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December 10, 2017 I Volume 11 I Issue 23 Zoning Bulletin <br />operation of a medical marijuana dispensary that had a history of unpaid taxes. <br />The City argued that Ordinance No. 1715 did not, as the trial court had held, <br />impermissibly amend Measure C's tax provisions to increase the penalty for <br />nonpayment of taxes but simply "limit[ed] the many aspirants to sell medical <br />marijuana in the city to a manageable number by preferring those who have <br />demonstrated a willingness and ability to comply with local law by paying the <br />Measure C tax when the [C]ity enforced it . . . and to continue paying taxes <br />as a condition of immunized operation." <br />DECISION: Judgment of Superior Court reversed, and matter re- <br />manded with directions to issue the City's requested preliminary <br />injunction. <br />The Court of Appeal, First District, Division 3, California, agreed with the <br />City. The court said that "[l]ocal governments may rationally limit medical <br />marijuana dispensaries to those already in operation and compliant with prior <br />law as past compliance shows a willingness to follow the law, which suggests <br />future lawful behavior." Thus, the court characterized Ordinance No. 1715 as <br />"essentially a grandfather provision." The court determined that a marijuana <br />dispensary's timely payment of business taxes provided the City "with a <br />rational basis to conclude that the dispensary will continue to act in a law- <br />abiding manner." Since NCORP4 did not pay its business taxes, the court <br />concluded that the City reasonably denied NCORP4 immunity to continue <br />operations. <br />Addressing the NCORP4's argument and the trial court's conclusion —that <br />Ordinance No. 1715 impermissibly amended Measure C as an ex post facto <br />law, the appellate court noted that the constitutional prohibition on ex post <br />facto laws applied only to criminal statutes and was inapplicable to local ordi- <br />nances regulating the operation of medical marijuana dispensaries. Moreover, <br />the court concluded that Ordinance No. 1715 did not'amend Measure C's tax <br />provisions retrospectively, but rather was a separate ordinance that used past <br />compliance with Measure C as one of several standards for granting dispensa- <br />ries immunity from prosecution as a public nuisance. <br />See also: 420 Caregivers, LLC v. City of Los Angeles, 219 Cal. App. 4th <br />1316, 163 Cal. Rptr. 3d 17 (2d Dist. 2012). <br />See also: City of Riverside v. Inland Empire Patients Health and Wellness <br />Center, Inc., 56 Cal. 4th 729, 156 Cal. Rptr 3d 409, 300 P.3d 494, 28 A.D. <br />Cas. (BNA) 144 (2013). <br />4 © 2017 Thomson Reuters <br />