75A - PH - CANNABIS UPDATE - Laserfiche WebLink

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The terms vertical integration and horizontal integration as used in this Article shall have the followinq meanings: Vertical integration shall refer to cannabis businesses operating at different points in the same supply chain from cultivation to retail sales, as long as they share at least 80% underlying common ownership, regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. Horizontal integration shall refer to cannabis businesses operating at the same point in the same supply chain, as long as they share at least 80% underlying common ownership regardless of form of business structure, and are engaged in interparty sales and/or transfers of goods. For purposes of this Article the term "cannabis businesses" shall include medicinal marijuana collectives/cooperatives as defined in section 18-611 and commercial cannabis businesses as defined in section 40-2. but shall not include commercial cannabis businesses engaged in testing facilities or testing laboratory businesses. Section 11. Section 21-80 of Article VII of Chapter 21 of the Santa Ana Municipal Code is hereby amended to read in full as follows: Sec. 21-80. - Same —Not conclusive; audit of books. No statement shall be conclusive as to the matters set forth therein, nor shall the filing of the same preclude the city from collecting by appropriate action such sum as is actually due and payable hereunder. Such statement and each of the several items therein contained shall be subject to audit and verification by the collector, his or her revenue officers, or duly authorized employees or agents of the City, who are hereby authorized to examine, audit, and inspect such books and records of any licensee or applicant for license, as may be necessary in their judgment to verify or ascertain the amount of license fee due. All persons subject to the provisions of this Chapter shall keep complete and detailed records of business transactions, including, but not limited to the followinq: rent collected, daily sales, sales taxes collected and paid to the state, any and all city, state and federal taxes collected and remitted from cannabis sales, point of sales (POS) system detailed daily sales data base and summary monthly sales reports, receipts, purchases, and other expenditures, detailed general ledger, income statements, cash flow statements, balance sheets, sales journals, cash disbursement journals and ledgers including payroll journals, third -party staffing agency statements lease agreements, and other reports regarding the number and types of persons employed and/or otherwise engaged in the business, and shall retain all such records for examination by the collector, his or her revenue officers, or duly authorized employees or agents of the City. Such records shall be maintained for the period of the current calendar year, and fora rior period of at least three (3) complete calendar years or from the commencement of business within the city, whichever period is least. In the event such records of any business are not maintained within the city and are not 22 75A-32