|
Filed 1/6/09
CERTIFIED FOR PUBLICATION
COURT OF APPEAL, FOURTH APPELLATE DISTRICT
DIVISION ONE
STATE OF CALIFORNIA
|
ADAM RANKIN,
Plaintiff and Appellant,
v.
LONGS DRUG STORES
CALIFORNIA, INC.,
Defendant and Respondent.
|
D052124
(Super. Ct. No.
GIC837068)
|
APPEAL
from a judgment of the Superior Court of San Diego County, Richard E.L.
Strauss, Luis R. Vargas and Kevin A. Enright, Judges. Affirmed.
Law
Office of Terry J. Chapko, Terry J. Chapko; Goldstein, Demchak, Baller,
Borgen & Dardarian, David Borgen, Laura L. Ho, Heather Mills; Bohm,
Matsen, Kegel & Aguilera and A. Eric Aguilera for Plaintiff and
Appellant.
Orrick,
Herrington & Sutcliffe, Timothy J. Long, Michael D. Weil and Mary K.
DuBose for Defendant and Respondent.
Plaintiff Adam Rankin filed this lawsuit alleging that defendant Longs
Drug Stores California, Inc. (Longs) violated California law because
Longs's employment application contained a question (the question)
asking whether Rankin had been convicted of a crime involving the use or
possession of illegal drugs during the preceding seven years.
Rankin sought, on behalf of himself and all others similarly situated
during the relevant class period, the statutory recovery specified under
Labor Code section 432.7, subdivision (c). The court certified the
class, rejected Longs's pretrial motions arguing that section 432.7 was
preempted by federal law, and proceeded to trial.
At
trial, the court rejected Longs's arguments that the federal laws in
effect during the class period preempted section 432.7, and rejected
Longs's claim that federal legislation enacted after the class period
(the Combat Methamphetamine Epidemic Act of 2005, (CMA))
was a clarification of, rather than a change in, existing laws for
purposes of the federal preemption issue. However, the trial court
invited the parties to address whether enactment of the CMA should
operate to abate any action against Longs alleging violation of section
432.7. After further briefing, the court found the enactment of the CMA
operated to abate an action seeking an award under section 432.7, and
dismissed Rankin's action. This appeal followed.
I
FACTUAL AND PROCEDURAL BACKGROUND
A. Facts
Longs
operates nearly 400 stores in California and, within each store,
operates a pharmacy at which controlled substances are dispensed. Longs
is required to license each of its pharmacies with the State of
California and to register each pharmacy with the federal Drug
Enforcement Administration (DEA). At each of the Longs stores, all
employees have access to controlled substances and pseudoephedrine (a
precursor chemical) with the opportunity to steal those substances.
Longs also operates a wholesale distribution center registered with the
DEA. At that facility, controlled substances are received and stored
until reshipped to Longs retail stores. All employees of the wholesale
distribution center are or may at times be involved in handling
controlled substances.
During
the class period, Longs's application for employment contained the
following question concerning prior convictions:
"Have you been convicted during the last seven
years of a felony, a crime concerning use or possession of illegal
drugs, or any misdemeanor which resulted in imprisonment?"
In
October 2004 Rankin completed an employment application containing the
question. Rankin responded he had been convicted in the State of
Washington of possession of fewer than 40 grams of marijuana.
B. The Lawsuit
Pretrial Proceedings
Rankin
filed this action seeking an award under section 432.7, alleging Longs
violated section 432.7 by asking questions about certain prior
convictions. In July 2005 the court granted Rankin's class
certification motion, and defined the class as all individuals who
submitted an employment application to Longs between October 13, 2003,
and September 5, 2005 (the class period), containing the question. The
class notice was sent to nearly 78,000 people, and fewer than 500 opted
out of the class.
In
several pretrial motions, Longs argued the federal Controlled Substances
Act (21 U.S.C. §§ 801-904 (CSA)) and an implementing DEA regulation (21
C.F.R. § 1301.76(a) (2005)) barred the application of section 432.7 to
Longs under federal preemption principles. The trial court consistently
rejected Longs's argument. However, shortly before trial, Congress
enacted the CMA, which gives rise to the present appellate dispute.
