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ORDINANCE NO. NS-3008 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA, AMENDING ARTICLE XX OF CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO AUTHORIZE DISCRETIONARY ALLOCATIONS BETWEEN YOUTH SERVICES AND ENFORCEMENT SERVICES FROM THE CANNABIS FUND THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section 13-203 of Article XX of Chapter 13 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 13-203. - Cannabis Revenue Funding. A. Automatic Deposit of Cannabis Tax Revenues into the Cannabis Fund. The Cannabis Fund shall be funded by an automatic deposit of two- thirds (2/3) of all cannabis tax revenues generated each year, commencing with the Fiscal Year Budget for 2019-2020 and continuing thereafter in the budget for each Fiscal Year, from all of the following: 1) Operating Agreements for Commercial Cannabis businesses and 2) Any newly adopted Cannabis Business License Tax. For purposes of this subsection, in addition to the descriptions provided directly above in this paragraph, the phrase "cannabis tax revenues" means all revenues generated from any new or increased cannabis tax which has been approved by the voters of the City on or after the effective date of this Chapter and any increase of the cannabis tax authorized by the Santa Ana Municipal Code and approved by the City Council. Tax revenue from Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds in the Cannabis Fund shall be carried over from year-to-year. B. Discretionary Deposits into Cannabis Fund not Prohibited. Nothing in this Chapter shall prohibit the City Council, as part of the budgeting process, from contributing additional revenues to the Cannabis Fund, as determined in the City Council's sound legislative discretion. C. Expenditures from the Cannabis Fund. Funds in the Cannabis Fund shall be restricted to 1) Youth Services: expenditures for new, additional or enhanced, as of the date the Cannabis Fund is created, for Youth Services for City of Santa Ana residents and 2) Enforcement Services: expenditures for Enforcement Services to enforce cannabis regulations and other nuisance laws to improve the quality of life of residents. Specific allocations for Youth Services and Enforcement Services shall be made at the sole discretion of the City Council, Ordinance No. NS-3008 Page 1 of 2