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Ordinance Amendment No. 2019-01 — Commercial Cannabis Ordinance Updates <br />August 20, 2019 <br />Page 6 <br />business hub in Santa Ana. Reducing the cannabis testing laboratory gross receipts rate from 5 <br />to 2 percent will maintain Santa Ana's overall competitive edge in the medicinal and commercial <br />cannabis industries by promoting a healthy mix of business types, employment opportunities, and <br />equipment investment in Santa Ana's industrial areas. <br />Positive Impacts of Code Amendments <br />There are multiple commercial cannabis business start-ups pending with the Planning and <br />Building Agency that would benefit from vertical and horizontal integration. For these businesses <br />to move forward with their permitting and licensing processes, assurance that the City will provide <br />local tax treatment based on principles of vertical and horizontal integration, that issues related to <br />security deposits and gross square footage assessment will be addressed, and that the <br />ordinance is being routinely examined to identify areas for streamlining and modernization will <br />provide a stronger foundation for success in the City. The medicinal and commercial cannabis <br />ordinance updates recommended by staff provide this assurance and will serve to "jump-start" <br />commercial cannabis business activity in the City, while at the same time accomplishing all other <br />objectives of the City in securing reliable and continuing receipt of resulting cannabis revenues. <br />Regulatory Amendments (Chapters 18 and 40) <br />In addition to the proposed changes listed in Table 1, the City is proposing to update and streamline <br />certain sections of Chapter 18 (Medicinal Marijuana) and Chapter 40 (Commercial Cannabis <br />Business Activities Other Than Medicinal Marijuana). Table 2 (Proposed Amendments to Chapters <br />18 and 40) describes the regulatory -framework ordinance amendments. <br />Table 2: Proposed Regulatory Amendments <br />Item <br />Amendment and Impact <br />Medicinal Cannabis <br />Amendment: <br />Purchasing Age (SAMC <br />Section 18-613) <br />Amends Chapter 18 to reduce minimum purchasing age for medicinal <br />cannabis products from 21 to 18. <br />Impacts: <br />• Establishes consistency with State cannabis retail laws. <br />• Retains adult -use retail sales' minimum purchasing age at 21, which is <br />also consistent with State cannabis retail laws. <br />75A-6 <br />