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Section 3. Pursuant to the California Environmental Quality Act ("CEQA") and the State CEQA Guidelines, the adoption of this ordinance is exempt from CEQA review pursuant to California Code of Regulations section 15061(b)(3), which is applicable if it can be seen with certainty that there is no possibility that the project may have a significant effect on the environment. As a result, a Notice of Exemption will be filed upon the adoption of this ordinance. Section 4. All provisions of the Santa Ana Municipal Code which are repeated herein are repeated solely in order to comply with the provisions of Section 418 of the City Charter. Any such restatement of existing provisions of the Code is not intended, nor shall it be interpreted, as constituting a new action or decision of the City Council, but rather such provisions are repeated for tracking purposes only in conformance with the Charter. Section 5. Section 21-131.1, Article XI I of Chapter 21 of the Santa Ana Municipal Code is hereby added to read in full as follows: Sec. 21-131.1. Sale, assignment, transfer, or termination of business; marijuana collective/cooperative (medicinal cannabis retail business) owner/operator's duty to notify; remitting and reporting requirements; closeout audit; successor's duty to notify; successor's and transferor's joint and several liability; certificate of nonliability. (a) Owner/Operator's duty to notify. Termination of business. A medicinal marijuana collective/cooperative owner/operator (also referred to herein as medicinal cannabis retail business) who is terminating their business shall notify the collector in writing of such termination at least ninety (90) days in advance of the date of termination of business. If the decision to terminate business is made within less than a ninety (90) day period prior to the date of termination, the owner/operator shall then immediately notify the collector of said decision and the date of termination of business. ii. Sale, assignment, or transfer of business. A medicinal cannabis retail business owner/operator who is selling, assigning, or otherwise transferring their business (hereinafter collectively referred to as transferor) shall notify the collector in writing of such sale, assignment, or transfer at least ninety (90) days in advance of the date of the sale, assignment, or transfer and shall notify the collector in writing of the name and address of the purchaser, assignee, transferee, or other successor in interest (hereinafter collectively referred to as successor) unless the decision to sell, assign, or otherwise transfer their business was made within less than a ninety (90) day period prior to the sale, assignment, or transfer, in which case the transferor shall then immediately notify the successor of the successor's responsibility for unpaid business Ordinance No. NS-2972 Page 3 of 25