The CMA
On
March 9, 2006, Congress enacted legislation that included the CMA.
Among other things, the CMA amended the CSA to permit retail pharmacies
to ask applicants whether they had ever been convicted of any crime
involving controlled substances, "notwithstanding state law." (21 U.S.C.,
§ 830(e)(1)(G).) Although some provisions of the CMA became effective
30 days after its enactment, numerous other provisions (including the
provision regarding permissible questions) were expressly made effective
"on and after September 30, 2006." (Pub.L. No. 109-177 § 711 (b)(2)(B)
(Mar. 9, 2006) 120 Stat. 192, 261.)
Subsequent Trial and
Posttrial Proceedings
In a
writ petition to this court and in a renewed summary judgment motion in
the trial court, Longs argued the CMA merely clarified (rather than
substantively amended) existing law and therefore judgment should be
entered in its favor under federal preemption principles. Rankin
opposed both the writ petition and summary judgment motion, asserting
the CMA changed (rather than clarified) existing law and therefore was a
new law enacted subsequent to the class period and irrelevant to any
federal preemption analysis. This court peremptorily denied the writ
petition, and the trial court denied the summary judgment motion.
During
the bench trial, the court denied Longs's renewed motion asserting
federal preemption principles required judgment in its favor. Longs
argued the CMA was intended to be declarative of existing law codified
by the CSA and, because existing law permitted it to ask the question,
federal preemption principles required judgment be entered in Longs's
favor. However, the court expressed concern about imposing the
penalties authorized under section 432.7 for Longs's prior employment
applications, because of the CMA's express approval of identical conduct
by Longs for all future applications. The trial court therefore invited
further briefing and argument on this issue. After considering the
parties' briefs and arguments on whether principles of abatement should
apply, the trial court ruled that because the CMA now permits Longs to
ask applicants about any convictions involving controlled substances, a
judgment of dismissal should be entered in favor of Longs under
abatement principles. Following entry of judgment for Longs, Rankin
timely appealed.
II
CONTENTIONS ON APPEAL
Longs
argues the trial court correctly found, when Congress adopted the CMA,
it substituted a "right for a crime" within the meaning of Hamm v.
City of Rock Hill (1964) 379 U.S. 306 (Hamm), and because the
CMA does not contain an express saving clause, any action seeking a
penalty for formerly prohibited conduct must be abated. Rankin argues
abatement applies only when the Legislature intends its enactment to
have retroactive application, and because the CMA was intended to apply
prospectively only, it does not relieve Longs of liability for
violations of section 432.7 that occurred several years before the
effective date of the CMA.
III
STANDARDS OF REVIEW
The
parties agree that, after the effective date of the CMA, federal
preemption principles preclude the application of section 432.7 to Longs
because section 432.7's prohibition against employers asking prospective
employees about certain drug-related convictions is in direct conflict
with the CMA's provisions authorizing Longs to ask those questions.
Instead, this appeal turns on the interpretation of the federal
statutory scheme: was the relevant provision of the CMA intended to
apply prospectively only, thereby precluding the application of
abatement principles to a lawsuit seeking to hold Longs liable for
conduct predating the enactment?
The
interpretation of statutes presents questions of law subject to de novo
review on appeal. (People ex rel. Lockyer v. Shamrock Foods Co.
(2000) 24 Cal.4th 415, 432.) When construing statutes or ascertaining
legislative intent, an appellate court is not limited either by the
trial court's interpretation or by the evidence presented on the issue
below. (City of Oakland v. Superior Court (1996) 45 Cal.App.4th
740, 753.)
We are
guided by the fundamental precept that, when construing a statute, a
court strives to ascertain and effectuate the Legislature's intent. (People
v. Allegheny Casualty Co. (2007) 41 Cal.4th 704, 708.) We ascertain
intent by looking first to the statutory language, giving it the usual
and ordinary meaning, and if the language contains no ambiguity, we
presume the Legislature meant what it said, and the plain meaning of the
statute governs. (Id. at p. 709.) However, where the statutory
language is susceptible of more than one reasonable construction, we
examine the context and apparent purposes of the statute to aid in
ascertaining the legislative intent with the goal of adopting a
construction that will effectuate that intent. (Catholic Mutual
Relief Society v. Superior Court (2007) 42 Cal.4th 358, 372.)
