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Planning and Building <br />santa-ana.org/departments/planning-and-building <br />Item # 22 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />October 4, 2022 <br />TOPIC: Ordinance Second Reading - Commercial Cannabis Amendments <br />AGENDA TITLE: <br />Ordinance Amendment No. 2022-01 – Commercial Cannabis Amendments Second <br />Reading <br />RECOMMENDED ACTIONS <br />1. Place on second reading and adopt Ordinance Amendment No. 2022-01 to Update <br />Chapters 18, 21, and 40 of the Santa Ana Municipal Code Addressing Medicinal <br />Cannabis Retail, Consumption Lounges and Temporary Events, Retail Facility <br />Relocation, Commercial Cannabis Eligible Areas, Commercial Cannabis Tax Rate <br />Reductions for Commercial Cannabis Retail, Cultivation, Distribution, and <br />Manufacturing, and Adopt Language Addressing Proposed Tax Treatment of <br />Microbusinesses and Shared Manufacturing, and Make Other Administrative <br />Amendments of a Complimentary Nature. <br />2. Adopt a resolution modifying various commercial cannabis retail and non-retail tax <br />rates. <br />3. Adopt a resolution modifying the medicinal cannabis retail tax rate. <br />4. Adopt a resolution establishing a map of commercial cannabis eligible areas in the <br />City, the number of annual temporary consumption events, and the community <br />benefit, sustainable business practices, and social equity plan template. <br />DISCUSSION <br />On September 20, 2022, the City Council considered an ordinance and accompanying <br />resolutions to update Chapters 18, 21, and 40 of the Santa Ana Municipal Code <br />addressing medicinal cannabis retail; the number of retail storefronts; termination of the <br />Measure BB Waitlist; consumption lounges and temporary events; retail facility relocation; <br />commercial cannabis eligible areas; commercial cannabis tax rate reductions for <br />cultivation, distribution, and manufacturing; and adopt language addressing proposed tax <br />treatment of microbusinesses and shared manufacturing; and other administrative <br />amendments of a complimentary nature. The City Council provided direction to follow <br />staff’s recommendation, but with the following modifications: <br />1. Remove language allowing five (5) additional commercial cannabis retail <br />businesses;