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REQUEST FOR <br />COUNCIL ACTION <br />CITY COUNCIL MEETING DATE: <br />JULY 16, 2019 <br />TITLE: <br />PUBLIC HEARING — APPROVE ORDINANCE <br />AMENDMENT NO.2019-01 TO AMEND <br />CERTAIN SECTIONS OF CHAPTERS 18, 21, <br />AND 40 OF THE SANTA ANA MUNICIPAL <br />CODE ALLOWING VERTICAL AND <br />HORIZONTAL INTEGRATION OF <br />CANNABIS BUSINESSES; UPDATING <br />OWNERSHIP TRANSFERS PROCEDURAL <br />STANDARDS AND REQUIREMENTS, <br />SECURITY DEPOSITS, AND VARIOUS <br />ADMINISTRATIVE PROCESSES; UPDATING <br />AND STREAMLINING REGULATORY <br />COMPONENTS; REDUCING CANNABIS <br />TESTING TAXES TO TWO PERCENT OF <br />GROSS RECEIPTS; AND ADOPTING A <br />CANOPY MEASUREMENT AND SQUARE <br />FOOTAGE ALLOCATION SERVICE FEE <br />(STRATEGIC PLAN NOS. 3, 2; 3, 3; 3, 5; 4, 3) <br />I'll CITNrMANAGER <br />RECOMMENDED ACTION <br />CLERK OF COUNCIL USE ONLY: <br />APPROVED <br />❑ As Recommended <br />❑ As Amended <br />❑ Ordinance on ls' Reading <br />❑ Ordinance on 2ntl Reading <br />❑ Implementing Resolution <br />❑ Set Public Hearing For <br />CONTINUED TO <br />FILE NUMBER <br />Adopt an ordinance allowing vertical integration of certain commercial cannabis businesses; <br />updating operational and procedural standards for implementing the City's medicinal and <br />commercial cannabis ordinances, decrease security deposit amount requirements, compute <br />square footage cannabis taxes based on allocation of gross square footage usage; and <br />reducing the commercial cannabis testing laboratory tax from five (5) to two (2) percent. <br />2. Adopt an ordinance amending various sections of Chapters 18 and 40 of the Santa Ana <br />Municipal Code addressing medicinal cannabis purchasing age, employee badge <br />requirement, manufacturing permit requirements, and ordinance administration and <br />implementation. <br />3. Adopt a resolution reducing the gross receipts tax on commercial cannabis testing <br />laboratories from five (5) to two (2) percent. <br />4. Adopt a resolution implementing a canopy measurement service fee and an allocated square <br />footage measurement service fee to cover the City's cost in independently verifying the <br />allocation of square footage usage by commercial cannabis businesses. <br />75A-1 <br />