IV
ANALYSIS
A
familiar rule guiding courts when interpreting a statutory change is
that, when the Legislature is silent on its intent, the new statutory
scheme is ordinarily construed to operate prospectively rather than
retroactively. This rule of construction, which finds expression in our
statutes (Code Civ. Proc., § 3), may be rooted in concerns that
retroactive application of new criminal laws may be barred by the ex
post facto clause, and that retroactive application of new civil laws
may offend due process considerations. (See generally
Landgraf v. USI Film Products
(1994)
511 U.S.
244, 266-267.) (County
of San Bernardino v. Ranger Ins. Co. (1995) 34 Cal.App.4th 1140,
1148-1149.)
However, different considerations are implicated in the limited
circumstances in which the Legislature enacts a statute that completely
reverses substantive law by effectively permitting previously prohibited
conduct. Those enactments, at least when they are devoid of an express
saving clause declaring a legislative intent that the new enactment was
not intended to release or extinguish penalties incurred for conduct
occurring under the prior statutory regime, have led the courts to apply
the common law principle of abatement to conclude all still pending
actions brought under the old statute must be abated and dismissed. (Hamm,
supra, 379 U.S. 306; People v. Rossi (1976) 18 Cal.3d 295 (Rossi).)
For
example, in Rossi, the legislative act amended a law to remove
all criminal sanctions for certain consensual sexual conduct and was
unaccompanied by any express saving clause. The Rossi court held
the legislation required abatement of a pending criminal action case for
conduct proscribed when committed but no longer criminal. (Rossi,
supra, 18 Cal.3d at pp. 298-304.) The court in People v. Collins
(1978) 21 Cal.3d 208, explaining the underlying rationale for abatement,
noted Rossi "held that when the Legislature repeals a criminal
statute--or otherwise removes state sanctions from conduct formerly
deemed criminal--its action requires the dismissal of pending criminal
proceedings charging such conduct. Our holding in Rossi derived
from the common law rule, early recognized in Spears v. County of
Modoc (1894) 101 Cal. 303, 305 [35 P. 869], and often reaffirmed by
this court, that the repeal of a criminal statute without a saving
clause terminates all criminal prosecutions not reduced to final
judgment. In Sekt v. Justice's Court (1945) 26 Cal.2d 297, 304
[159 P.2d 17, 167 A.L.R. 833], we discussed the rule's theoretical
basis: it presumes the Legislature, by removing the proscription from
specified conduct, intended to condone past acts." (Collins, at
p. 212.)
When
the Legislature enacts a statute that goes beyond merely removing
criminal penalties for specified conduct, and instead expressly declares
the formerly proscribed conduct is affirmatively permitted, the
abatement principles apply with greater force. A statutory enactment
that substituted a right for a crime, which "is a possibly unique
phenomenon in legislation" (Bell v. Maryland (1964) 378 U.S. 226,
235), was examined by the court in
Hamm.
The defendants in Hamm, who had been convicted under a state
trespass statute for conducting a "sit-in," argued their convictions
should be overturned and all criminal proceedings should be dismissed
because federal legislation (the Act), which did not become effective
until after they had conducted the sit-in, declared that persons were
entitled to engage in the conduct as a matter of right. (Hamm,
supra, 379 U.S. at pp. 307-308.) Hamm concluded, because the
Act had "substitute[d] a right for a crime" (id. at p. 314), the
Act required abatement of all actions premised on the protected
behavior, even absent legislative history or statutory language calling
for retroactive application of the Act, because abatement "does not
depend on the imputation of a specific intention to Congress in any
particular statute. None of the cases cited drew on any reference to
the problem in the legislative history or the language of the statute.
