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