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EXHIBIT 1 <br />EXHIBIT 1 <br />LS 6.4.19 <br />ORDINANCE NO. NS-XXXX <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY <br />OF SANTA ANA AMENDING AND ADDING CERTAIN <br />SECTIONS TO ARTICLES XIII, XII, AND VII OF CHAPTER <br />21 OF THE SANTA ANA MUNICIPAL CODE PERTAINING <br />TO OWNERSHIP TRANSFERS, CLOSE OUT AUDIT <br />PROCEDURES (SECTIONS 21-131.1 AND 21-141); <br />VERTICAL INTEGRATION (SECTIONS 21-131.2 AND 21- <br />142); REDUCTION IN THE GROSS RECEIPTS TAX RATE <br />FOR CANNABIS TESTING FACILITIES, DEDUCTIBILITY <br />OF INTERPARTY SALES AND TRANSFERS OF GOODS, <br />CLARIFICATION OF SQUARE FOOTAGE TAX <br />MEASUREMENT REQUIREMENTS (SECTION 21-133); <br />AND REDUCTION OF SECURITY DEPOSIT AMOUNTS <br />AND ESTABLISHMENT OF RELATED PROCEDURAL <br />REQUIREMENTS (SECTIONS 21-80, 21-80.1, 21-86 AND <br />21-136) <br />THE CITY COUNCIL OF THE CITY OF SANTA ANA HEREBY ORDAINS AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines <br />and declares as follows: <br />A. On November 4, 2014, Santa Ana voters approved Santa Ana's Medical <br />Marijuana Regulatory Program ordinance ("Measure BB") which was codified in <br />Chapters 18 and 21 of the Santa Ana Municipal Code. Such regulations govern <br />medicinal marijuana and the retail sale thereof. <br />B. In 2015, the Governor signed into law Senate Bill 643, Assembly Bill 266, <br />and Assembly Bill 243, collectively referred to as the Medical Marijuana Regulation <br />and Safety Act further amended in 2016 as the Medical Cannabis Regulation and <br />Safety Act which established regulations and a state licensing system for medical <br />cannabis cultivation, manufacturing, delivery, and dispensing. <br />1 <br />75A-11 <br />