Rather, the principle takes the more general form of imputing to
Congress an intention to avoid inflicting punishment at a time when it
can no longer further any legislative purpose, and would be
unnecessarily vindictive. This general principle, expressed in the
rule, is to be read wherever applicable as part of the background
against which Congress acts. Thus, we deem it irrelevant that Congress
made no allusion to the problem in enacting the Civil Rights Act." (Id.
at pp. 313-314.)
Moreover, the court rejected the argument that abatement could be
avoided by imputing the generic provisions of the federal saving statute
(1 U.S.C., § 109) into every federal statute.
Hamm
noted the underlying purpose of the federal saving statute, adopted in
1871, was "to obviate mere technical abatement such as that illustrated
by the application of the rule in [United States v. Tynen (1871)
78 U.S. 88]. There a substitution of a new statute with a greater
schedule of penalties was held to abate the previous prosecution."
(Hamm, supra, 379 U.S. at p. 314.) The court concluded the
general saving statute was inapplicable because, "[i]n contrast [to
Tynen], the . . . Act works no such technical abatement. It
substitutes a right for a crime. So drastic a change is well beyond the
narrow language of amendment and repeal. It is clear, therefore, that
if the convictions were under a federal statute they would be abated."
(Id. at p. 314.)
Hamm
then held the abatement principles applied with equal force to an action
brought under state laws, reasoning:
"Since the provisions of the Act would abate
all federal prosecutions [for trespass] it follows that the same rule
must prevail under the Supremacy Clause which requires that a contrary
state practice or state statute must give way. Here the Act intervened
before either of the judgments under attack was finalized. Just as in
federal cases abatement must follow in these state prosecutions. Rather
than a retroactive intrusion into state criminal law this is but the
application of a long-standing federal rule, namely, that since the
. . . Act substitutes a right for a crime any state statute, or its
application, to the contrary must by virtue of the Supremacy Clause give
way under the normal abatement rule covering pending convictions arising
out of a pre-enactment activity. The great purpose of the civil rights
legislation was to obliterate the effect of a distressing chapter of our
history. This demands no less than the application of a normal rule of
statutory construction to strike down pending convictions inconsistent
with the purposes of the Act." (Hamm, supra, 379 U.S. at p.
315.)
Although Hamm
and Rossi involved statutes that decriminalized conduct
previously criminal, abatement principles have been applied with equal
force in civil cases. (Governing Board v. Mann (1977) 18 Cal.3d
819, 830 (Mann) ["[a]s a host of California cases demonstrate,
. . . the reach of this common law rule has never been confined solely
to criminal or quasi-criminal matters"].) Indeed, " '[a]lthough the
courts normally construe statutes to operate prospectively, the courts
correlatively hold under the common law that when a pending action rests
solely on a statutory basis, and when no rights have vested under the
statute, "a repeal of such a statute without a saving clause will
terminate all pending actions based thereon." ' [Quoting Mann,
at p. 829.] In other words, where 'the Legislature has conferred a
remedy and withdraws it by amendment or repeal of the remedial statute,
the new statutory scheme may be applied to pending actions without
triggering retrospectivity concerns. . . .' [Quoting Brenton v.
Metabolife Internat., Inc. (2004) 116 Cal.App.4th 679, 690.]" (Zipperer
v.
County of Santa Clara
(2005) 133
Cal.App.4th 1013, 1023.)
The
Zipperer court applied these principles when a 1979 legislative
enactment, which had conferred certain statutory rights on the
plaintiff, was partially repealed by a 2002 enactment nullifying those
rights. The court, rejecting the plaintiffs' argument that they were
entitled to pursue their pending action to collect under the 1979
statute for all injuries suffered prior to 2002, reasoned "[r]epeal
of a remedial statute destroys a pending statutory action unless 'vested
or contractual rights have arisen under' the statute[,] . . . [and in]
this case, no such rights have arisen. . . . [P]laintiffs [do not] have
any vested right in maintaining their statutory claim. ' "No person has
a vested right in an unenforced statutory penalty or forfeiture." '
[Citations.] Until it is fully enforced, a statutory remedy is merely
an ' "inchoate, incomplete, and unperfected" ' right, which is subject
to legislative abolition." (Zipperer v. County of Santa Clara,
supra, 133 Cal.App.4th at p. 1024, citation omitted.)
