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Ordinance Amendment No <br />August 20, 2019 <br />Page 8 <br />2019-01 — Commercial Cannabis Ordinance Updates <br />Item Amendment and Impact <br />Administration and Amendment: <br />Implementation <br />Amendments (SAMC Amends Chapter 40 to address State cannabis license type changes, <br />Sections 18-617.5, 40-1, 40- allow microbusiness license for certain commercial cannabis businesses, <br />2, 40-5, 40-8, 40-9.1, and 40- address audits, and minor grammatical corrections. <br />10) <br />Impacts: <br />• Updates certain sections to be consistent with applicable State laws. <br />• Creates internal consistency among Measure 1313 (Chapter 18), Chapter <br />21, and Chapter 40. <br />• Amends operating agreement language to be consistent with Measure Y <br />and specifies minimum requirements for community benefit and <br />sustainable business practices plans, including: <br />o Local hiring and local sourcing; <br />o Community engagement and contributions; and <br />o Sustainable business practices (green buildings, recycling, <br />employee training, etc.). <br />• Streamlines audits and application procedures for non -retail commercial <br />cannabis business applications. <br />Medicinal Cannabis Purchasing Age <br />SAMC Section 18-613 (1) restricts access to medicinal cannabis to those aged 21 and older <br />unless accompanied by a primary caregiver, physician, parent, or documented legal guardian. <br />Amending this restriction to allow individuals age 18 and older to access medicinal cannabis will <br />ensure consistency with Proposition 64, which was approved by California voters in November <br />2016, and will assist with ensuring the long-term viability of medicinal cannabis sales. Adult -use <br />(recreational) cannabis sales will remain restricted to those aged 21 and older. <br />Badges <br />SAMC Sections 18-613 (k) and 40-8 (3) (o) require all agents, private security officers or other <br />persons acting for or employed by a commercial cannabis business to display a laminated <br />identification badge. Moreover, the State of California requires that all commercial cannabis <br />businesses produce badges, subject to inspection by the State. As written, the ordinances <br />indicate that the badges are issued by the business, but the City has produced the badges for all <br />commercial cannabis businesses. The amendment would reinforce that the badges are produced <br />and issued by City of Santa Ana. The amendment would also allow an individual who has <br />previously had a background check performed through the Live Scan process to work at an <br />additional commercial cannabis business without having to order a new Live Scan. The <br />amendment would streamline staff procedures and reduce staff time required to produce badges, <br />and would create flexibility within the cannabis industry to hire individuals who have already been <br />background checked. <br />Non -Volatile and Volatile Manufacturing Requirements <br />75A-9 <br />