55A - RESO - CERTIFY 2018 ELECTION

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Exhibit A CITY OF SANTA ANA PROPOSED ORDINANCE NO. NS - AN ORDINANCE OF THE CITY OF SANTA ANA CITY COUNCIL ADDING ARTICLE XIII TO CHAPTER 21 OF THE CITY OF SANTA ANA MUNICIPAL CODE RELATED TO A COMMERCIAL CANNABIS BUSINESS LICENSE TAX IMPOSED FOR GENERAL MUNICIPAL PURPOSES, SUBJECT TO THE APPROVAL OF A MAJORITY OF THE VOTERS VOTING AT THE GENERAL MUNICIPAL ELECTION HELD ON NOVEMBER 6, 2018 WHEREAS, in November 2016, the California Marijuana Legalization Initiative, also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the voters of the State of California. The AUMA legalized recreational marijuana. WHEREAS, in 2017, the Governor signed into law Senate Bill 94 also known as Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing state regulations and licensing for retail sales, manufacturing, distribution, delivery and testing of adult -use (also called recreational) marijuana. . WHEREAS, on November 9, 2017, the City Council created Chapter 40 of the Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal Code to ensure consistency with State law and Chapter 40. Since 2014, the City has allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. WHEREAS, on March 20, 2018, the City Council adopted Ordinance NS -2941 and NS -2942, allowing and regulating commercial cannabis testing laboratories. WHEREAS, on May 1, 2018, the City Council adopted Ordinance NS -2944 allowing and regulating commercial cannabis manufacturing, distribution, and cultivation. WHEREAS, a general business license tax based on the gross receipts derived from commercial cannabis businesses and gross square footage would generate essential funds for protecting vital City services and facilities and place such businesses on more equal footing with existing City businesses, including medical marijuana businesses which already pay a business license tax; and WHEREAS, the City Council is authorized to impose general and special taxes in order to fund municipal services and facilities, subject to requisite voter approval as set forth in Government Code section 53720. NOW, THEREFORE, the City of Santa Ana City Council does hereby ordain as follows: SECTION 1. Recitals. The above recitals are hereby found to be true and accurate and are incorporated into this Ordinance by this reference. SECTION 2. Amendment. Article XIII is hereby added to Chapter 21 of the City of Santa Ana Municipal Code to read in full as set forth in Exhibit A-1, attached hereto and incorporated by reference. SECTION 3. Voter Approval. Article XII I as added to Chapter 21 of the Santa Ana Municipal Code by this proposed Ordinance shall impose a general tax as defined Resolution 2018-049 Page 6 of 16 55A-50