When a
pending action seeks recovery based on a statutorily-based obligation,
and that statutory provision is repealed by legislation not containing
an express saving clause, the California courts have consistently
concluded the pending actions should be abated. This principle was
applied in Mann, supra, 18 Cal.3d 819, in which a school district
sought a determination that a teacher's marijuana conviction provided
statutory grounds for dismissal but, while the judgment in the school
district's favor was on appeal, the Legislature eliminated that
conviction as a statutory basis for dismissal, and the Supreme Court
concluded the school district's action should be abated. (Id. at
pp. 829-831.) Mann cited an array of earlier cases applying this
rule in the civil context (see Mann, supra, 18 Cal.3d at p. 830,
fn. 8), and cases subsequent to Mann have continued to apply this
rule. (See, e.g., County of San Bernardino v. Ranger Ins. Co.,
supra, 34 Cal.App.4th at pp. 1148-1149 [repeal of statute providing
for civil penalty or forfeiture running either to individual or state
extinguishes right to recover under statute and applies to all cases not
yet final];
Zipperer v. County of Santa Clara, supra, 133
Cal.App.4th at p. 1024.)
These
principles convince us the CMA, by expressly authorizing Longs to ask
applicants "whether they have been convicted of any crime involving or
related to . . . controlled substances," and by conferring this
privilege "notwithstanding State law" (21 U.S.C., § 830(e)(1)(G)), has
substituted a federal right in place of a state statute banning those
questions, within the meaning of Hamm. Because this partial
repeal of California's statutory right was unaccompanied by any express
saving clause, we conclude, under the line of cases represented by
decisions like Hamm, Rossi and Mann, the trial
court correctly ruled common law principles of abatement compelled a
judgment dismissing Rankin's action.
Rankin
asserts that all of the California cases applying abatement are
inapposite because each is distinguishable in a critical aspect: the
legislation repealing the former right or obligation had no saving
clause. When there is an express saving clause, the courts will
not apply abatement principles. (Cf. People v. Floyd (2003) 31
Cal.4th 179, 183 [express declaration that "provisions shall be applied
prospectively" bars applying new laws to offenses committed before
operative date].) Rankin, although conceding Congress did not insert an
express saving clause into the CMA, argues abatement is not applicable
"where the Legislature clearly signals its intent to make the amendment
prospective, by inclusion of either an express saving clause or its
equivalent." (People v. Nasalga (1996) 12 Cal.4th 784, 793,
italics added, fn. omitted.) Rankin argues that Congress, by specifying
the effective date for portions the CMA (including 21 U.S.C.,
§ 830(e)(1)(G)) would be delayed approximately six months (see Pub.L.
No. 109-177 § 711(b)(2)(B) (Mar. 9, 2006) 120 Stat. 192, 261), inserted
the "equivalent" of a saving clause from which we may and should infer
Congress intended the CMA would not be applied to pending actions.
Some
federal courts have cited the delayed effective date for legislation as
evidencing a legislative intent for prospective application. (See,
e.g., U.S. v. Brebner (9th Cir. 1991) 951 F.2d 1017, 1022-1023.)
However, apart from dicta in some cases,
Rankin cites no California case holding the delayed effective date of a
statutory repeal, standing alone, suffices as the type of clear signal
of a legislative "intent to make the amendment prospective" (People
v. Nasalga, supra, 12 Cal.4th at p. 793) that will preclude
application of abatement principles. A sampling of the numerous cases
in California applying abatement to legislative repeals of
statutorily-derived rights demonstrates abatement was applied even
though the statutory repeal did not go into effect until some time after
the legislation was adopted.
For
example, despite a delayed effective date of
the enactment considered in County of San Bernardino v. Ranger Ins.
Co., supra, 34 Cal.App.4th 1140, that court held the subject
enactment, which became effective after a delay because it was a
nonurgency enactment (see Stats. 1994, ch. 649 (A.B. 3059) § 1, pp.
