DISTRICT COURT CIVIL COVER SHEET Case No A-15-712902-W ‘County, Nevada XXVIL ‘Tasty Taformation pride som tome and molinpuatesses /djercn Plains) (mameladaresspione) vireo Wel ileal Clerk ness LLC and Dispensary LL¢ [Betendanis) amencdresiphoney Ciark County, Board of County Commissioners _ Real Property ‘anioedteant Deets Berane Elortertandiondenaat Tie o Property [HPsticia Foretesure Dower tite Papen ‘her Real Property Trhecondensasontninen Domin orn ea Propeny Negligence Crus recs inns lowieeneatigense Siapracice seicsrdenns Etec [assoonine oir Natpstie Tone ‘other Torts rrntect aatiiy Elnerins isons | Eemplonment tor | Eerance tort | omer tot rae sina Aumiiseton Dlenapeeso [Jroectosite Mediation Case Jett Adnan Blotter consineton ect lesion to Seat Recon isos asminsaton Coniracs Cue Elven Cometeney sa asise CJunicons commrciat Code Sends Site Agency Apres! Etnsucomenatesip [Ejsuing ant constuction [hoeracnent of Mot Vehicle Bowie rte [Efnerance Corer [workers compensation Estate Value Bicones! sane [loner neva state Ageney loveesaono00 cule of Aesoats ‘Appeal Other Elcosen 31,000 an $20,000 agent Comet [laonea ons tower coun {Elune s10,000 or Uninc Lower contact Cloner suit Review Appest Chaser 9,500 — — —aer ie Gail ein ing [wor ortates Cops [wen orton comprise Stina tain Fri of Mandamus Cowie iva wo Greig dann it of Quo Warr loner civ tates TE January 26, 2015 / EL Bae ata AT ama pay oF PEO See omer sie for Fumiy-afored cae ings.os Cor.) 20 Electronically Filed 04/26/2015 10:58:22 AM comP Shien Todd L. Bice, Esq., Bar No. 4534 CLERK OF THE COURT TLB@ pisanellibice.com Jordan T. Smith, Esq., Bar No. 12097 ITSG@ pisanellibice.com PISANELLI BICE PLLC 400 South 7th Street, Suite 300 Las Vegas, Nevada ‘89101 Telephone: (702) 214-2100 Facsimile: (702) 214-2101 Attomeys for Livfree Wellness LLC ‘And Nuleaf Clark Dispensary LLC DISTRICT COURT CLARK COUNTY, NEVADA LIVFREE WELLNESS L.L.C. and NULEAF | CaseNo.: A~15-712902-W CLARK DISPENSARY LLC, Dept. No XXV Plaintiffs, v. COMPLAINT CLARK COUNTY, BOARD OF COUNTY COMMISSIONERS IN AND FOR CLARK COUNTY, Defendant. Plaintiffs Livfree Wellness L.L.C Livfree Wellness") and Nuleaf Clark Dispensary LLC (Nuleaf") (collectively "Plaintiffs"), by and through their attorneys, PISANELLI BIC PLLC, hereby allege against Clark County and its Board of County Commissioners ("County") as follows: 1, Plaintiff Livfree Wellness is a Nevada Limited Liability Company. 2. Plaintiff Nuleaf is a Nevada Limited Liability Company. 3. Defendant Clark County, Board of County Commissioners is a political subdivision of the State of Nevada. I. GENERAL ALLEGATIONS A. The State Medical Marijuana Establishment Cert ‘ate Process 4, In 2013, the Nevada Legislature adopted SB374, incorporating comprehensive legislation to implement and authorize the distribution and use of medical marijuana in NRS Chapter 453A.PISANELLI BICE PLLC os Cor.) 20 The State limited the number of medical marijuana establishment registration certificates ("certificates") for the operation of dispensaries that could be issued in each county. In counties whose population is 700,000 persons or more — Clark County - only a total of 40 certificates may issue, as allocated between those portions of the unincorporated county as well as local municipalities, NRS 453A.324(1)(a) & 453.326, 6. The State also imposed a narrow window in which applications for a certificate could be submitted to the State, By statute, the application process can be open for no more than a total of "10 business days in any one calendar year." NRS 453A.324(4). At the close of that timeframe, the Legislature imposed a 90-day period in which applications could be considered in order to ensure the quick development of the medical marijuana industry to serve the needs of patients, NRS 453A.322(3). 7. The Division of Public and Behavioral Health of the Department of Health and Human Services (the "Division”) interprets, implements, administers, and regulates the State's medical marijuana statutory scheme. The Legislature granted the Division broad powers of| implementation and administration, including the adopting of regulations covering a range of| topics as well as for "such other matters as may assist in implementing the program of| dispensation ...." NRS 453A.370. 8 The Division has adopted NAC Chapter 453A, which sets forth the criteria for submitting medical marijuana certificate applications, criteria for selection of applicants, and other matters necessary to implement the Legislature's directive of making medical marijuana available under NRS Chapter 453A. 9. To issue medical marijuana registration certificates, the Division established an elaborate, anonymous application process whereby it ranks all applicants and the Division issues provisional certificates to the highest ranked applicants until the Division has issued the number of permissible certificates in each jurisdiction, NAC 453A.310; NAC 443A.312. The format of the Division's process preserved the non-political agenda of scrutinizing the most skilled, experienced, and qualified applicants to operate medical marijuana establishments in Nevada.PISANELLI BICE PLLC os Cor.) 20 10. The application process for a State certificate is quite extensive, An applicant must submit detailed information, and if the county "in which the proposed medical marijuana establishment will be located has enacted zoning restrictions,” the applicant is required to provide " proof of licensure with the applicable local governmental authority or a letter from the applicable local governmental authority certifying that the proposed medical marijuana establishment is in compliance with those restrictions and satisfies all applicable building requirements". NRS 453A,322(3)(a)(5). 