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LS 9.03.19 <br />RESOLUTION NO. 2019-068 <br />A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF <br />SANTA ANA REDUCING THE COMMERCIAL CANNABIS <br />GROSS RECEIPTS TAX FOR TESTING LABORATORIES <br />FROM FIVE (5%) PERCENT TO ONE (1 %) PERCENT <br />BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS <br />FOLLOWS: <br />Section 1. The City Council of the City of Santa Ana hereby finds, determines and <br />declares as follows: <br />A. In November2016, the California Marijuana Legalization Initiative, also known as <br />the Adult Use of Marijuana Act (AUMA or Proposition 64) was approved by the <br />voters of the State of California. The AUMA legalized recreational marijuana. <br />B. In 2017, the Governor signed into law Senate Bill 94 also known as Medicinal <br />and Adult -Use Cannabis Regulation and Safety Act (MAUCRSA) establishing <br />state regulations and licensing for retail sales, manufacturing, distribution, <br />delivery and testing of adult -use (also called recreational) marijuana. <br />C. On November 9, 2017, the City Council created Chapter 40 of the Santa Ana <br />Municipal Code, allowing adult -use commercial cannabis retail businesses in <br />the city, and amended certain sections of Chapters 18 and 21 of the Santa Ana <br />Municipal Code to ensure consistency with State law and Chapter 40. Since <br />2014, the City has allowed medicinal marijuana collectives/cooperatives to <br />operate within the City pursuant to regulations set forth in Chapter 18 and <br />Chapter 21 of the Santa Ana Municipal Code. <br />D. On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS- <br />2942, allowing and regulating commercial cannabis testing laboratories. <br />E. A general business license tax based on the gross receipts derived from <br />commercial cannabis businesses and gross square footage would generate <br />essential funds for protecting vital City services and facilities and place such <br />businesses on more equal footing with existing City businesses, including <br />medical marijuana businesses which already pay a business license tax. <br />F. The City Council is authorized to impose general and special taxes in order to <br />fund municipal services and facilities, subject to requisite voter approval as set <br />forth in Government Code section 53720. <br />G. The voters of the City of Santa Ana approved Measure Y (Ordinance NS-2962) <br />on November 6, 2018, for the purpose of fixing the rate of taxation for <br />Resolution No. 2019-068 <br />Page 1 of 3 <br />