3133-3136),
would be applied retroactively. Similarly, the court in Mann
gave retroactive effect to a nonurgency enactment (see Stats. 1976, ch.
952, pp. 2177-2180) despite its delayed effective date. The numerous
cases cited by Mann that similarly gave retroactive effect to
legislation (Mann, supra, 18 Cal.3d at p. 830, fn. 8) contain no
suggestion the delayed effective date of the enactment was relevant to
determining whether the Legislature intended that enactment to have only
prospective application. Of course, where the law expressly
states it applies prospectively only (see e.g., Talley v. Municipal
Court (1978) 87 Cal.App.3d 109, 113) or has a delayed effective date
and is coupled with contemporaneous legislative enactments that
effectively preclude any retroactive operation (see, e.g.,
County of Alameda v. Kuchel
(1948)
32
Cal.2d 193, 196-199), the
law will be construed as having only prospective operation. (Ibid.)
However,
there is
no internal impediment that would necessarily create internal
inconsistencies if portions of the CMA are applied prospectively while
other aspects are applied to pending actions.
Moreover, the reason for delaying the effective date for the provisions
of title 21, United States Code section 830(e)(1) are explicable for
numerous reasons other than an intent to have those provisions apply
prospectively. As explained by the court in Preston v. State Bd. of
Equalization, supra, 25 Cal.4th 197, 223-224:
"[T]he postponement of the operative date of
the legislation . . . does not mean that the Legislature intended to
limit its application to transactions occurring after that date. . . .
The Legislature may [delay the operative date] for reasons other than an
intent to give the statute prospective effect. For example, the
Legislature may delay the operation of a statute to allow 'persons and
agencies affected by it to become aware of its existence and to comply
with its terms.' [Citation.] In addition, the Legislature may wish 'to
give lead time to the governmental authorities to establish machinery
for the operation of or implementation of the new law.' [Citation.] A
later operative date may also 'provide time for emergency clean-up
amendments and the passage of interrelated legislation.' [Citation.]
Finally, a later operative date may simply be 'a date of convenience
. . . for bookkeeping, retirement or other reasons.' [Citation.] [¶]
In this case, the Legislature gave no rationale for the postponement.
Thus, it may have postponed the operative date for reasons other than
an intent to give [the legislation] prospective effect. For example,
the Legislature may have wished to give the Board time to enact new
regulations for the 1993 tax year or to settle ongoing tax disputes
prior to the implementation of the legislation. The Legislature also
may have anticipated possible cleanup amendments . . . . In any event,
where, as here, compelling indicators of the Legislature's intent to
give a statute retrospective effect exist, the mere postponement of the
statute's operative date is not enough to negate these indicators. (See
Tevis v. City & County of San Francisco (1954) 43 Cal.2d 190,
194-196 [272 P.2d 757] [a charter amendment has retrospective effect
even though the amendment delayed its effective date].)"
Here,
title 21, United States Code section 830(e)(1) contains numerous
administrative requirements apart from permitting registrants to inquire
about former convictions: it imposes "behind-the-counter"
access and "logbook" requirements for certain drugs (subd. (e)(1)(A));
it imposes additional training requirements for sales personnel and
certification requirements for sellers (subd. (e)(1)(B)); and it
requires the Attorney General to develop regulations to protect the
privacy interests of consumers (subd. (e)(1)(C)). The delayed effective
date for those provisions is consistent with the goals of allowing " 'persons
and agencies affected by it to become aware of its existence and to
comply with its terms' " (Preston v. State Bd. of Equalization,
supra, 25 Cal.4th at p. 223) and " 'to give lead time to the
governmental authorities to establish machinery for the operation of or
implementation of the new law' " (id. at pp. 223-224), but does
not necessarily evidence a clear intent to have all of its provisions
operate prospectively only. The fact Congress delayed the effective
date for certain provisions of the CMA provides little guidance on the
issue of abatement.
