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ORDINANCE NO. NS -2962 <br />AN ORDINANCE OF THE CITY OF SANTA ANA CITY <br />COUNCIL ADDING ARTICLE XIII TO CHAPTER 21 OF THE <br />CITY OF SANTA ANA MUNICIPAL CODE RELATED TO A <br />COMMERCIAL CANNABIS BUSINESS LICENSE TAX <br />IMPOSED FOR GENERAL MUNICIPAL PURPOSES, <br />SUBJECT TO THE APPROVAL OF A MAJORITY OF THE <br />VOTERS VOTING AT THE GENERAL MUNICIPAL <br />ELECTION HELD ON NOVEMBER 6, 2018 <br />WHEREAS, in November 2016, the California Marijuana Legalization Initiative, <br />also known as the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved <br />by the <br />voters of the State of California. The AUMA legalized recreational marijuana. <br />WHEREAS, in 2017, the Governor signed into law Senate Bill 94 also known as <br />Medicinal and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing <br />state regulations and licensing for retail sales, manufacturing, distribution, delivery and <br />testing of adult -use (also called recreational) marijuana. <br />WHEREAS, on November 9, 2017, the City Council created Chapter 40 of the <br />Santa Ana Municipal Code, allowing adult -use commercial cannabis retail businesses in <br />the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana Municipal <br />Code to ensure consistency with State law and Chapter 40. Since 2014, the City has <br />allowed medicinal marijuana collectives/cooperatives to operate within the City pursuant <br />to regulations set forth in Chapter 18 and Chapter 21 of the Santa Ana Municipal Code. <br />WHEREAS, on March 20, 2018, the City Council adopted Ordinance NS -2941 and <br />NS -2942, allowing and regulating commercial cannabis testing laboratories. <br />WHEREAS, on May 1, 2018, the City Council adopted Ordinance NS -2944 <br />allowing and regulating commercial cannabis manufacturing, distribution, and cultivation. <br />WHEREAS, a general business license tax based on the gross receipts derived <br />from commercial cannabis businesses and gross square footage would generate <br />essential funds for protecting vital City services and facilities and place such businesses <br />on more equal footing with existing City businesses, including medical marijuana <br />businesses which already pay a business license tax; and <br />WHEREAS, the City Council is authorized to impose general and special taxes in <br />order to fund municipal services and facilities, subject to requisite voter approval as set <br />forth in Government Code section 53720. <br />NOW, THEREFORE, the City of Santa Ana City Council does hereby ordain as <br />follows: <br />Ordinance No. NS -2962 <br />Page 1 of 12 <br />