11, However, proof of local governmental zoning approval is not a prerequisite to applying for a State certificate. The provisional certificate is not an approval to conduct business “until such time as: the medical marijuana establishment is in compliance with all applicable local governmental ordinances and regulations{,] {and] the local government has issued a business \se . ...for the operation of the medical marijuana establishment." NAC 453A.316(1)(a)-(b). 12. A certificate is provisional until the holder rec: all local governmental approvals and licenses to become fully operational and has 18 months to obtain those approvals. NAC 453.324. B. The Clark County Process 13, Attempting to influence the State certificate application process, Clark County passed Code provisions, Chapter 8.60, governing medical marijuana and rushed to conduct an application process before the State. 14, A special use permit is one of the requirements to obtain a medical marijuana business license in Clark County. CC 8.60.040; CC 8.60.020. 15. Livfree Wellness and Nuleaf timely submitted applications for special use permits and received favorable staff reports and recommendations from Clark County, confirming that each complied with all County land use requirements. 16. Upon information and belief, Clark County attempted to control who would| become successful applicants at the State level, by awarding special use permits to only its preferred eighteen applicants. Clark County erroneously thought that in doing so, it could dictate who would be the successful applicants at the State level.PISANELLI BICE PLLC os Cor.) 20 17. In June 2014, after completing its flawed special use permit application process, the County issued to its preferred eighteen applicants special use permits for the operation of| ‘medical marijuana dispensaries, 18. Livfree Wellness and Nuleaf did not receive a special use permit from Clark County, But because they satisfied the county's Code requirements, their applications were held in abeyance pending the outcome of the State's certificate process, along with all other applicants outside the County's preferred eighteen. 19, Inholding the applications in abeyance, the County confirmed, "We're not denying them, ‘Those applications will be held in abeyance in the event that the permittees that you do approve today do not successfully make it through the state's process . .. and say to the 60 some do go through th state process . . . so that they will have a pending application before you that you can go back and you can decide at that time.” C. _Livfree Wellness and Nuleaf Receive State Certificates and the County Improperly Denies their Special Use Permit Applications Without Prejudice. 20. Although they did not receive a special use permit from the County, Livfree Wellnes and Nuleaf submitted the County's favorable staff reports to the Division as part n of NRS 453A.322(3)(a)(5). of their State certificate application and in satisfa 21. Upon completion of the State's exhaustive review process, Livfree Wellness and Nuleaf were ranked among the most qualified applicants under Nevada law and were awarded "Provisional Medical Marijuana Establishment Registration Certificates” from the Division. 22, This caused a problem for the County. The State's eighteen most qualified applicants did not completely match the County's preferred eighteen. Only ten applicants made both lists. 23. Unsurprisingly, the eight County special use permittees that were not within the State's top eighteen applicants ("the County Eight") became upset thinking that they had successfully boxed the State into approving their subpar applications through cooperation with Clark County.PISANELLI BICE PLLC os Cor.) 20 24, Upon information and belief, the County Eight then began lobbying Clark County to deny the special use permit applicants of the successful State Eight in further attempting to circumvent the State process and obtain Clark County's assistance in aiding them to acquire State certificates that they did not win and did not deserve. 25, Under the pretext of alleged conversations with unnamed Division employees, the County endeavored to deny the special use permits that were held in abeyance hoping to get the Division to revoke the provisional certificates of the State's eight that did not also have County approval ("the State Eight"). In doing so, the County ignored state law and the Division’s written position paper, dated November 18, 2014 (http://health ny.2ov/Medical Marijuana/PositionPaper pdf) declaring that the State would not be issuing any more provisional licenses. In addition, the County ignored the law providing that provisional certificate holders have 18 months to obtain all local governmental approvals, including special use permits from the County. NAC 453A.324; NAC 453A.316(1)(a)-(b). 26. On December 29, 2014, days after the Eighth Judicial District Court rejected the County's interpretation of NRS Chapter 453A, the Clark County Board of Commissioners held a meeting wherein it denied without prejudice en masse all pending medical marijuana establishment special use permit applications in one single, solitary vote, including the applications of Nuleaf and Livfree Wellness. 