Rankin
also asserts the federal general saving statute precludes the
application of abatement principles in this case. We are not persuaded
by Rankin's argument because it appears the underlying purposes of
general saving statutes render them inapplicable here. The general
saving statutes in the federal system (see 1 U.S.C., § 109) did not
impede Hamm's determination that the new legislation should apply
to pending actions because Hamm recognized the general saving
statute focused on avoiding technical abatements while the legislation
before it did not involve any inadvertent amnesty. (Hamm, supra,
379 U.S. at p. 314.) Similarly, Rossi concluded the California
general saving statute (see Gov. Code, § 9608) was no impediment to
applying the new legislation to a pending action. (Rossi, supra,
18 Cal.3d at pp. 299-300.) In both cases, the courts recognized that
because the purposes of general saving statutes--to prevent " 'amnesty'
by 'inadverten[ce]' " (U.S. v. Van Den Berg, supra, 5 F.3d at p.
443)--are not implicated when the statutory enactment legitimizes
previously unlawful conduct, the general saving statutes should not be
automatically incorporated by implication into new enactments declaring
previously actionable conduct no longer actionable. Because the CMA
expressly and intentionally insulates certain conduct from state law
sanctions, as did the legislation in Hamm and Rossi, we
are not persuaded by Rankin's claim that the general saving statutes
preclude the application of abatement principles in this case.
Rankin,
arguing Hamm was sui generis and should not be extended beyond
the Civil Rights Act it considered, cites several post-Hamm cases
purportedly holding that an action seeking to hold person liable for
engaging in statutorily-prohibited conduct need not be abated
notwithstanding subsequent legislation removing the statutory
prohibition on such conduct. These cases do not support Rankin's effort
to confine Hamm to its facts. For example, Rankin argues that
U.S. v. Van Den Berg, supra, 5 F.3d 439 held the legalization of
conduct does not abate prosecutions for activities unlawful under the
prior statutory scheme. However, Van Den Berg involved unique
legislation: the law criminalized trade with South Africa but provided
the ban would automatically terminate if the government of South Africa
took certain steps. (Id. at p. 440.) When the executive branch
certified such steps had been taken and the ban therefore lapsed, the
issue was whether a person who had violated the ban could nevertheless
be prosecuted. The court concluded the legislation was a "temporary
statute" within the meaning of the general saving clause, which provides
that the "expiration of a temporary statute shall not have the
effect to release or extinguish any penalty. . . incurred under such
statute." (Id. at pp. 441-443.) Moreover, Van Den Berg
concluded abatement was not required under Hamm because Hamm
involved legislation that expressly repudiated a former prohibition
(e.g. criminal prosecutions for sit-ins) in favor of conferring a right
to engage in sit-ins. In contrast, the legislation under consideration
in Van Den Berg did not represent congressional legislation "repudiat[ing]
the merits of a prior public policy. [The legislation] was designed to
bring about changes to South Africa's internal policies. The sanctions
were terminated only after President Bush determined that they had
succeeded. Van Den Berg may well be correct that Congress intended to
encourage investment in South Africa after the lifting of the
sanctions. However, there is simply no reason to think that it intended
to give amnesty to persons who had violated the sanctions while
they were in effect and thus helped to prolong the reason for their
existence. The Hamm rationale in favor of abatement is
inapplicable here." (Id. at pp. 444-445.) Thus, Van Den Berg
held the prosecution could be pursued because the legislation targeted
conduct that occurred during a finite and temporary time period, and the
purposes of Congress would have been frustrated if those persons
targeted by the enactment could escape punishment precisely because of
its temporary nature. In contrast, the CMA did not impose a temporary
ban on conduct Longs violated during its lifespan; instead, the CMA has
declared that formerly prohibited conduct is now lawful. We believe
this case falls within Hamm and beyond the limited confines of
Van Den Berg.
