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Planning and Building & Finance and Management Services Agencies <br />santa-ana.org/pb <br />Item # 25 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br />Staff Report <br />September 20, 2022 <br />TOPIC: Ordinance Amendment No. 2022-01 - Commercial Cannabis Regulatory and Tax <br />Updates <br />AGENDA TITLE: <br />Public Hearing - Ordinance Amendment No. 2022-01 to Update Chapters 18, 21, and 40 <br />of the Santa Ana Municipal Code Addressing Medicinal Cannabis Retail, Consumption <br />Lounges and Temporary Events, Measure BB Waitlist Termination, Retail Facility <br />Relocation, Commercial Cannabis Eligible Areas, Commercial Cannabis Tax Rate <br />Reductions for Commercial Cannabis Cultivation, Distribution, and Manufacturing, and <br />Adopt Language Addressing Proposed Tax Treatment of Microbusinesses and Shared <br />Manufacturing, and Make Other Administrative Amendments of a Complimentary Nature <br />RECOMMENDED ACTION <br />1. Approve first reading of an ordinance amending Chapters 18, 21, and 40 of the <br />Santa Ana Municipal Code addressing medicinal cannabis retail, consumption <br />lounges and temporary events, Measure BB Waitlist termination, retail facility <br />relocation, commercial cannabis eligible areas, commercial cannabis tax rate <br />reductions for commercial cannabis cultivation, distribution, and manufacturing, <br />and adopt language addressing proposed tax treatment of microbusinesses and <br />shared manufacturing, and make other administrative amendments of a <br />complimentary nature. <br />2. Adopt a resolution modifying various non-retail commercial cannabis tax rates. <br />3. Adopt a resolution establishing a map of commercial cannabis eligible areas in the <br />City. <br />DISCUSSION <br />Background <br />The City of Santa Ana permits a variety of types of cannabis business activity, which <br />include retail sales of medicinal and adult-use cannabis, and cannabis cultivation, <br />distribution, manufacturing, and testing. These cannabis business activities were <br />permitted through adoption of multiple ordinances beginning with Measure BB (Ordinance