27. During its discussion, the County Commission did not and could not identify one rational or legitimate land use basis for its decision to deny the pending applications. The Commissioners and their counsel acknowledged that the sole basis for denying the pending applications was to reward the less qualified applicants by attempting to force the State into some ill-advised attempt to revoke the lawful certificates that Defendants had received in violation of Nevada law. The County Commissioners expressly stated that allowing the State to determine this issue would set precedence for State authority over other is ues, despite the fact that the enabling medical marijuana legislation charged the State and the Division to administer the licensing program.PISANELLI BICE PLLC os Cor.) 20 28, By denying Livfree Wellness and Nuleaf’s special use permit applications without a rational land use basis, the County acted illegally and deprived them of their ight and ability to engage in their chosen profession, and impermissibly treated them differently from similarly situated applicants. FIRST CAUSE OF ACTION judicial Review 29, Nuleaf and L ee Wellness reallege and incorporate the allegations contained within Paragraphs 1 through 28 as though fully set forth herein, 30. Nuleaf and free Wellness are parties of record in the proceedings before the County regarding their special use permit applications for the operation of medical marijuana establishment dispensaries in Clark County. 31. Nuleaf and Livéree Wellness have been aggrieved by the County's unlawful denial of their special use permits applications without a legal basi 32, Nuleaf and Livfree Wellness have exhausted all of their administrative remedies before the County. 33. Nuleaf and Livfree Wellness are entitled to judicial review of the County's unlawful denial of their special use permits pursuant to Nevada law. See, e.g., NRS 233B.130. 34, ‘Therefore, Nuleaf and Livfree Wellness respectfully request judicial review of the County's decision to deny their special use permit applications for the operation of medical marijuana establishment dispensaries in Clark County and an order setting aside the County's decision as unlawful. SECOND CAUSE OF ACTION (Writ of Mandamus and/or Prohibition 35. Nuleaf and Livfree Wellness reallege and incorporate the allegations contained within Paragraphs 1 through 34 as though fully set forth herein, 36, As a result of the Board of County Commissioners’ office, trust, and station, the law compelled it to issue special use permits for the operation of medical marijuana establishment certificate to Nuleaf and Livfree Wellness,PISANELLI BICE PLLC os Cor.) 37, Nuleaf and Livfree Wellness have no plain, speedy, or adequate remedy at law, 38, Clark County engaged in unlawful, arbitrary and capr ‘ious conduct in denying Nuleaf and Livfree Wellness’ special use permit applications. 39, Nuleaf and Livfree Wellness respectfully request that, upon return of the writ, the Board of County Commissioners be ordered to issue special use permits to Nuleaf and Livfree Wellness. 40, Alternatively, Nuleaf and Livfree Wellness respectfully request that the Court arrest the proceedings of the Board of County Commissioners in furtherance of the denial of their special use permits that are in excess of the Board of County Commissioners’ jurisd THIRD CAUSE OF ACTION Declaratory Relief) 41, Nuleaf and Livfree Wellness reallege and incorporate the allegations contained within Paragraphs 1 through 40 as though fully set forth he 42. A true, ripe, and justiciable controversy exists between Nuleaf and Livfree Wellness, on the one hand, and the Board of County Commissioners, on the other hand, regarding whether Nuleaf and Livfree Wellness are entitled to a speci I use permit to operate a medical marijuana establishment dispensaries in Clark County. 43. Declaratory relief pursuant to NRS Chapter 30 is necessary to declare the respective rights, entitlements, and obligations of Nuleaf, Livfree Wellness, and the Board of County Commissioners. 44, Nuleaf and Livfree Wellness seek a declaration that (1) Clark County's conduct is 2) there is no rational or legitimate land use basis to deny their applications and (3) that| they are entitled to special use permits to operate medical marijuana establishment dispensaries inPISANELLI BICE PLLC 1 WHEREFORE, Nuleaf and Livfree Wellness pray for the following relief: 2 1 Judicial review of the County's irrational and illegitimate denial of their special use permit applications; 4 2. Reversal of the County's decision and the grant of special use permits for 5 the operation of medical marijuana establishment dispensaries in 6 Clark County; 7 3. Awrit of mandamus directing the Board of County Commissioners to grant 8 special use permits for the operation of medical marijuana establishment 9 dispensaries in Clark County; 10 4. A writ of prohibition precluding the County for taking further action ul respecting the denial of their special use permits for the operation of R medical marijuana establishment dispensaries in Clark Coun 1B A declaration that there is no rational or legitimate land use basis to deny 14 their applications and that they are entitled to special use permits to operate 15 medical marijuana establishment dispensaries in Clark Coun 16 6. Injunetive relief to effectuate this Court’s ruling; 7 Damages as permitted under Nevada Law; 18 8. Forrecovery of attorneys’ fees and costs; and 19 9. For such additional relief as this Court may deem proper. 20 DATED this 23" day of January, 2015, a PISANELLI BICE PLLC 2 A By: __{s/ Todd L, Bice 2 Todd L. Bice, Esq., Bar No, 4534 a Jordan T. Smith, Esq., Bar No, 12097 B 400 South 7th Street, Suite 300 re Las Vegas, Nevada "89101 Be Attorneys for Attomeys for Livfree Wellness L.L.C. 7 and Nuleaf Clark Dispensary LLC 27 28