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F. 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 />G. The voters of the City of Santa Ana approved Measure Y (Ordinance NS- <br />2962) on November 6, 2018, for the purpose of fixing the rate of taxation for commercial <br />cannabis businesses including delivery, distribution, manufacturing, cultivation, testing <br />and retail sales of cannabis and related products. The taxes required to be paid under <br />this article are declared to be required pursuant to the taxing power of the City of Santa <br />Ana solely for the purpose of obtaining revenue and are not regulatory permit fees. <br />H. The City of Santa Ana desires to remain at the forefront of commercial <br />cannabis by allowing and regulating commercial cannabis business activities, routinely <br />updating and amending its ordinances, and establishing commercial cannabis gross <br />receipts tax rates that are competitive and provide for the needs of the Santa Ana <br />community. <br />I. The City of Santa Ana has a compelling interest in ensuring that cannabis <br />is not sold in an illicit manner, in protecting the public health, safety and welfare of its <br />residents and businesses, in preserving the peace and quiet of the neighborhoods in <br />which these businesses may operate, and in providing access to safe and tested <br />cannabis to residents. To ensure safe and tested cannabis, the City desires to see the <br />establishment and successful operation of testing facilities and testing laboratories in <br />the City. <br />J. Section 21-133 (d) of Article XIII of Chapter 21 of the Santa Ana Municipal <br />Code establishes the initial commercial cannabis testing facility of testing laboratory <br />gross receipts tax rate at five (5%) percent. <br />K. Section 21-133 (c) of Article XIII of Chapter 21 of the Santa Ana Municipal <br />Code allows the City Council by resolution to implement any lower tax rate it deems <br />appropriate. <br />Section 2. The City Council hereby establishes the commercial cannabis <br />testing facility/testing laboratory gross receipts tax rate at two (2%) percent, lowering it <br />from five (5%) percent. The reduced two (2%) percent gross receipts tax rate shall <br />become effective July 1, 2019. <br />H <br />H <br />Resolution No. 2019-roc <br />Page 2 of 3 <br />75F-34 <br />