would mean that before an initiative petition could be submitted to the City Council, its proponents would have to satisfy all of the necessary procedural requirements for enactment of an ordinance by the council—an absurd conclusion, and one at odds with the populist spirit of the initiative process. It is apparent that “which the Council itself might adopt,” as used in both charter sections 450 and 460 is simply a limit on substantive subject matter and not an incorporation of procedural requirements imposed on the council before the council may enact an ordinance.
4. Prop. D Does Not Grant the Equivalent of a Conditional Use Permit or Variance
In their last procedural challenge to the enactment of Prop. D, appellants suggest that Prop. D, in effect, grants a conditional use permit or variance to those medical marijuana businesses qualifying for exemption without satisfying the procedural or substantive requirements for a conditional use permit or variance.
Conditional use permits and variances differ from each other. (Essick v. Los Angeles (1950) 34 Cal.2d 614, 623 [213 P.2d 492].) A conditional use permit grants the permittee the right to one of an enumerated list of uses or activities which are allowed only by individual permit. (City Mun. Code, § 12.24, subds. U., V. & W.) Depending on the use or activity, a different decision maker is authorized to hold a hearing and make an initial decision on whether to grant the permit. (City Mun. Code, § 12.24, subds. C. & D.) In contrast, a variance grants an individual exception to the City‘s zoning ordinances when strict application of the zoning ordinance would result in practical difficulties or unnecessary hardships (among other requirements). (City Charter, § 562, subd. (c).) An application for a variance results in a hearing before the zoning administrator. (City Mun. Code, § 12.27, subds. B. & C.) The granting of conditional use permits and variances are administrative or quasi-judicial acts. (Essick, at p. 623.)
Facially, Prop. D does not grant either a conditional use permit or a variance. By definition, it is not a conditional use permit, as medical marijuana businesses are not among the itemized uses permitted only by conditional use permit. Nor does Prop. D grant a variance; it does not mention any specific parcel of property at all, or make any determinations regarding any specific parcel. On the contrary, Prop. D expressly provides that a medical marijuana business is not enumerated as a permitted use, and that the zoning administrator “shall not have the authority to determine that the use of any building, structure, location, premises or land as a medical marijuana business may be permitted in any zone; to add medical marijuana business to the Official Use List of the City; or to grant any variance authorizing any medical marijuana business.” (City Mun. Code, § 45.19.6.5.)
Appellants argue that Prop. D effectively grants conditional use permits or variances because it provides that collectives meeting its requirements “shall not be subject” to misdemeanor prosecution or nuisance abatement proceedings solely on the basis of operating a medical marijuana business that is not a permitted use. (City Mun. Code, § 45.19.6.3.) This is not an affirmative grant of any land use right (permit or variance) but a limited immunity applicable only when certain conditions are met. Whether or not this type of
C. Prop. D Survives All of Appellants’ Substantive Challenges
We now turn to appellants’ substantive challenges to the terms of Prop. D. As discussed above, Prop. D bans all medical marijuana businesses, but grants a limited exemption from civil or criminal liability to collectives meeting a list of requirements, including registration pursuant to both the Interim Control Ordinance and the Grandfather/Lottery Ordinance. None of the appellant collectives met those prior-registration requirements.
We pause to observe that running freely throughout appellants’ arguments as to each cause of action is appellants’ claim that there is a “right” created by state law to the use, sale and cultivation of medical marijuana. As we explain: there is no such right.
1. There Is No Statutory Right to Medical Marijuana
It is too late in the day for appellants to argue that the CUA and MMPA grant a statutory right to use and/or collectively cultivate medical marijuana. Our Supreme Court held in Riverside that (1) the CUA and MMPA are merely limited exceptions to the sanctions of the state‘s criminal laws (Riverside, supra, 56 Cal.4th at p. 739); (2) exempting certain activities from state prohibitions does not constitute an authorization of those activities (id. at p. 758); and (3) the CUA and MMPA do not grant a right “of convenient access” to medical marijuana (Riverside, at p. 762). In addition, we have expressly held that neither the CUA nor the MMPA creates “a state right to cultivate, distribute, or otherwise obtain marijuana collectively, and thereafter to possess and use it, for medical purposes.” (Conejo, supra, 214 Cal.App.4th at p. 1553.)
Appellants point to the newly enacted MMRSA as a legislative rejection of the appellate cases that have held no right to medical marijuana exists. Appellants’ direct our attention to a section of MMRSA that provides that any advertisement for physician recommendations for medical marijuana must include a reference to “the right to obtain and use” medical marijuana.18
This language is taken directly from that part of the CUA found in
We dispose quickly of appellants’ claim that MMRSA preempts local medical marijuana regulation in general or Prop. D in particular. MMRSA expressly addresses both issues. It first states that nothing in its regulatory scheme “shall be interpreted to supersede or limit existing local authority for law enforcement activity, enforcement of local zoning requirements or local ordinances, or enforcement of local permit or licensing
2.–14.*
15. Cause of Action 17—Attorney‘s Fees (Remedy Only)25
D. Appellants Are Not Entitled to Leave to Amend
The trial court did not abuse is discretion in denying leave to amend. Before the trial court, appellants argued for leave to amend in order to state new theories; they did not indicate any new facts they could allege if leave to amend were granted. The same is true on appeal as appellants continued to raise even more new theories. We have rejected all of those theories, which are for the most part new facial challenges to Prop. D.26 As for potential new factual allegations, the occasional references appellants make to facts that might be alleged if leave to amend were granted contain no clear statement of those facts, only that there are facts. We see no factual allegations that appellants could make that could state a cause of action.
*See footnote, ante, page 1029.
DISPOSITION
The judgment is affirmed. The City is to recover its costs on appeal.
Bigelow, P. J., and Flier, J., concurred.
Appellants’ petition for review by the Supreme Court was denied March 30, 2016, S232579. Kruger, J., did not participate therein.