Rankin's reliance on Pipefitters v. U.S. (1972) 407 U.S. 385 is
also not persuasive. Although Rankin asserts Pipefitters held
that rendering permissible certain previously unlawful acts does not
substitute a right for a crime so that continued prosecution for the
former conduct is abated, Pipefitters expressly stated abatement
was inappropriate because the amendment "does not . . . '[substitute] a
right for a crime.' To the contrary, . . . [the amendment] retains the
basic offense--contributions or expenditures by labor organizations
. . . are still forbidden so long as they are paid for from actual or
effective dues or assessments. We therefore hold that even if there has
been an implied repeal of [the former statute], petitioners remain
punishable under that provision." (Id. at pp. 434-435, italics
added.) In contrast to the Pipefitters legislation, which
retained the criminality of the conduct, the CMA (as did the legislation
in Hamm) eliminated any liability for the formerly proscribed
conduct, and therefore Pipefitters does not support Rankin's
claim that abatement is inapplicable here.
Rankin's reliance on U.S. v. Ross (2d. Cir. 1972) 464 F.2d 376
for the proposition that abatement under Hamm does not apply to
statutory enactments not substituting a substantive right for a crime,
is equally unpersuasive. First, Ross declined to apply the new
statute because the new enactment "specifically
provided that '[p]rosecutions for any violation of the law occurring
prior to . . . [May 1, 1971] shall not be affected by the [repeal] . . .
[of the former law] . . . or abated by reason thereof.' " (Ross,
at p. 379.) Second, the enactment in Ross did not
decriminalize the underlying conduct, but only adopted different
sentencing considerations. (Id. at p. 380.) The CMA, in
contrast, changed the underlying conduct from condemned to condoned and
contained no express anti-abatement clause, rendering Ross
inapposite here.
In the
present case, Congress has replaced California's prohibition against
asking about a certain class of prior convictions with an express right
to ask about those convictions, thereby effecting a partial repeal of
the remedial statute that forms the basis for this action, and did so
without any express saving clause. As in
Zipperer v. County of Santa Clara, supra, 133
Cal.App.4th 1013, this
"[r]epeal
of a remedial statute destroys a pending statutory action unless 'vested
or contractual rights have arisen under' the statute[,] . . . [and in]
this case, no such rights have arisen. . . . [P]laintiffs [do not] have
any vested right in maintaining their statutory claim. ' "No person has
a vested right in an unenforced statutory penalty or forfeiture." '
[Citations.] Until it is fully enforced, a statutory remedy is merely
an ' "inchoate, incomplete, and unperfected" ' right, which is subject
to legislative abolition." (Id. at p. 1024, citation omitted.)
We conclude, as did the courts in Hamm, Rossi and Mann,
that Rankin's pending action to enforce the repealed statutory remedy is
abated, and therefore we affirm the trial court's judgment dismissing
the action.
DISPOSITION
The
judgment is affirmed. Defendant is entitled to costs on appeal.
CERTIFIED FOR
PUBLICATION
McDONALD, J.
WE CONCUR:
BENKE, Acting P. J.
IRION, J.
Longs's Director of Pharmacy Compliance and Senior
Vice-President of Human Resources testified they believed the
question was appropriate based on applicable federal regulations and
discussions with DEA officials.
Because of our conclusions, we do not reach the many
alternative arguments raised by Longs. One of those alternative
arguments--that a statutory award of over $15 million would offend
due process--has prompted Rankin to file with this court a motion
for judicial notice concerning Longs's financial condition. Because
we do not reach Longs's due process claim, we deny Rankin's motion
for judicial notice as moot.
Brebner concluded the delayed effective date of the
provisions it was considering was sufficient to find an intent to
apply the provisions prospectively. However, Brebner
acknowledged that another federal court considering the identical
provisions concluded those provisions operated retrospectively.
(See U.S. v. Brebner, supra, 951 F.2d at p. 1023, fn. 5
[noting conflict between its conclusion and the holding in U.S.
v. Kolter (11th Cir. 1988) 849 F.2d 541].) Rankin also relies
on Kaiser Aluminum & Chemical Corp. v. Bonjorno (1990) 494
U.S. 827 as holding that the delayed effective date of statutory
changes shows an intent the provisions apply prospectively only.
The Kaiser court, however, was not examining a statute that
transformed formerly actionable conduct into nonactionable conduct,
but instead addressed a change in the procedural remedies available
to judgment creditors, e.g., a statute modifying how postjudgment
interest would be calculated.

|