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Ordinance No. NS-XXX <br />Page 2 of 66 <br /> <br /> <br />C. In November 2016, the voters of the State of California approved <br />Proposition 64, the California Marijuana Legalization Initiative, also known as the Adult <br />Use of Marijuana Act. <br />D. In 2017, the Governor signed into law Senate Bill 94 also known as <br />Medicinal and Adult-Use Cannabis Regulation and Safety Act. <br />E. On November 9, 2017, the City Council created Chapter 40 of the Santa <br />Ana Municipal Code (Ordinance No. NS-2929), allowing adult-use commercial <br />cannabis retail businesses in the city, and amended certain sections of Chapters 18 <br />and 21 of the Santa Ana Municipal Code to ensure consistency with State law and <br />Chapter 40. <br />F. Since November 2014, the City of Santa Ana has permitted the retail sale <br />of cannabis for medicinal purposes and since January 2018 for adult-use purposes. <br />On March 20, 2018, the City Council adopted Ordinance NS-2941 and NS-2942, <br />allowing and regulating commercial cannabis testing laboratories. <br />G. On April 17, 2018, the City Council adopted Ordinance NS-2944 allowing <br />and regulating commercial cannabis cultivation, distribution, and manufacturing <br />activities. <br />H. On November 6, 2018, the voters of the City of Santa Ana approved <br />Measure Y (Ordinance NS-2962), establishing a tax on commercial cannabis business <br />activities except medicinal cannabis retail sales, which continue to be subject to taxes <br />under Measure BB. <br />I. On September 3, 2019, the City Council adopted Ordinances NS-2972 and <br />NS-2973 amending certain sections of chapters 18, 21, and 40 of the Santa Ana <br />Municipal Code allowing vertical and horizontal integration of cannabis businesses; <br />updating ownership transfers procedural standards and requirements, security <br />deposits, and various administrative processes; updating and streamlining regulatory <br />components; reducing cannabis testing taxes to the greater amount of one (1%) <br />percent of gross receipts or one and one-half ($1.50) dollars per square foot; and <br />adopting a canopy measurement and square footage allocation service fee. <br />J. The State of California continues to update its regulations on commercial <br />cannabis business licensing, resulting in the need for local jurisdictions to update and <br />amend local commercial cannabis ordinances from time to time. <br />K. It is the desire of the City Council to combine and unify the regulations for <br />medicinal cannabis retail and all other types of commercial cannabis business <br />activities, currently contained in Chapters 18 and 40 of the Santa Ana Municipal Code, <br />respectively, for clarity and cohesion.